Brooklyn Rental Market Report | MNS is Real Impact Real Estate

Brooklyn
Rental Market Report

October 2016

Introduction

Over the last month, prices have decreased by 1.6%, from $2,815.05 to $2,771.52.

A QUICK LOOK

Over the last month, prices have decreased by 1.6%, from $2,815.05 to $2,771.52. This decrease is equal to a $43.53 decrease in prices. Just as the largest change in studio prices was in Crown Heights last month, so it was this month. However, while prices increased by 21% in that sector last month, they decreased by 23.7% this month, so the market can be assumed to have corrected itself. The largest change in one bedroom prices was a 6.5% drop in Bay Ridge prices (low inventory causes high price sensitivity), followed closely by a 6.4% drop in Crown Heights prices and a 6.3% drop in DUMBO prices. The largest change in two bedroom prices occurred in Cobble Hill, where prices decreased by 8.9%, or $364.82. Popular new developments like 213 Columbia Street had a lot of summer rental traffic, and that is expected to slow down at this time of the year.
Williamsburg and Bed-Stuy continue to constitute the largest proportions of the borough’s units month after month. While they made up 20.4% and 14.8% respectively last month, they make up 19.5% and 14% this month. Downtown Brooklyn constituted 9.4% of the units. Besides a 30% inventory decrease in PLG, and a 26% decrease in Bay Ridge (both areas where inventory levels are so small that even small increases or decreases lead to large percentage swings) the largest inventory decrease occurred in Bushwick. Inventory levels dropped from 440 units to 329, or by 25%. As the real estate market adjusts to a slower season, larger than usual inventory drops are expected. For example, smaller buildings like 100 Starr Street saw lots of summer activity, as did new buildings like 49 Cedar Street.
Price changes this month were relatively stable, although not as stable as last month, where excluding one outlier price changes were between +1.5% and -2.8%. This month, excluding one outlier, they fell between -3.6% and +5.9% (decrease in Bushwick prices and increase in Cobble Hill prices). Over the last year, excluding an outlier, price changes range between -8.7% and +8.8% (decrease in Williamsburg prices and increase in Bed-Stuy prices). The former drop is largely attributed to the lease up of the luxury rental building at 1 N 4th Pl, and the latter rise may be attributed to the retail boom along Fulton Street.
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, Clinton Hill, Cobble Hill, DUMBO, Greenpoint, and PLG. One and two bedroom sample sizes all had 20 units or more.
Inventory levels are known to decrease around this time of year, and the winter months will continue to affect the market.

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: October 2015 vs. October 2016
Type October 2015 October 2016 Change
Studios $2,138 $2,222 3.94%
One-bedrooms $2,617 $2,677 2.29%
Two-bedrooms $3,400 $3,415 0.44%

A Quick Look

Where Prices Decreased (Monthly)

Bay Ridge
Studios -3.3% One-Bedroom -6.5% Two-Bedroom -1.4%
Bed Stuy
Studios -4.6% One-Bedroom -0.7%
Boerum Hill
One-Bedroom -3.2% Two-Bedroom -3.4%
Brooklyn Heights
Studios -6.7% One-Bedroom -1.4% Two-Bedroom -1.7%
Bushwick
Studios -4.9% One-Bedroom -4.9% Two-Bedroom -1.3%
Clinton Hill
One-Bedroom -1.7%
Cobble Hill
Studios -4.4% One-Bedroom -2.8% Two-Bedroom -8.9%
Crown Heights
Studios -23.7% One-Bedroom -6.4% Two-Bedroom -4.9%
Dumbo
One-Bedroom -6.3% Two-Bedroom -2.7%
Downtown BK
Studios -2.4% One-Bedroom -0.8% Two-Bedroom -0.4%
Fort Greene
Studios-0.3%
Park Slope
One-Bedroom -1.3%
PLG
Studios -1.5% Two-Bedroom -4.1%

