MNS is proud to present our second annual Year End Report for Brooklyn, the summation of a year's worth of data collected from our monthly Brooklyn Rental Market Reports. We hope you find these pages useful in determining the rental trends of Brooklyn's major neighborhoods, as well as the overall climate of the Brooklyn rental market during the course of 2012.
What a year it has been for the Brooklyn real estate market. Neighborhoods such as Williamsburg and DUMBO surpassed Manhattan rents forcing renters to move out of Brooklyn and into the city. The opening of the Barclays Center and the Atlantic Yards development have definitely assisted in bringing Brooklyn rents to all time highs. Yearly average rents were $1,812 for studios, $2,400 for one-bedrooms, and $3,065 for two-bedrooms. Average increase from 2011 was 8.6%.
Inventory dropped in the fourth quarter of 2012, most notably was the lack of inventory for studio apartments. Studios were very tough to come by in certain neighborhoods such as Bay Ridge, Cobble Hill, Bushwick, and Prospect-Lefferts Gardens. Out of the fourteen neighborhoods MNS currently tracks in Brooklyn, studios prices rose 7.0% from 2011, and 11.4% from 2010. The month with the highest average for studios was December, average price was $1,976.
As rents rose again over the course of this past year, we are looking forward to a vibrant year in 2013. More inventory will be coming to market throughout Brooklyn as developers are looking to bring the same luxury apartments and amenities over the bridge and into Brooklyn. MNS is currently tracking over 1,200 units coming to market in 2013 in Downtown Brooklyn. With new developments coming to Downtown Brooklyn, this area should continue to see growth in both the residential and retail sector.
This past year saw some amazing changes in Brooklyn from the opening of the Barcalys Center to new residential developments springing up all throughout the city. Brooklyn is definitely on the map, and 2012 proved this point as noted above with the 8.6% increase in rents. Some areas such as Fort Freene and Greenpoint are becoming more popular as renters are finding these areas more economical to live in. From a year ago, rents in Fort Greene and Greenpoint both rose an average of 22%. These neighborhoods are just an example of what we are seeing in Brooklyn as other areas also displayed high yearly average increases.
As we begin 2013, MNS will continue to track the trends in Brooklyn. This is a very exciting time for this city, and we are anticipating another great year.
On the Up and Up: This year, the rents were up 8.6% which is up 2% from the average growth rate from 2011 to 2010. From 2010, rents are up an average of 16%. Breaking the numbers down from 2011, studios are up 7% from $1,693 to $1,812, one-bedrooms are up 8.5% from $2,211 to $2,400, and two-bedrooms are up 10.3% from $2,778 to $3,065. Average price for a two bedroom broke the $3,000 threshold this year. From 2010, one-bedroom units had the highest increase at 18.9%, up $382.
Two Bedroom Unit Pricing: Once again two bedrooms posed the largest increase on a yearly basis. This is exactly what we saw in Manhattan as two bedrooms had the highest increase as well, up 9.6%. On a percentage basis, Brooklyn had a slightly larger increase for two-bedrooms, a .7% difference. On an annual dollar basis, Manhattan two-bedrooms rose by $378, this was $91 higher than the Brooklyn two bedroom increase. The top three areas with the highest two bedroom rents are as follows: Dumbo: $4,985, Brooklyn Heights: $4,715, and Williamsburg: $4,002.
Inventory Assessment: MNS is tracking more than 1,500 units coming to market in 2013. Most of the inventory will be in Downtown Brooklyn and Williamsburg. The inventory pipeline is expected to continue to rise as we see more development and growth in Brooklyn.
*Average price changes were obtained by calculating the percentage of change between the average asking rents at the start of 2012 (January) and at the end of 2012 (December)
The Brooklyn Rental Market Report ™ is the only report that compares fluctuation in the city's rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC 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 data crosssectioned from over 10,000 currently 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).
TABLE OF CONTENTS
- Notable Trends
- Mean Brooklyn Rental Prices
- Brooklyn Price Trends
- Neighborhood Price Trends
- The Report Explained
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