Jun 17, 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 is a refreshing change to the recent doom and gloom rumors about the economy and NYC property market. Leasing activity has surged, with intense competition between new apartment developers.
The most expensive rentals in March 2019 were found in Dumbo. The least expensive were all in Bay Ridge.
Among the most notable stats over the last month were a 48.1% increase in studio leases being signed. Followed by a 30.5% rise in two bedroom leasing.
Month over month, Across all unit, types price per square foot rose by 2%. Yet, listing inventory still rose by 6.1%. Days on market dropped by 7.1% to just 26 days on average.
Year over year, rental prices are up an average of 3.2% over the same period in 2018. The number of new leases being signed rose by 40.3%. Inventory is down by 1.6%, marketing time has reduced by 2 days. Free rent offered by owners rose 6.7%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,500
Average price per foot is $55.30
1 studio was No Fee, and 21 were Fee apartments
Month over month changes saw rents down 4.8% but up 4.7% year over year.
Units with elevators rented for around $200 more per month more than walk-up units last month.
Gyms are still an in-demand amenity, adding almost $700 to the monthly rent.
Units with full-time lobby attendance rented for around $700 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: $2,856
Average price per foot is down to $49
3, 1 beds were No Fee, versus 108 Fee apartments
Month over month rents are up 3.2%
year over year rents are up 6%
No fee 1 bedrooms rented for around $500 less per month.
Having a laundry in the building saw 1 beds renting for $3 more per square foot
Units with private outdoor space are renting for almost $100 more per month
The difference in rents for elevator versus walk-up units is almost $900 per month
Units with gyms rented for $10 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: $3,471
A $400 per month increase since January 2019
Average price per foot is $45.06
average unit size is 951 square feet
Just 5, 2 bedroom apartment were a No Fee rental, versus 89 Fee rentals
Month over month rents are up 0.7%
Year over year they are down 1.1%
Having a laundry in the building added $5 per square foot to the rent last month
Those WITH private outdoor spaces rented for almost $700 more per month
A 2 bedroom with a gym in the building is renting for over $1,700 more per month
Those withfull-timee lobby attendant are renting for around $1,000 more per month.
There is around a $1,000 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $4,615
The average price per foot was at $41.48 in March
The average unit size is 1,165 square feet
Month over month rents are up 7.3%
year over year rents are up 8.3%
Those with gyms rented for $11 more per square foot.
Having a laundry in the building made a difference of almost $700 a month in March.
Units WITHOUT private outdoor space rented for almost $300 less in March 2019
Elevator apartments rented for $10 more per square foot last month
This data shows the Brooklyn rental market beginning 2019 on a healthy note, and marching upwards with some of the strongest gains we’ve seen in a while.
Year over year there seems to continue to be a nice pace of growth, and a great surge in new leases being signed. 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.
Some of this surge in new leasing could be due to renters jumping to new landlords to take advantage of special deals and to 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!