May 22, 2018
Welcome to the New York Real Estate Market Update
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 continued to thaw out, and is seeing more improvements as we head toward the peak spring and summer real estate season.
Even though some of the positive data may be credited to landlords offering better deals and concessions, everyone should be pleased that the market appears to be shaking off the gloom of last winter. That is with the exception of renters who may not see a break coming in much lower rents.has seen seasonal softness in rentals over the past few months.
Overall, Brooklyn rental prices nudged up by an average of 1% in March 2018. There was still some softness in a few neighborhoods which saw rents down by less than 1%. Those included; Bay Ridge, Bed-Stuy and Williamsburg.
Top performers, include this month include Bushwick, Crown Heights and Prospect Lefferts Gardens again.
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 16% rise in DUMBO 2 bedroom rental rates, taking the average up by over $900 per month.
Month over month, Price per square foot rose again. This time by 3.5%. Listing inventory rose 1.2%, and days on market slide further, by 8.8%, standing at 28 days on average.
Year over year, Brooklyn rental prices are still not in much better shape. Rental rates are down an average of almost 1.4% over the same period in 2017. The number of leases being signed also fell this month, by over 21%. That’s despite an over 30% rise in OP and concessions. On average landlords are now giving up 1.5 months of free rent to new tenants.
Now let’s take a look at rentals by unit type:
Average price per foot is down slightly to $52
average unit size is up slightly to 542 square feet
30 studios are No Fee, and 127 are Fee apartments
Month over month changes saw rents fall 4.9%, though price per square foot rose another 1.5%.
And year over year rents are down 9.1%
Units with elevators rented for more than $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 $600 per month to rents last month.
Units with full time lobby attendance are renting for almost $300 a month more. Less, than last month, though we could see even more digital and virtual assistants and doormen close this gap.
There was only a minor premium for outdoor space.
For 1 bedrooms...
Average price per foot is up slightly at $46.23
The average unit size is down again, to 711 square feet
6 1 beds were No Fee, versus 124 Fee apartments
Month over month change rents are down 1%
year over year rents are down 2%
No fee 1 bedrooms rented for $12 more per square foot than fee apartments last 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 $244 less per month
The difference in rents for elevator versus walk-up units is $7 per square foot
Units with gyms rented for $7 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 2 bedroom apartment in Brooklyn now rents for $3,004
Average price per foot is $44
average unit size is 827 square feet
3, 2 bedroom apartments were No Fee rentals, versus 35 Fee rentals
Month over month rents are up 1.9%
But year over year they are up 0.1%
Having a laundry in the building can add almost $400 per month to the rent.
Those WITHOUT private outdoor spaces actually rented for $5 more per square foot
A 2 bedroom with a gym in the building is getting $16 more per square foot
Those with full time lobby attendant are renting for around $8,000 more per month.
There is around a $600 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
the average price per foot is down to $36
The average unit size is down sharply to 759 square foot
1, 3 bedroom rental was No Fee, versus 73 rentals with Fee
Month over month rents are down 6.4%
year over year rents are UP 0.8%
No FEE apartments rented for around $2,000 more than fee apartments last month.
Those with gyms rented for $6 more per square foot.
Having a laundry in the building can make a $16 difference per rent per square foot
Expect to get as much almost $1,000 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, 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 those who make concessions seem to be able rent faster and even keep rents heading up.
Once again, one of the biggest changes in March was for 2 bedroom rental prices, suggesting that contrary to some media suggestions, NY renters actually want more space. However, most categories seem to have seen size of units being leased shrinking over the last month. That may reflect smaller new construction units coming onto the market.
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.
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…
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