Nov 16, 2018
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 has kept its gains over the last year. In some ways, it has improved. Though recent data also shows predictable seasonal corrections following the busier summer period. The correlation between listing inventory and concessions suggest that landlords who are competitive and have great marketing can still expect good results in short timeframes.
Among the most notable stats over the last month were the 9.4% increase in studio prices per square foot, and 9.3% increase in 3 bedroom plus rental units by square foot over the same period in 2017. The biggest percentage drops were seen the number of new leases. All unit sizes saw an over 24% drop in new leases signed month over month. 35% fewer 3 bedroom leases were signed last month.
Month over month, Price per square foot fell by 0.2%. Listing inventory fell by 1.9%, and days on market held steady at just 26 days on average.
Year over year, rental prices are up an average 0.2% over the same period in 2017. The number of leases being signed dropped 0.7%. Inventory is down 23.8%, marketing time has dropped by 15 days. Concessions are up 22.8%, negotiability and discounts are down by over 1%.
Now let’s take a look at rentals by unit type:
The average rental rate was: $2,470
The most expensive leased was: $5,600 per month
The least expensive was: $1,850
The average price per foot is up to $58.01
average unit size is down to 594 square feet
22 studios were No Fee, and 110 were Fee apartments
Month over month changes saw rents down 0.5%, and price per square foot rose 3.6%
Units with elevators rented for around $400 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 around $500 per month to rents last month.
Units with full-time lobby attendance are renting for around $700 a month more.
Having a laundry in the building made little difference to rental rates last month.
For 1 bedrooms...
The average rental rate was: $2,728
The most expensive leased was: $6,500
The least expensive was: $2,495
The average price per foot is down by 2%
The average unit size is down to 757 square feet
7, 1 beds were No Fee, versus 106 Fee apartments
Month over month rents are down 4.3%
year over year rents are down 0.5%
No fee 1 bedrooms rented for almost $1,700 more per month.
Having a laundry in the building saw 1 beds renting for $7 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 almost $700 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 rental rate was: $3,479
The most expensive leased was: $7,500
The least expensive was: $2,800
The average price per foot is $43.74
average unit size is 970 square feet
3, 2 bedroom apartments were No Fee rentals, versus 90 Fee rentals
Month over month rents are down 2.1%
Year over year they are up 2.1%
Having a laundry in the building added $7 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 over $1,000 more per month
Those with full-time lobby attendant are renting for around $1,500 more per month.
There is around a $1,200 premium for elevator versus walk-up apartments.
For 3 bedroom apartments
The average rental rate was: $4,246
The most expensive leased was: $9,500
The least expensive was: $5,688
the average price per foot was at $43.19 in September
The average unit size is 1,261 square foot
2, 3 bedroom rental was No Fee, versus 34 rentals with Fee
Month over month rents are down 0.3%
year over year rents are down 3.8%
No FEE apartments rented for around $2,600 MORE than fee apartments last month.
Those with gyms rented for $9 more per square foot.
Having a laundry in the building made a $12 difference per square foot last month
Units with private outdoor space rented for $800 more in September 2018
Elevator apartments rented for $15 more per square foot last month
Having a full-time lobby attendant made a $15 per square foot difference
What the break down in this data shows Brooklyn landlords, is that the market is still strong. Perhaps stronger than many realize. While month over month data shows Brooklyn rentals might have been a little hotter in the summer months, year over year figures show growth. 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!