MNS Real Impact Real Estate

Introduction

Over the last month, the average rental price in Brooklyn decreased by 1.18%, from $2,877.11 to $2,843.25.

A QUICK LOOK

Over the last month, the average rental price in Brooklyn decreased by 1.18%, from $2,877.11 to $2,843.25. The average rental price for a studio unit decreased by 0.9%, from $2,275.11 to $2,253.98. The average rental price for a one-bedroom unit decreased by 0.02%, from $2,701.84 to $2,701.25. The average rental price for a two-bedroom unit decreased by 2.0%, from $3,587.06 to $3,514.89. Year-over-year, studio rental prices are up 2.19%, while one and two-bedroom prices are up 2.33% and 3.07%, respectively. Overall, the average rental price in Brooklyn is up 3.32% from this time last year.

As is typical for this time of the year, most analyzed neighborhoods experienced price drops, except for: Brooklyn Heights (+1.7%), DUMBO (+4.0%), Greenpoint (+0.6%), and Park Slope (+1.2%). Out of all tracked unit types, one-bedroom units performed the best on a month-over- month and per neighborhood basis, with prices increasing in: Brooklyn Heights (+5.1%), Clinton Hill (+0.3%), DUMBO (+5.4%), Fort Greene (+1.9%), Park Slope (+3.8%), and Williamsburg (+0.2%). During October, the most expensive rentals by average price were in DUMBO, while the least expensive rentals by average price were all in Bay Ridge.

Year-over-year, only three out of fifteen analyzed neighborhoods experienced price drops; Crown Heights (-1.56%), Boerum Hill (-5.45%), and Williamsburg (-5.87%). The drops in both Boerum Hill and Crown Heights can be attributed to an increase in concessions offered at new developments along with an influx of lower-priced inventory. The price drop in Williamsburg, however, can be credited to the impending L-train shutdown, which is having a negative, albeit temporary, effect on both residential and commercial rental prices in the area. Out of the neighborhoods that experienced year-over-year price gains, Prospect Lefferts Gardens stands out. Neighborhoods like Fort Greene (+9.15%) and DUMBO (+14.06%) saw their average rents grow thanks to an increase in listings from new developments along with their plentiful transportation options. Prospect Lefferts Gardens, which consistently ranks as one of the least expensive Brooklyn neighborhoods to rent in, became a destination for frugal renters looking for the next affordable area. This flood of renters along with a decrease in overall supply, led to an impressive 7.60% year-over-year average rental price increase in the neighborhood.

Notable Trends

Brooklyn Rents: October 2017 vs. October 2018

A Quick Look

Where Prices Decreased (Monthly)

Where Prices Increased (Monthly)