MNS Real Impact Real Estate

Introduction

After declining in November and December 2013, average rents in Brooklyn increased 1.62% in January to $2,587 from $2,629.

Each unit type rebounded with positive gains since December: Studio (+1.37%), One-Bedroom (+1.25%), Two-Bedroom (+0.92%). Similarly, since this time last year rents across Brooklyn rose 4.02%.

A QUICK LOOK

After declining in November and December 2013, average rents in Brooklyn increased 1.62% in January to $2,587 from $2,629 in December. Each unit type rebounded with positive gains since December: Studio (+1.37%), One-Bedroom (+1.25%), Two-Bedroom (+0.92%). Similarly, since this time last year rents across Brooklyn rose 4.02%.
Several neighborhoods throughout the borough experienced marked increases in January. Overall rents in Bushwick increased 1.76% since the previous month. This upturn was led by consistent demand for Two-Bedrooms throughout the neighborhood, pushing prices up 5.6% from $2,283 to $2,160 since last month. After reaching a 13-month high in September pricing for One-Bedrooms in Cobble Hill dropped for three consecutive months. This trend was reversed in January as pricing for this unit rose 7.1% to $2,625, the largest month over month increase of any unit type in Brooklyn. On a similar note, Two-Bedrooms in Crown Heights rebounded in January after decreasing in price for the past four consecutive months. Rents for this unit increased 5.3% since December to $2,345, up from $2,227. While listing inventory remained fixed from the previous month, a number of Two-Bedrooms from newer developments on Bergen Street caused for a rebound in pricing in this neighborhood.
The largest month-over-month gain by volume was in Downtown Brooklyn as each unit type offered positive returns throughout January. Pricing for Studios (+2.0%), One-Bedrooms (+4.5%) and Two-Bedrooms (+2.3%) each increased since the previous month. Lastly, each unit type in Fort Greene offered positive returns throughout January as pricing for Studios (+5.6%), One-Bedrooms (+2.1%) and Two-Bedrooms (+1.8%) increased since the previous month. This marks the fifth consecutive month that overall rents in Fort Greene increased. Availability for each unit type in this neighborhood has consistently decreased and caused prices to rise each month.
On a year-over-year basis it is important to note that low inventory coupled with a number of higher priced, oversized units, which came to market during January 2013, contributed to inflated prices in the following neighborhoods: Boerum Hill, Brooklyn Heights, Clinton Hill, DUMBO, Park Slope (Two- Bedrooms) and Fort Greene, Prospect-Lefferts Gardens (One-Bedrooms). Consequently year-over-year fluctuations in these areas will be higher than normal for these particular unit types.

A Quick Look

Where Prices Decreased

Bed Stuy

Studios -2.1%, One-Bedroom -0.3%, Two-Bedroom -1.5%

Boerum Hill

Studios -1.0%, One-Bedroom -1.2%

Brooklyn Heights

One-Bedroom -4.0%, Two-Bedroom -1.7%

Bushwick

Studios -1.7%

Clinton Hill

Studios -5.8%

Cobble Hill

Studios -0.6%

Crown Heights

One-Bedroom -0.6%

Dumbo

Studios -8.6%, Two-Bedroom -2.3%

Greenpoint

Studios -3.5%

Park Slope

Studios -3.2%, Two-Bedroom -5.4%

PLG

Studios -4.1%, One-Bedroom -2.3%

Williamsburg

Studios -2.2%, One-Bedroom -4.3%, Two-Bedroom -0.2%

Where Prices Increased

Bay Ridge

One-Bedroom 8.8%, Two-Bedroom 2.9%

Boerum Hill

Two-Bedroom 1.9%

Brooklyn Heights

Studios 1.9%

Bushwick

One-Bedroom 0.8%, Two-Bedroom5.6%

Clinton Hill

One-Bedroom 2.9%, Two-Bedroom 2.5%

Cobble Hill

One-Bedroom 7.1%, Two-Bedroom1.5%

Crown Heights

Studios 5.9%, Two-Bedroom 5.3%

Dumbo

One-Bedroom 2.9%

Downtown BK

Studios 2.0%, One-Bedroom 4.5%, Two-Bedroom 2.3%

Fort Greene

Studios 5.6%, One-Bedroom 2.1%, Two-Bedroom 1.8%

Greenpoint

One-Bedroom 3.5%, Two-Bedroom 1.9%

Park Slope

One-Bedroom 1.1%

PLG

Two-Bedroom 7.6%