Jun 10, 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. Finally, after 3 years, the amount of landlord concessions has begun to improve, those most still offered an average of 1.6 months of free rent to lure in new renters.
Among the most notable stats over the last month were a 40.6% increase in one bedroom leases being signed. Studio rental prices rose 41.6% year over year on a per square foot basis and 7.2% month over month.
Month over month, Across all unit, types price per square foot fell 2.4%. Listing inventory fell by 4.2%, and days on market reversed course, dropping by 4 days to just 31 days on average.
Year over year, rental prices are up an average of 0.8% over the same period in 2018. The number of leases being signed rose by 5.5%. Inventory is down by 2.3%, marketing time has reduced by 11.4%. Listing discounts decreased by 0.3%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,481
Average price per foot is $52.89
4 studios were No Fee, and 86 were Fee apartments
Month over month changes saw rents down 5%, but up 2.9% 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 $16 more per square foot in December.
Units with full-time lobby attendance rented for around $400 more per month more.
Having a laundry in the building added around $400 to rental rates last month.
For 1 bedrooms...
The average rental rate was: $2,822
Average price per foot is down to $47.52
1, 1 bed was No Fee, versus 113 Fee apartments
Month over month rents are up 5.7%
year over year rents are up 4%
No fee 1 bedrooms rented for around $600 less per month.
Having a laundry in the building saw 1-beds renting for $10 more per square foot
Units with private outdoor space are renting for almost $400 more per month
The difference in rents for elevator versus walk-up units is almost $700 per month
Units with gyms rented for $18 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $900 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average rental rate was: $3,071
Average price per foot is $38
average unit size is 975 square feet
Just 2, 2 bedroom apartment was a No Fee rental, versus 81 Fee rentals
Month over month rents are down 3.5%
Year over year they are up 10.7%
Having a laundry in the building added $9 per square foot to the rent last month
Those WITH private outdoor spaces rented for $9 more per square foot
A 2 bedroom with a gym in the building is renting for over $700 more per month
Those with full-time lobby attendant are renting for around $700 more per month.
There is around a $400 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $3,383
The average price per foot was at $35 in January
The average unit size is 1,153 square foot
Month over month rents are up 6.4%
year over year rents are down 7%
Those with gyms rented for $4 more per square foot.
Having a laundry in the building made a difference of almost $700 a month in January.
Units WITHOUT private outdoor space rented for almost $200 less in January 2019
Elevator apartments rented for $9 more per square foot last month
Having a full-time lobby attendant made an $11 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 began 2019 on a healthy note.
Yet, year over year there seems to continue to be a nice pace of growth, and a great surge in 1 bedroom apartment leases. The sizable differences in rents for units with superior amenities also show how demanding tenants have become, as well as reflecting new construction units being snapped up.
However, some of this surge in new leasing could be due to renters jumping to new landlords to take advantage of special deals and avoid rent hikes in current apartments. Making it worth consulting a local expert before you raise the rent again.
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!