Where Prices Increased (Monthly)

Bed Stuy
Two-Bedroom 1.4%
Boerum Hill
Studios 0.3%
Clinton Hill
Studios 9.9% Two-Bedroom 2.7%
Dumbo
Studios1.5%
Fort Greene
One-Bedroom 1.4% Two-Bedroom 4.2%
Greenpoint
Studios 9.4% One-Bedroom 4.5% Two-Bedroom 2.3%
Park Slope
Studios 0.1% Two-Bedroom 0.1%
PLG
One-Bedroom 2.6%
Williamsburg
Studios 1.1% One-Bedroom 1.3% Two-Bedroom 3.6%

Neighborhood Price Trends

• Prices in Bay Ridge fell across the board this month: studio prices fell by 3.3%, one bedroom prices by 6.5%, and two bedroom prices by 1.4%. This can be partly attributed to a large drop in inventory, which is expected to occur during the changing seasons, from 117 units in September to 86 units in October. Certain buildings such as 125 96th Street and 87-01 Shore Road saw high summer rental activity. The average price drop this month was $66.14 compared to a $32 increase over the last year.

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

• Prices in Bed-Stuy remained stable on average this month, decreasing by 1.1% on average. The largest change was a 4.6% decrease in the price of studios, but this was offset by stable one bedroom and two bedroom prices. Over the last year, Bed-Stuy prices have increased in large numbers across the board: studio prices increased by 21.4%, one bedroom prices increased by 4%, and two bedroom prices increased by 4.9%. Growth along retail corridors like Fulton Street explain this residential boom. Inventory levels are down 17% this month, partly due to popular new buildings such as 31 Brooklyn Avenue being rented out over the summer.

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

• Studio prices in Boerum Hill increased by 0.3%, one bedroom prices decreased by 3.2%, and two bedroom prices decreased by 3.4%. This is equal to an average decrease of $67.83. Over the last year, changes have been comparable, with studio prices increasing by 2.5%, one bedroom prices decreasing by 2.1%, and two bedroom prices decreasing by 4.5%. Inventory levels dropped by 24 units this month, but since the neighborhood inventory count is so low, this represents a large percentage of total inventory levels. Smaller buildings like 96 3rd Avenue rented in September and this drop can be attributed to that activity.

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

• Prices in Brooklyn Heights have dropped across the board this month. Studio prices have decreased by 6.7%, one bedroom prices have decreased by 1.4%, and two bedroom prices have decreased by 1.7%. Over the last year, prices have also decreased, by an average of 1.9%. Inventory levels in Brooklyn Heights dropped by 12.5% (from 160 units to 140 units). One Brooklyn Bridge Park, a popular new development that launched in 2008, had a high amount of rental activity over the summer months.

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

• Prices in Bushwick decreased by 3.6% over the last month, compared to a 4.6% increase over the last year. This yearly change equates to a $95 increase in rental prices. Inventory dropped from 440 units to 329 units, due to high summer activity at new developments like 114 Troutman Street and 49 Cedar Street. bushwick studio apartment price trends bushwick one bedroom apartment price trends bushwick two bedroom apartment price trends

• Studio prices in Clinton Hill saw a 9.9% increase in prices over the last month, compared to relatively minimal changes in the prices of one and two bedroom units. The studio prices increases are partly due to the small inventory of studios in that neighborhood, which increased from 11 to 17 units this month. 299 Vanderbilt Avenue, a small townhouse, is responsible for most of the new studio rentals on the market this month. Inventory levels overall, however, dropped 8%, but this change is to be expected as the market transitions out of high activity summer months.

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

• Studio prices in Cobble Hill decreased by 4.4%, one bedroom prices decreased by 2.8%, and two bedroom prices decreased by 8.9%. Inventory levels in Cobble Hill are so low that these swings can be the difference between one or two units on the market. Over the last month, for example, there were only 3 more units on the market for rent, but this led to a 5% increase in total supply. Studio prices increased by 16.9% over the last year. Large swings like that can be partly attirubted to low inventory levels, but also to developments like The Boerum and 465 Pacific Street.

