Brooklyn apartment market is growing, new real estate report finds
Green Point. Archive photo of the eagle by Paul Frangipane
The recovery in New York’s rental real estate market is gaining momentum, particularly in Brooklyn, according to StreetEasy’s July Market Report.
The rapid rise in rents can be attributed in part to the surge in demand this summer, according to the report.
“New Yorkers who left town during the pandemic began to return, while those who stayed modernized or moved again to avoid rent increases on their lease. And many people who had always wanted to live in New York City decided that with unusually low prices this summer, now is the right time, ”said StreetEasy, a well-known online real estate platform.
Parts of Brooklyn are seeing a rapid recovery in rental prices, according to the report. Neighborhoods such as Bedford-Stuyvesant, Greenpoint and Downtown Brooklyn all had median asking rent prices that were higher in July 2021 than they were before the start of the pandemic.
Citywide, rent discounts (lower rents or incentives like a free month’s rent) are the rarest in Brooklyn, according to the report released Thursday. This reflects a strong demand for apartments in Brooklyn.
Of all the neighborhoods in Brooklyn, Greenpoint appears to be the “hottest.”
Rents at Greenpoint have increased the most year over year, StreetEasy said. “The median asking rent in the neighborhood has reached a record high of $ 3,395, $ 80 more than the previous record high in August 2019.”
The emphasis on Greenpoint is nothing new. In 2020, the same StreetEasy platform ranked Greenpoint as the “neighborhood to watch” for the year. And the neighborhood saw a 67% increase in online searches on StreetEasy from 2019 to 2020.
Across the borough, the median asking rent in Brooklyn last July rose to $ 2,600, approaching pre-pandemic highs of around $ 2,700 seen in the summer of 2019.
Overall, the number of rentals available in Brooklyn fell to 17,411 in July, a 33% drop from peak inventory supply in August 2020, according to the July report. This was consistently higher than the amount of inventory available in July 2019, when 15,437 rentals were on the market.
Across the borough, only 8.7% of rentals were discounted in July. This is the lowest share of all the boroughs analyzed, and significantly lower than that of last August, when the share of discounts peaked at 26%. As of July 2020, 24% of rentals in Brooklyn were discounted.
Across the city, only 9.1% of rentals were discounted, a significant drop of 20 percentage points from last year.
In July 2019, during a typical summer rental season, 15.6% of rentals were reduced. So this year’s 9.1 percent figure is the lowest in a decade.
Popular neighborhoods in Manhattan include Flatiron, the East Village, the Financial District and Nolita, according to the report.
“I expect rental price growth to continue, but not at such a rapid rate,” said Nancy Wu, economist at StreetEasy. “Renters started to come back to the market with a bang this summer and landlords have taken notice. They are trying to make up for the time and money they lost during the pandemic lull by raising prices and wiping out discounts. “
In neighboring Brooklyn, Queens, the number of rental apartments available remains high, according to the report.
“Queens rental inventory has remained relatively high compared to Manhattan and Brooklyn. There were 6,266 rentals available in the borough in July, down 21% from the peak inventory reached in October 2020, ”StreetEasy said.
Rents in some of Queens more expensive neighborhoods are rising rapidly, but still have not reached their pre-pandemic levels.