Brooklyn Rental Market Report | MNS is Real Impact Real Estate

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Brooklyn
Rental Market Report

January 2015

Introduction

Average rents throughout Brooklyn increased by 2.64% from $2,598 in January 2014 to $2,666 in January 2015.

A QUICK LOOK

Rent Prices in Brooklyn decreased by approximately 0.02%- from $2,666.88 in December 2014 to $2,666.26 in January 2015. Rent prices increased by 2.64% from $2,597.77 in January 2014 to $2,666.26 in January 2015. Listing Inventory increased by 5.34% from 3,148 listings units in December 2014 to 3,316 listings Units in January 2015.

The market has picked up since December 2014. The largest percentage increases in rent prices were seen in Studio units in Cobble Hill, Clinton Hill and DUMBO. The largest percentage drop was seen in Studio units in Greenpoint. It is important to note that these neighborhoods had 10 or less studio listings at the time the sample was taken, a minimal number compared to other Brooklyn neighborhoods. As such, large fluctuations in these areas can be viewed as slightly artificial as 1 or so listings leaving/entering the market can highly influence the percentage changes.

The largest annual upward and downward shifts in rent prices were seen in Boerum Hill and Greenpoint. Rent increased by 11.6% in Boerum Hill from an average of $2,673 in January 2014 to $2,983 in January 2015. Greenpoint saw a decrease of 10.0% from $2,904 in January 2014 to $2,615 in January 2015.

Most notable additions to the market were seen in Williamsburg where the 510-unit amenity-rich development at 1 North 4 and the 188-unit rental at the former Meeker Flea Market site on 395 Leonard Street saw various listings enter the market. These additions highly influenced the 18% increase in inventory levels and 3.75% growth in average rental prices, where studios increased by 7.68%, 1 bedrooms remained stable at -0.02% and 2 bedrooms increased by 4.12%.

Notable Trends

Building (Average Prices)
brooklyn quick look studios brooklyn quick look 1 bed brooklyn quick look 2 bed brooklyn quick year over year change
Brooklyn Rents: January 2014 vs. January 2015
  January '14 January '15 Change
Studios $2,012 $2,104 4.58%
One-bedrooms $2,515 $2,545 1.27%
Two-bedrooms $3,267 $3,348 2.49%

A Quick Look

Where Prices Decreased (Monthly)

Bay Ridge
One-Bedroom -1.09%
Bed Stuy
Studios -7.72%, One-Bedroom -0.04%
Boerum Hill
Studios -9.96%, One-Bedroom -0.09%, Two-Bedroom -0.78%
Brooklyn Heights
Studios -2.60%
Bushwick
Studios -4.06%, One-Bedroom -2.69%
Clinton Hill
Two-Bedroom -4.14%
Cobble Hill
One-Bedroom -1.31%
Crown Heights
Studios -3.92%, One-Bedroom -5.99%, Two-Bedroom -0.84%
Dumbo
Two-Bedroom -1.97%
Downtown BK
Studios -1.51%, One-Bedroom -0.32%
Fort Greene
Studios -4.40%
Greenpoint
Studios -18.14%, One-Bedroom -1.87%, Two-Bedroom -0.12%
Park Slope
Studios -3.11%
PLG
Studios -9.42%, Two-Bedroom -3.27%
Williamsburg
One-Bedroom -0.02%

Where Prices Increased (Monthly)

Bay Ridge
Studios 0.60%, Two-Bedroom 4.54%
Bed Stuy
Two-Bedroom 1.24%
Brooklyn Heights
One-Bedroom 0.25%, Two-Bedroom 4.19%
Bushwick
Two-Bedroom 4.03%
Clinton Hill
Studios 10.19%, One-Bedroom 0.78%
Cobble Hill
Studios 11.13%, Two-Bedroom 2.40%
Dumbo
Studios 9.72%, One-Bedroom 1.20%
Downtown BK
Two-Bedroom 0.31%
Fort Greene
One-Bedroom 2.09%, Two-Bedroom 4.28%
Park Slope
One-Bedroom 2.80%, Two-Bedroom 2.40%
PLG
One-Bedroom 0.43%
Williamsburg
Studios 7.68%, Two-Bedroom 4.12%

Neighborhood Price Trends

• Average rent prices increased by 1.76% this month, with Two Bedroom units increasing by 4.54% since December.

bay ridge studio apartment price trends bay ridge one bedroom price trends bay ridge two bedroom price trends

• The overall monthly average rent fell slightly by 1.79%, led by a decline of 7.72% in Studio monthly average rents.

