Feb 6, 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…
The data shows overall the Brooklyn rental market was tough for landlords in November 2018. Although much of this may be typical seasonal softness, almost every data point was in negative territory in November on a month over month basis. Though it is important to point out that this does follow a stronger than expected October, and there are some year over year improvements.
Among the most notable stats over the last month were a 30% plus decline in new leases being signed in every size of the apartment. That was led by an almost 40% decrease in 3 bedroom leases. However, on an annual basis, 2 bedroom leases were still up 9%. With the median rental price on studios rising almost 9% as well.
Month over month, Price per square foot fell by 4.8%. Listing inventory fell by another 2.6%, but days on market fell as well, by 27% to just 27 days on average.
Year over year, rental prices are up an average of 2.2% over the same period in 2017. The number of leases being signed fell by 3.5%. Inventory is down by 20%, marketing time has dropped by 16 days. Negotiability and listing discounts are down by 0.6%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,906
The most expensive leased was: $30,000 per month
The least expensive was: $1,250
The average price per foot is down to $53
average unit size is up to 824 square feet
12 studios were No Fee, and 69 were Fee apartments
Month over month changes saw rents up 3.5%, and price per square foot up by 1.2%
Units with elevators rented for around $800 more per month more than walk-up units last month.
While gyms are still an in-demand amenity, those without gyms actually rented for $10 more per square foot in November.
Units with full-time lobby attendance actually rented for around $400 LESS per month more.
Having laundry in the building didn’t add any benefit to rental rates last month.
For 1 bedrooms...
The average rental rate was: $2,907
The most expensive leased was: $4,850
The least expensive was: $1,250
The average price per foot is down to $47
The average unit size is up to 751 square feet
8, 1-beds were No Fee, versus 80 Fee apartments
Month over month rents are down 2.1%
year over year rents are up 4.1%
No fee 1 bedrooms rented for almost $600 more per month.
Having laundry in the building saw 1-beds renting for $6 more per square foot
Units with NO private outdoor space are renting for around $100 less per month
The difference in rents for elevator versus walk-up units is almost $500 per month
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 rental rate was: $3,788
The most expensive leased was: $8,500
The least expensive was: $1,600
Average price per foot is $44
average unit size is 1,030 square feet
Just 1, 2 bedroom apartment was a No Fee rental, versus 96 Fee rentals
Month over month rents are down 0.7%
Year over year they are up 2.8%
Having a laundry in the building 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 over $1,500 more per month
Those with full time lobby attendant are renting for around $1,600 more per month.
There is around a $500 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $4,250
The most expensive leased was: $9,800
The least expensive was: $1,800
The average price per foot was at $40 in November
The average unit size is 1,256 square foot
Month over month rents are down 1.5%
year over year rents are up 1.8%
Those with gyms rented for $11 more per square foot.
Having a laundry in the building made a $5 difference per square foot last month
Units WITHOUT private outdoor space rented for almost $1,000 less in November 2018
Elevator apartments rented for $2 more per square foot last month
Having a full time lobby attendant made a $8 per square foot difference
On the surface, month over month data looks like a disastrous month for Brooklyn landlords. Yet, year over year, the market is actually performing quite well. Those that refuse to be distracted or panicked by short term ticker type media, and keep their eye on the big picture can still do well. It’s all about long term leasing and asset management strategy, as well as smart marketing.
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 hangout, 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!