Jun 13, 2018
Welcome to the New York Real Estate Market Update
Here we dig into the latest data and trends to find out what is really happening in the local Brooklyn rental market to help landlords, real estate investors, and developers make the smartest financial moves.
So, what’s new in New York Real Estate? Let’s take a look at the numbers…
Month over month, the data shows the Brooklyn rental market has maintained recent gains as we move through the peak spring and summer real estate season.
Some of the positive data may be credited to landlords offering better deals and concessions, though everyone should be pleased that the market appears to be on the better ground than at the beginning of the year. The exception may be renters who may not see a break coming in much lower rents.
Overall, Brooklyn rental prices nudged up by an average of 0.18% in April 2018. Overall, almost all of Brooklyn saw a positive month for rentals. The few exceptions where some minor softness was seen include Williamsburg, Cobble Hill, DUMBO, Brooklyn Heights and Bushwick.
DUMBO still holds the title for most expensive apartments in Brooklyn, thanks to new luxury units.
The most affordable rental apartments are being seen in Bay Ridge.
Among the most notable stats over the last month was the almost 7.2% rise in rents in Prospect Lefferts Gardens. Followed by a 6.52% rise in Crown Heights, a 6.19% increase for 2 bedroom apartments in Downtown Brooklyn and a 6.1% bump up for Clinton Hill studio prices.
Month over month, Price per square foot fell by 1.1%. Listing inventory rose 7.1%, and days on market slide further, to 29 days on average.
Year over year, Brooklyn rental prices are still not in much better shape. Rental prices are up an average 1.5% over the same period in 2017. The number of leases being signed also rose by a modest 1.6%. That’s despite an almost 40% rise in OP and concessions. On average landlords are now giving up almost 2 months of free rent to new tenants.
Now let’s take a look at rentals by unit type:
The average price per foot is up slightly to $55
average unit size is up slightly to 650 square feet
23 studios are No Fee, and 124 are Fee apartments
Month over month changes saw rents up 5.4%, though the price per square foot dropped 2.2%.
Year over year rents are down 0.7%
Units with elevators rented for almost $400 per month more than walk-up units last month.
Gyms are still one of the top amenities tenants are looking for. They added an average of around $500 per month to rents last month.
Units with full-time lobby attendance are renting for almost $300 a month more.
There was only a minor premium for outdoor space.
For 1 bedrooms...
The average price per foot is up slightly at $48
The average unit size is up to 722 square feet
12 1 beds were No Fee, versus 143 Fee apartments
Month over month change rents are up 3.1%
year over year rents are up 2.5%
No fee 1 bedrooms rented for over $500 more per square foot than fee apartments last month.
Having a laundry in the building saw 1 beds renting for $8 more per square foot
Units with NO private outdoor space are renting for around $300 less per month
The difference in rents for elevator versus walk-up units is $600 per month
Units with gyms rented for $11 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $700 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average 2 bedroom apartment in Brooklyn now rents for $3,165
The average price per foot is $41
average unit size is 941 square feet
4, 2 bedroom apartments were No Fee rentals, versus 226 Fee rentals
Month over month rents are down 1.9%
But year over year they are down 3.1%
Having a laundry in the building can add $5 per square foot to the rent last month
Those WITH private outdoor spaces rented for $3 more per square foot
A 2 bedroom with a gym in the building is renting for almost $800 more per month
Those with full-time lobby attendant are renting for around $150 more per month.
There is around a $400 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
the average price per foot was at $35 in April
The average unit size is up to 1,061 square foot
1, 3 bedroom rental was No Fee, versus 99 rentals with Fee
Month over month rents are down 0.5%
year over year rents are UP 2.9%
No FEE apartments rented for almost $3,000 more than fee apartments last month.
Those with gyms rented for $22 more per square foot.
Having a laundry in the building can make an $18 difference per rent per square foot
Expect to get $150 more per month for units with private outdoor space
Elevator apartments actually rented for $5 less per square foot last month
Having a full-time lobby attendant made a $30 per square foot difference, with total monthly rent almost $3,000 more for 3 bedroom units in these buildings
What the break down in this data shows Brooklyn landlords, is that the market is still strong, but many landlords are making concessions to be able to rent faster and even keep rents heading up. Over 50% are leasing with some type of special incentives.
Find out more about the current market, competing listings, and where to get the best help in leasing your rental units by contacting The Ratner Team.
Plus, make sure to check out the special edition of the Brooklyn Made blog revealing what’s in store for Brooklyn real estate for the next 100 years, including what’s being developed where, and the types of projects and zoning the Brooklyn Chamber of Commerce is pushing for.
Well, that’s this month’s NY rental market update.
Leave us a comment and let us know what you are experiencing in the market, and what you’d like more detail on in the next report…
Thanks for tuning in!