Oct 14, 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 posted some great gains. Probably even better than most think. Although the resulting reduction in rental inventory also happens to directly mirror the increase in concessions being offered by landlords..
Overall, it’s been a very strong month. Brooklyn rental prices rose by an average of 5.5% in July 2018.
Among the most notable stats over the last month were the 23.5% increase in new 3 bedroom leases being signed, and 6.3% rise in luxury rental unit leases.
Month over month, Price per square foot rose by 3.5%. Listing inventory rose by 4.8%, and days on market held steady at 27 days on average.
Year over year, Brooklyn rentals appear to be in much better shape by many measures. Rental prices are up an average 5.5%% over the same period in 2017. The number of leases being signed rose 11.2%. Though more landlords have been offering more appealing deals to lure tenants this year. Concessions are up 19.3% since last year.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,498
The most expensive leased was: $8,000 per month
The least expensive was: $1,350
The average price per foot is $57.40
average unit size is up to 637 square feet
23 studios were No Fee, and 149 were Fee apartments
Month over month changes saw rents down 0.6%, and price per square foot declined -2.4%
Units with elevators rented for almost $500 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 $600 per month to rents last month.
Units with full-time lobby attendance are renting for around $500 a month more.
Having a laundry in the building added around $100 a month to rental rates.
For 1 bedrooms...
The average rental rate was: $2,903
The most expensive leased was: $7,495
The least expensive was: $1,200
The average price per foot is up slightly by 0.3%
The average unit size is up to 779 square feet
13, 1 beds were No Fee, versus 170 Fee apartments
Month over month change rents are up 4.8%
year over year rents are up 5.6%
No fee 1 bedrooms rented for $15 more per square foot than fee apartments last month, for almost a $1,000 difference 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 $700 per month
Units with gyms rented for $9 more per square foot last month.
Buildings withfull-timee 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: $3,564
The most expensive leased was: $1,899
The least expensive was: $8,500
Average price per foot is $44.74
average unit size is 1,019 square feet
2, 2 bedroom apartments were No Fee rentals, versus 130 Fee rentals
Month over month rents are up 5.4%
Year over year they are up 2.9%
Having a laundry in the building can added $5 per square foot to the rent last month
Those WITH private outdoor spaces rented for $5 more per square foot
A 2 bedroom with a gym in the building is renting for almost $700 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: $4,735
The most expensive leased was: $11,900
The least expensive was: $2,099
the average price per foot was at $44.17 in June
The average unit size is 1,235 square foot
2, 3 bedroom rental were No Fee, versus 50 rentals with Fee
Month over month rents are down 1.8%
year over year rents are UP 13.6%
No FEE apartments rented for around $1,000 less than fee apartments last month.
Those with gyms rented for $21 more per square foot.
Having a laundry in the building made a $9 difference per square foot last month
Expect to get as much as $1,100 more per month for units with private outdoor space
Elevator apartments rented for $9 more per square foot last month
Having a full time lobby attendant made a $10 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, year over year figures show great growth. Still, some of this is definitely due to many landlords are concessions and offering leasing specials.
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!