MNS Real Impact Real Estate

Introduction

Over the last month, prices in Brooklyn have increased by 0.37%, from $2,768.70 to $2,779.00.

A QUICK LOOK

Over the last month, prices in Brooklyn have increased by 0.37%, from $2,768.70 to $2,779.00. This is nearly identical to the change that occurred between April and May, when prices increased by 0.33%, from $2,759.63 to $2,768.70. Between May and June, studio prices have increased by 1.5% or $31.53, from $2,164.25 to $2,195.78. One bedroom prices have decreased by 0.2% or $5.06, from $2,659.20 to $2,654.15. Two bedroom prices have increased by 0.1% or $4.43, from $3,482.66 to $3,487.09. Over the last year, prices have decreased by 1.08% or $30.39. This is almost identical to the change that occurred between May of 2016 and May of 2017, when prices decreased by 1.55% or $43.68. Between June of 2016 and June of 2017, studio prices have decreased by 2.2%, one bedroom prices have decreased by 3.3%, and two bedroom prices have increased by 1.4%.
Over the last month, inventory in Brooklyn have increased by 7.4%, from 5,320 units in May to 5,716 units in June. This is an increase of 396 units, following an increase of 274 units from April to May (from 5,046 units to 5,320 units). Several mid-sized neighborhoods saw healthy inventory increases this month. Brooklyn Heights and Bushwick are examples of this. Brooklyn Heights inventory increased from 224 units to 255 units, which was a 14% or 31 unit increase. Most of this increase occurred in the one and two bedroom sectors, which increased by nine and fourteen units, respectively. 180 Montague Street, which contains 186 units, and 89 Hicks Street, which contains 48 units, had high levels of activity this month and contributed to the inventory increase. Bushwick inventory increased by 13% or 61 units, from 488 units to 549 units. Studio inventory remained exactly the same, but one and two bedroom inventory increased by 37 and 24 units, respectively, due to high levels of activity at 949 Willoughby Avenue, 140 Stanhope Street, and 1487 Broadway.
The highest priced studio, one bedroom unit, and two bedroom unit were in DUMBO this month. Last month, the most expensive studio in DUMBO was $3,010 and this month it was $3,259. The most expensive one bedroom in DUMBO was $4,181 and this month it was $4,139. The most expensive two bedroom in DUMBO was $6,069 and this month it was $6,053. DUMBO is a very low inventory neighborhood in a highly desirable and trendy location. This month, there were only 103 units on the market, and buildings like 220 Water Street and 100 Jay Street were popular. All of the 103 units this month came from only 26 different addresses, and the new developments and conversions such as 220 Water Street are very popular with renters.
The least expensive studio, one bedroom unit, and two bedroom unit were all in Bay Ridge this month, as they were last month. Last month, the least expensive studio in Bay Ridge was $1,394 and this month it was $1,452. The least expensive one bedroom in Bay Ridge was $1,749 and this month it was $1,732. The least expensive two bedroom in Bay Ridge was $2,340 and this month it was $2,284. Bay Ridge proves that the desire to live near Manhattan (and for more and more people, in Brooklyn) is strong enough that people are willing to live further into the borough. In June of 2016, there were 155 units on the market, and one year later, there are 309 units on the market.
The largest studio price change this month occurred in DUMBO, where prices increased by 8% or nearly $250. This is due to low inventory levels as well as high priced units at 220 Water Street. The largest one bedroom price change occurred in PLG, but the one bedroom market was fairly stable this month, and this change was an increase of a mere 3%, or less than $60. The largest two bedroom price change occurred in Cobble Hill, where prices decreased by 5.5% or about $216, after prices increased by nearly the same amount just last month.
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, Cobble Hill, and DUMBO. One and two bedroom sample sizes all had 20 units or more. Smaller sample sizes often result in inflated price movements in average prices.
There have been large inventory increases in Crown Heights. This month, inventory increased by 79 units or 14%, from 561 units to 640 units. Last month, inventory in Crown Heights increased by 8% or 43 units, from 518 units to 561 units. This is due partly to a new development called The Dean at 608 Franklin Avenue, which started renting last month. The healthy increases in inventory in several Brooklyn neighborhoods are an exciting trend to witness and if it persists will have interesting implications on the rental market.

A Quick Look

Where Prices Decreased (Monthly)

Bay Ridge

One-Bedroom -1.0% Two-Bedroom -2.4%

Bed Stuy

One-Bedroom -0.2%

Boerum Hill

Studios -1.8%

Brooklyn Heights

Studios -1.5% One-Bedroom -2.8%

Clinton Hill

Studios -6.0% One-Bedroom -2.1% Two-Bedroom -1.2%

Cobble Hill

Studios -3.5% Two-Bedroom -5.5%

Crown Heights

Studios -0.044%

Dumbo

One-Bedroom -1.0% Two-Bedroom -0.3%

Downtown BK (New)

One-Bedroom -2.79% Two-Bedroom -0.04%

Fort Greene

Studios -0.2% One-Bedroom -0.6% Two-Bedroom -0.2%

Greenpoint

Two-Bedroom -0.1%

Park Slope

One-Bedroom -1.2%

PLG

Two-Bedroom -1.0%

Williamsburg

Two-Bedroom -2.4%

Where Prices Increased (Monthly)

Bay Ridge

Studios 4.2%

Bed Stuy

Studios 4.9% Two-Bedroom 1.5%

Boerum Hill

One-Bedroom 0.79% Two-Bedroom 4.8%

Brooklyn Heights

Two-Bedroom 3.4%

Bushwick

Studios 3.3% One-Bedroom 0.8% Two-Bedroom 0.5%

Cobble Hill

One-Bedroom 3.0%

Crown Heights

One-Bedroom 1.0% Two-Bedroom 4.1%

Dumbo

Studios 8.3%

Downtown BK (New)

Studios 0.18%

Greenpoint

Studios 1.2% One-Bedroom 1.4%

Park Slope

Studios 0.9% Two-Bedroom 0.6%

PLG

Studios 7.9% One-Bedroom 3.0%

Williamsburg

Studios 4.3% One-Bedroom 1.5%