Jul 22, 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 maintained strength through the beginning of the peak summer real estate season, with more positive data possible as we experience the rush before school starts up again.
Some of the positive data may be credited to landlords offering better deals and concessions, though everyone should be pleased that the market appears to be on the better ground than at the beginning of the year. The exception may be renters who may not see a break coming in much lower rents.
Overall, Brooklyn rental prices nudged up by an average of 1.2% in May 2018. Overall, almost all of Brooklyn saw a positive month for rentals, with existing rentals seeing the best performance compared to new development.
Month over month, Price per square foot fell by just 0.7%. Listing inventory fell 4.4%, and days on market slide further, to just 28 days on average.
Year over year, Brooklyn rental prices are still not in much better shape. Rental prices are up an average 0.6% over the same period in 2017. The number of leases being signed also rose by a modest but encouraging 11.4%. While over 42% of Brooklyn landlords are offering special deals and concessions to lure tenants, on average landlords are now giving up only 1.5 months of free rent to new tenants.
Now let’s take a look at rentals by unit type:
The average price per foot is up slightly by 2.7%
average unit size is down slightly to 549 square feet
18 studios are No Fee, and 141 are Fee apartments
Month over month changes saw rents down 4.2%
Year over year rents are down 1.9%
Units with elevators rented for almost $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 $500 per month to rents last month.
Units with full-time lobby attendance are renting for almost $700 a month more.
There was only $4 per square foot premium for private outdoor space.
For 1 bedrooms...
The average price per foot fell slightly by 0.2%
The average unit size is up to 742 square feet
6 1 beds were No Fee, versus 163 Fee apartments
Month over month change rents are down 0.6%
year over year rents are up 2.4%
No fee 1 bedrooms rented for over $600 more per square foot than fee apartments last month.
Having a laundry in the building saw 1 beds renting for $5 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 around $300 per month
Units with gyms rented for $11 more per square foot last month.
Buildings with full-time lobby attendants are renting for almost $600 more per month than those without attendants.
Now on to 2 bedroom rentals…
The average 2 bedroom apartment in Brooklyn now rents for $3,442
The average price per foot is up to $43.42
average unit size is 993 square feet
4, 2 bedroom apartments were No Fee rentals, versus 131 Fee rentals
Month over month rents held their value
But year over year they are down 0.4%
Having a laundry in the building can add $9 per square foot to the rent last month
Those WITH private outdoor spaces rented for $7 more per square foot
A 2 bedroom with a gym in the building is renting for $100 more per month
Those with full-time lobby attendant are renting for around $1,30 more per month.
There is over a $1,000 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
the average price per foot was at $40 in May
The average unit size is up to 1,273 square foot
2, 3 bedroom rental was No Fee, versus 45 rentals with Fee
Month over month rents are down 5.8%
year over year rents are UP 5.2%
No FEE apartments rented for almost $1,500 more than fee apartments last month.
Those with gyms rented for $12 more per square foot.
Having a laundry in the building can make a $6 difference per rent per square foot
Units with private outdoor space rented for $1,300 more per month in May
Elevator apartments rented for $12 more per square foot last month
Having a full-time lobby attendant made a $3,000 more per month difference 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 many landlords are making concessions to be able to rent faster and even keep rents heading up. Over 40% are leasing with some type of special incentives. The strongest segment of the market last month was existing 2 and 3 bedroom apartments versus new developments and studios.
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!