Feb 6, 2019
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…
This month’s Brooklyn rental market data was much better than in November when almost all trends were down. While there are still some signs of a moderate correction, there was more positive data on a month over month basis. Year over year figures suggest the Brooklyn rental market is still growing.
Among the most notable stats over the last month were a 14% drop in one bedroom leases being signed. The luxury market really stands out on an annual basis, with a 15.2% rise in median rental rate, and 12.8% increase in new development rental rates.
Month over month, Price per square foot fell 0/7%. Listing inventory rose by 12.3%, and days on market reversed course, rising by 14.8% to just 31 days on average.
Year over year, rental prices are up an average of 3.7% over the same period in 2017. The number of leases being signed rose by 2.5%. Inventory is down by 13.8%, though marketing time has grown by 6.9%. Listing discounts decreased 0.2%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,386
The most expensive leased was: $4,500 per month
The least expensive was: $1,495
The average price per foot is $56
average unit size is down to 606 square feet
5 studios were No Fee, and 73 were Fee apartments
Month over month changes saw rents up 4.8%, and 12% year over year.
Units with elevators rented for around $300 more per month more than walk-up units last month.
While gyms are still an in-demand amenity, those without gyms actually rented for $5 more per square foot in December.
Units with full-time lobby attendance actually rented for around $250 more per month more.
Having laundry in the building added around $200 to rental rates last month.
For 1 bedrooms...
The average rental rate was: $2,799
The most expensive leased was: $4,950
The least expensive was: $1,450
The average price per foot is down to $45
The average unit size is up to 758 square feet
4, 1-beds were No Fee, versus 78 Fee apartments
Month over month rents are down 4.7%
year over year rents are up 07%
No fee 1 bedrooms rented for around $200 more per month.
Having laundry in the building saw 1-beds renting for $7 more per square foot
Units with private outdoor space are renting for around $100 more per month
The difference in rents for elevator versus walk-up units is almost $400 per month
Units with gyms rented for $9 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $500 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average rental rate was: $3,734
The most expensive leased was: $8,500
The least expensive was: $1,700
The average price per foot is $44
average unit size is 1,027 square feet
Just 3, 2 bedroom apartment was a No Fee rental, versus 81 Fee rentals
Month over month rents are down 0.8%
Year over year they are up 5.5%
Having laundry in the building added $14 per square foot to the rent last month
Those WITH private outdoor spaces rented for $6 more per square foot
A 2 bedroom with a gym in the building is renting for over $900 more per month
Those with full-time lobby attendant are renting for around $1,800 more per month.
There is around a $1,400 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $4,031
The most expensive leased was: $8,000
The least expensive was: $2,300
The average price per foot was at $38 in December
The average unit size is 1,291 square foot
2, 3 bedroom rentals were No Fee, versus 39 rentals with Fee
Month over month rents are down 5.2%
year over year rents are down 2.4%
NO FEE apartments rented for around $1,300 MORE than fee apartments last month.
Those with gyms rented for $23 more per square foot.
Having laundry in the building made a $10 difference per square foot last month
Units WITHOUT private outdoor space rented for almost $1,100 less in December 2018
Elevator apartments rented for $13 more per square foot last month
Having a full-time lobby attendant made a $23 per square foot difference
In spite of all the negative media coverage on the New York real estate market, and a weak November, the data shows the Brooklyn rental market ended 2018 on a healthy note.
The numbers may show some signs of a correction. Yet, year over year there seems to continue to be a nice pace of growth. Certainly better than the performance of the stock market and bonds.
Those that refuse to be distracted or panicked by short term ticker type media, and keep their eye on the big picture can still do well. It’s all about long term leasing and asset management strategy, as well as smart marketing.
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. Plus, don’t miss our new report on Manhattan and Brooklyn Piers. Including where to go, how innovation is reinventing them as exciting places to hang out, workout and live.
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!