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 that despite a lot of negative commentaries out there in the general media, the Brooklyn rental market has kept going strong. Although landlords have been offering a lot of concessions to move units quickly and for top dollar, all year over year stats appear to be positive. Priced and marketed well, rental units have been moving. Perhaps even better than expected during a month which traditionally suffers a seasonal slowdown.
Among the most notable stats over the last month were a 21% plus an increase in new leases being signed. Almost 30% more 1 bedroom leases were signed in October over September 2018. Luxury rental units rented for over 5% more this month. Though more than 50% of new leases included some form of concessions and deals by landlords.
Month over month, Price per square foot rose by 1.5%. Listing inventory fell by another 4.1%, but days on market rose by 42.3% to 37 days on average.
Year over year, rental prices are up an average 0.8% over the same period in 2017. The number of leases being signed rose by over 20%%. Inventory is down over 20%, marketing time has dropped by 2 days. Negotiability and listing discounts are down by 1%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,486
The most expensive leased was: $5,00 per month
The least expensive was: $2,361
The average price per foot is down to $56
average unit size is up to 633 square feet
12 studios were No Fee, and 101 were Fee apartments
Month over month changes saw rents down 2.5%, and price per square foot fell 8.2%
Units with elevators rented for around $500 more 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 almost $700 per month to rents last month.
Units with full-time lobby attendance are renting for around $600 a month more.
Having laundry in the building made almost a $200 difference to rental rates last month.
For 1 bedrooms...
The average rental rate was: $2,882
The most expensive leased was: $5,685
The least expensive was: $2,300
The average price per foot is $50
The average unit size is down to 697 square feet
11, 1-beds were No Fee, versus 131 Fee apartments
Month over month rents are up 4.9%
year over year rents are up 5.9%
No fee 1 bedrooms rented for almost $500 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 $200 less per month
The difference in rents for elevator versus walk-up units is almost $500 per month
Units with gyms rented for $6 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: $3,678
The most expensive leased was: $10,000
The least expensive was: $1,750
The average price per foot is $46
average unit size is 979 square feet
Just 1, 2 bedroom apartment was a No Fee rental, versus 119 Fee rentals
Month over month rents are up 0.4%
Year over year they are up 3.8%
Having laundry in the building added $6 per square foot to the rent last month
Those WITH private outdoor spaces rented for $3 more per square foot
A 2 bedroom with a gym in the building is renting for almost $1,000 more per month
Those with full-time lobby attendant are renting for around $1,600 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: $4,374
The most expensive leased was: $7,750
The least expensive was: $2,300
the average price per foot was at $41 in October
The average unit size is 1,292 square foot
1, 3 bedroom rental was No Fee, versus 34 rentals with Fee
Month over month rents are up 1.6%
year over year rents are down 8%
FEE apartments rented for around $1,000 MORE than no fee apartments last month.
Those with gyms rented for $16 more per square foot.
Having laundry in the building made a $7 difference per square foot last month
Units with private outdoor space rented for $500 more in October 2018
Elevator apartments rented for $10 more per square foot last month
Having a full-time lobby attendant made a $12 per square foot difference
What the break down in this data shows Brooklyn landlords, is that the market is still strong. Probably stronger than many realize. Year over year figures show growth on most data points. 1 and 2 bedroom rental apartments appear to be experiencing the best traction this month.. Positive movements in inventory and marketing time show that well priced and marketed units, with attractive deals, are still leasing within a reasonable period of time.
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!