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Brooklyn
Rental Market Report

June 2016

Introduction

Average rents throughout Brooklyn remained stable, moving by only -0.11% from $2,812.38 in May 2016 to $2,809.39 in June 2016.

A QUICK LOOK

The monthly average rent in Brooklyn remained stable, moving by only -0.11% from $2,812.38 in May 2016 to $2,809.39 in June 2016. Since last year, however, average rents increased by 3.67% from $2,710.02. From an inventory standpoint, we saw a 4.09% increase since last from; from 3,695 to 3,846 units on the market. At the time the sample was taken, these following neighborhoods consisted of less than 20 units in the sample size; Studios in Bay Ridge, Boerum Hill, Bushwick, Cobble Hill, Crown Heights, Dumbo, Greenpoint and Prospect Lefferts Gardens
This month, we saw the most inventory on the market from Williamsburg and BedStuy, which made up 21.2% and 15.2% of the total sample analyzed. While an increase in supply often means a decrease in prices, Williamsburg rents remained stable, as the overall average rent increased slightly, from $3,236 in May 2016 to $3,250 in June 2016. BedStuy, however, was slightly affected by the increased supply, with an overall decrease of 3.44%. Annual rents, however, increased by 7.2%.
The largest growth in monthly prices was seen in Prospect Leffetts Gardens (PLG), which increased by 3.55% since last month. PLG also continues to show signs of a strong emerging market, as rents increased by 15% since last year. Crown Heights was, however, the front runner in annual increases, at 17.2%, as we continue to see new construction arise in the area.
Overall, the Brooklyn market continues to show a steady growth, which is expected to continue as we approach peak rental season

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: June 2015 vs. June 2016
Type June 2015 June 2016 Change
Studios $2,128 $2,245 5.49%%
One-bedrooms $2,614 $2,745 5.00%
Two-bedrooms $3,388 $3,439 1.50%

A Quick Look

Where Prices Decreased (Monthly)

Bay Ridge
Studios -7.47% Two-Bedroom -1.64%
Bed Stuy
Studios -5.59% One-Bedroom -4.53% Two-Bedroom -0.78%
Brooklyn Heights
One-Bedroom -3.00% Two-Bedroom -8.59%
Bushwick
One-Bedroom -1.05% Two-Bedroom -1.13%
Clinton Hill
Studios -0.28% Two-Bedroom -1.78%
Cobble Hill
Studios -1.63% Two-Bedroom -0.34%
Crown Heights
One-Bedroom -0.24% Two-Bedroom -2.14%
Dumbo
Two-Bedroom -1.27%
Downtown BK
Studios -1.46% Two-Bedroom -1.69%
Fort Greene
Studios -4.56%
Greenpoint
Studios -6.57% One-Bedroom -0.97% Two-Bedroom -2.70%
Park Slope
Studios -2.37% One-Bedroom -0.47% Two-Bedroom -2.70%
Williamsburg
Two-Bedroom -2.08%

Where Prices Increased (Monthly)

Bay Ridge
One-Bedroom 1.22%
Boerum Hill
Studios 1.58% One-Bedroom 4.99% Two-Bedroom 2.34%
Brooklyn Heights
Studios 7.45%
Bushwick
Studios 3.07%
Clinton Hill
One-Bedroom 2.92%
Cobble Hill
One-Bedroom 0.26%
Crown Heights
Studios 7.67%
Dumbo
Studios 0.98% One-Bedroom 4.93%
Downtown BK
One-Bedroom 1.32%
Fort Greene
One-Bedroom 2.78% Two-Bedroom 7.35%
PLG
Studios 1.01% One-Bedroom 7.39% Two-Bedroom 2.30%
Williamsburg
Studios 2.19% One-Bedroom 1.71%

Neighborhood Price Trends

• While studios saw a large decrease in average rents this month at -7.47%, leading the 2.45% decrease in overall average rents, the annual average rent increased by a substantial 8%, one of the largest increases in the borough.

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

• As inventory increased by 13.37% this month, we saw decreases in average rent across all unit classes, however from an annual perspective, overall average rents increased by 7.2%, indicative of strong rental growth in the area.

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

• Boerum Hill saw increases across all unit classes this month, with an overall average increase of 3.01%.

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

• While studios increased by 7.45% this month as 2 higher priced units from One Brooklyn Bridge Park entered the market, 1 and 2 bedroom units fell by 3.00% and 8.59%, respectively, largely the result of changes in inventory, namely higher priced units exiting the market.
• From an annual perspective, overall average rents increased by 2.8%.

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

• As inventory levels increased by 15.8% since last month, predominately amongst 1 bedroom and 2 bedroom units, we saw slight decreases at -1.05% and -1.13%, respectively. Studios, however, which only made up only 4.4% of the total sample, saw an increase of 3.07% in average rent.
• Since last year, overall average rent increased by 5.4%.

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

• Rents in Clinton Hill remained stable this month, moving by only 0.16%, however since last year, the average rent increased by 3.0%

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

• While average rents too remained stable, at -0.49% change since last month, the annual average rent increased by 10.1%.

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

• Studios in Crown Heights saw the greatest increase this month, at 7.67%, led by higher priced units entering the market and lower priced units exiting.
• The area continues to display strong growth as an emerging neighborhood, as annual rents increased by 17% - the largest growth in the borough.

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

• Average rents remained stable this month, moving by only -0.66%.

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

• Average rents increased slightly by 1.36% since last month and by 6.0% since last year.

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

• While studios saw a decrease of 4.56% in average rents this month, 1 and 2 bedroom units increased by 2.78% and 7.35%, respectively, as several penthouse apartments entered the market.
• Since last year, average rents increased by 7.8%.

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

• As changes to inventory on the market took place, Greenpoint saw slight decreases in average rents, with an overall average decrease of 3.29%.

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

• The overall average rent dipped slightly this month by 1.23%.

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

• All unit classes in Prospect Lefferts Gardens increased this month, with an overall average increase of 3.55%.
• Like Crown Heights, PLG has been displaying strong signs of an emerging market, with annual average rents increasing by 15%.

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

• While the average studio and 1 bedroom rent increased by 2.19% and 1.71%, respectively since last month, 2 bedrooms decreased by 2.08%

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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