Solo Apartment Hunters Sending Rents For Studios To All-Time Highs
Not long ago, the price of one- and two- bedroom apartments in Brooklyn rose while studios lagged behind.
Now smaller units across the borough – which has seen some of the highest demand for new development in the city – are red hot.
In its latest market report, the brokerage firm MNS calculated that studio prices in Brooklyn jumped by 2.3 percent over the past month alone, compared to a one percent increase for one- and two- bedrooms. In Park Slope, prices shot up by 5.6 percent.
MNS founder Andrew Barrocas attributes the rising demand to general societal shifts. “More people in their late 20’s and early 30’s are still single, as oppose to five to 10 years ago, when people in this demographic were married with kids,” Barrocas explained.
Because they don’t have families of their own, even some of the most financially successful Gen Yers are in search of studios rather than sprawling apartments, in Williamsburg, Downtown Brooklyn, and other trendy neighborhoods with recently constructed condos and rentals. “When marketing smaller units, we see renters come in that are extremely qualified,” Barrocas said.
Less affluent apartment hunters – the artists and writers, for instance, who are drawn to Brooklyn’s cultural scene – often receive help from mom and dad. Not long ago, parents might have insisted on purchasing a studio in Manhattan, to benefit from the strong market there. Now, real estate in Brooklyn is considered a solid investment in its own right.
Over the next 20 years, according to Barrocas, the borough’s population is slated to double in size, with developers expected to build a million new units. “[Parents] look at the figures and say, ‘Wow, this is an incredible area,” he said.
Investment activity in Brooklyn isn’t limited to generous family members, of course. “We’re starting to see investors buying smaller units and renting them out, because rental rates are skyrocketing,” said Barrocas.Categories: Blogs · Magazine · Newspaper · Rental Market Report