bedford-stuyvesant studio apartment price trends bedford-stuyvesant one bedroom price trends bedford-stuyvesant two bedroom price trends

• Overall rents decreased by 3.39% since December 2014. It is important to note that this neighborhood consistently has a relatively low sample size compared to other areas, particularly in Studios where 1 or 2 higher or lower priced units can drive the overall price movements.

boerum hill studio apartment price trends boerum hill one bedroom price trends boerum hill two bedroom apartment price trends

• Overall monthly average rent increased 1.42%, as the annual average rent increased 0.8%.

brooklyn heights studio apartment price trends brooklyn heights one bedroom price trends brooklyn heights two bedroom price trends

• Average monthly rent for Studio and One Bedroom units decreased 4.06% and 2.69%, respectively while Two Bedroom units increased by 4.03%.

bushwick studio apartment price trends bushwick one bedroom apartment price trends bushwick two bedroom apartment price trends

• The monthly average rent for studio units increased by 10.19%; however, the overall studio sample size consisted of only 8 units, making overall changes relatively sensitive. The overall monthly average rent increased 1.15%.

clinton hill studio apartment price trends clinton hill one bedroom apartment price trends clinton hill two bedroom apartment price trends

• Studios rent in Cobble Hill increased by an immense 11.13% since December 2014. However, the sample size was relatively small consisting of only 2 rental units at 267 Pacific st, again making overall growth for Studios somewhat artificial. More conservatively, One Bedroom units decreased by 1.31% and Two Bedrooms increased by 2.40%.

cobble hill studio apartment trends cobble hill one bedroom apartment price trends cobble hill two bedroom apartment price trends

• Overall monthly rent decreased by 3.38%, with the annual average rent decreasing by 2.2%.

crown heights studio apartment prices crown heights one bedroom apartment prices crown heights two bedroom apartment prices

• Average rents for Downtown Brooklyn remained stable since last month with a -0.36% movement.

downtown brooklyn studio apartment price trends downtown brooklyn one bedroom apartment prices downtown brooklyn two bedroom apartment price trends

• The annual average rent increased by a substantial 9.9% from $3,918.58 in January 2014 to $4,308.27 in January 2015.

dumbo studio apartment price trends dumbo one bedroom apartment prices dumbo two bedroom apartment price trends

• With Studio units decreasing by 4.40%, and One and Two Bedroom units increasing by 2.09% and 4.28% respectively, overall rents increased by 1.26% since last month.

fort greene studio apartment prices fort greene one bedroom apartment price trends fort greene two bedroom apartment prices

• The monthly average studio rent declined 18.14% caused by the higher priced luxury loft at 59 Kent leaving the market. This led the overall monthly average drop of 6.30% and annual average rent decrease of 10%.

greenpoint studio apartment prices greenpoint one bedroom apartment price trends greenpoint two bedroom apartment price trends

• Overall monthly average rent increased slightly by 1.12%, while the annual average rent grew 4.5%.

park slope nyc studio apartment prices park slope one bedroom apartments park slope two bedroom apartment price trends

• The average monthly studio in Prospect Lefferts Garden fell 9.42% as the monthly overall average fell 3.77%. These changes were the result of higher priced units exiting the market and lower priced units entering.

prospect lefferts gardens studio apartment prices prospect lefferts gardens one bedroom apartment price trends prospect lefferts gardens two bedroom apartment prices

• The average monthly rents amongst Studio and Two Bedroom units increased by 7.68% and 4.12%. The inventory for Williamsburg increased 18% from 638 in December 2014 to 754 in January 2015 due to influx of new listings from 1 North 4th and 395 Leonard Street.

williamsburg studio apartment price trends williamsburg one bedroom prices williamsburg two bedroom apartment price trends

The Report Explained

The Brooklyn Rental Market Report™ compares fluctuation in the borough's rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the Brooklyn apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Brooklyn.

The Brooklyn Rental Market Report™ is based on a crosssection of data from available listings and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the MNS proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).

Author: MNS has been helping Brooklyn landlords and renters navigate the rental market since 1999. From large companies to individuals, MNS tailors services to meet your needs. Contact us today to see how we can help.

Contact Us Now: 212.475.9000

Note: All market data is collected and compiled by MNS's marketing department. The information presented here is intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice.

If you would like to republish this report on the web, please be sure to source it as the "Brooklyn Rental Market Report" with a link back to its original location (http://www.mns.com/brooklyn_rental_market_report).

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