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

• Prices fell across the board this month, with the largest change being a 23.65% decrease in the price of studios. Affordable units were introduced to the market this month, increasing studio units from 3 units to 20 units, and so the percentage swing is high. New buildings like 500 Sterling Place gaining activity, and 505 Saint Marks Avenue losing activity after the summer months, also contributed to the average monthly price drop of 11.5%. Over the last year, price changes have been less severe, increasing by 4.7%.

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

• Prices in Downtown Brooklyn have remained relatively stable over the last month. Studio prices have decreased by 2.4%, one bedroom prices have decreased by 0.8%, and two bedroom prices have decreased by 0.4%. Over the last year, price changes also remained stable overall, with an average increase of 1.3%. The stability continues when observing the monthly change in inventory, which was +7%, or 22 units.

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

• Over the last year, prices in DUMBO have remained stable, increasing by 2.4%. Studio prices have increased 1.9%, one bedroom prices have also increased by 1.9%, and two bedroom prices have increased by 2.9%. Over the last month, studio prices have increased by 1.5%, one bedroom prices have decreased by 6.3%, and two bedroom prices have decreased by 2.7%, for an average change of -2.9%. Inventory levels, on the other hand, have increased by 17%, from 60 units to 70 units. New inventory at buildings like 70 Washington Street, Gair 2 at 25 Washington Street, and 30 Washington Street can explain price and inventory changes over the last month.

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

• Inventory levels in Fort Greene remained the most stable of any neighborhood in Brooklyn this month, decreasing by 3 units, or 1% of total units. Over the last year, prices have increased across the board in Fort Greene: studio prices have increased by 3.3%, one bedroom prices have increased by 6.6%, and two bedroom prices have increased by 11%. Forte at 230 Ashland Place has contributed to this price increase over the last year. Over the last month, changes were smaller, averaging a 2.1% increase.

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

• Prices have increased in Greenpoint over the last month. Studio prices have increased by 9.4%, one bedroom prices have increased by 4.5%, and two bedroom prices have increased by 2.3%. These increases can be attributed to high activity at 305 McGuiness Boulevard, a new rental building, and 147 Green Street. Also responsible for price increases is a 17% drop in inventory levels, as lower priced rentals have exited the market during the change in seasons. Over the last year, the changes were less severe, averaging 2.3%.

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

• Inventory levels in Park Slope dropped by 8% this month, from 353 units to 324 units. Rental prices have remained very stable over the last month: studio prices increased by 0.1%, one bedroom prices fell by 1.3%, and two bedroom prices increased by 0.1%. Over the last year, changes were also very stable, averaging a 0.2% increase.

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

• Over the last year, prices have increased drastically in PLG. Studio prices increased by 22.7%, one bedroom prices by 18%, and two bedroom prices by 2%. Over the last month, changes were less severe, with studio prices decreasing by 1.5%, one bedroom prices increasing by 2.6%, and two bedroom prices decreasing by 4.1%. Inventory in PLG dropped 30% this month. Some of these changes might be severe but inventory levels in this neighborhood are so low that percentage swings are not too surprising, especially as the market transitions out of summer months. New developments like 23 story tower The Parkline further explain large shifts in price.

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

• Inventory levels dropped by 16% in Williamsburg this month, from 865 units to 727 units. Summer activity at new developments like 65 Ainslie and Warehouse 11 can explain this decrease in inventory. Prices over the last month, however, have remained stable, with studio prices increasing by 1.1%, one bedroom prices increasing by 1.3%, and two bedroom prices increasing by 3.6%. Over the last year, prices have dropped by an average of 8.7%, largely due to the lease up of the luxury rental building at 1 N 4th Pl.

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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