Oct 14, 2018
New York Real Estate Market Updates
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 kept its gains over the last year, even though rental prices appear to have lost some of their momentum from July. This is not uncommon in the fall, after the busier summer leasing and home buying season.
Among the most notable stats over the last month were the 8.1% increase in studio prices Prospect Leffert Garden, and 6% rise in Downtown Brooklyn one-bedroom rental prices.
Last month the most expensive rentals leased were all in DUMBO, and the least expensive was all in Bay Ridge.
Month over month, Price per square foot rose by 0.5%. Listing inventory fell by 3.9%, and days on market fell again to just 26 days on average.
Year over year, the Brooklyn rental market appears to be in even better shape. Rental prices are up an average 1.7% over the same period in 2017. The number of leases being signed rose 0.3%. Inventory is down 24.2%, marketing time has dropped by 14 days. Although concessions are up 21.7%, negotiability and discounts are down by almost 1%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,482
The most expensive leased was: $6,700 per month
The least expensive was: $1,100
The average price per foot is down to $55.97
average unit size is down to 614 square feet
19 studios were No Fee, and 141 were Fee apartments
Month over month changes saw rents down 0.6%, and price per square foot declined -2.5%
Units with elevators rented for just $39 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 around $200 a month more.
Having a laundry in the building added around $300 a month to rental rates.
For 1 bedrooms...
The average rental rate was: $2,850
The most expensive leased was: $7,500
The least expensive was: $800
The average price per foot is up slightly by 2%
The average unit size is down to 771 square feet
2, 1 beds were No Fee, versus 80 Fee apartments
Month over month rents are down 1.8%
year over year rents are up 1.2%
No fee 1 bedrooms rented for almost a $600 less per month.
Having a laundry in the building saw 1 beds renting for $4 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 almost $600 per month
Units with gyms rented for $8 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $600 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average rental rate was: $3,552
The most expensive leased was: $6,825
The least expensive was: $1,750
The average price per foot is $45.53
average unit size is 1,000 square feet
4, 2 bedroom apartments were No Fee rentals, versus 79 Fee rentals
Month over month rents are down 0.3%
Year over year they are up 2.6%
Having a laundry in the building added $5 per square foot to the rent last month
Those WITH private outdoor spaces rented for $2 more per square foot
A 2 bedroom with a gym in the building is renting for over $1,000 more per month
Those with full-time lobby attendant are renting for around $1,400 more per month.
There is around a $1,100 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $4,257
The most expensive leased was: $8,500
The least expensive was: $2,300
the average price per foot was at $42.60 in August
The average unit size is 1,151 square foot
1, 3 bedroom rental was No Fee, versus 32 rentals with Fee
Month over month rents are down 10.1%
year over year rents are UP 3.7%
No FEE apartments rented for around $4,000 MORE than fee apartments last month.
Those with gyms rented for $17 more per square foot.
Having a laundry in the building made a $2 difference per square foot last month
Units with no private outdoor space actually rented for $72 more in August 2018
Elevator apartments rented for $13 more per square foot last month
Having a full-time lobby attendant made a $20 per square foot difference
What the break down in this data shows Brooklyn landlords, is that the market is still strong. Perhaps stronger than many realized. While month over month data shows Brooklyn rentals might have been a little hotter in June and July, year over year figures show growth overall. Any negative data is quite likely a reflection of seasonal changes. Positive movements in inventory and marketing time show that well priced and marketed units, with attractive deals are still leasing within a reasonable period of time.
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.
Make sure you check out our vendor section for all the best resources you need for renovating, financing, managing and protecting your real estate assets in New York.
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!