Brooklyn Rental Market Report October 2014 mns.com

Transcription

1 Brooklyn Rental Market Report October 2014

2 TABLE OF CONTENTS 03 Introduction 04 A Quick Look 05 Mean Brooklyn Rental Prices 10 Brooklyn Price Trends 11 Neighborhood Price Trends 11 Bay Ridge 12 Bedford-Stuyvesant 13 Boerum Hill 14 Brooklyn Heights 15 Bushwick 16 Clinton Hill 17 Cobble Hill 18 Crown Heights 19 Downtown Brooklyn 20 Dumbo 21 Fort Greene 22 Greenpoint 23 Park Slope 24 Prospect-Lefferts Gardens 25 Williamsburg 26 The Report Explained MNS Brooklyn Rental Market Report October 2014 page 2

3 INTRODUCTION Average rents throughout Brooklyn decreased from $2, in October 2013 to $2, in October MNS Brooklyn Rental Market Report October 2014 page 3

4 A QUICK LOOK Rent prices in Brooklyn decreased by approximately 0.33% from $2,703 in September 2014 to $2,694 in October Rent prices decreased 0.2% from $2,698 to $2,694 compared to October Listing inventory decreased 6% compared to September 2014 from 2,527 units to 2,379 units. The market appears to have slowed down slightly compared to September The largest percentage increases in rent prices (among material sample sizes) were seen in Studios in Bedford-Stuyvesant and Two Bedroom units in Dumbo. The largest percentage decreases were seen in Studio units in Prospect-Lefferts Gardens and Brooklyn Heights. The largest annual upward and downward shifts in rent prices (among material sample sizes) were seen in Bay Ridge and Williamsburg respectively. Rents increased 9.3% in Bay Ridge compared to October 2013 from $1,615 to $1,766. Rents decreased by 9.5% in Williamsburg from $3,497 to $3,167. Despite the slight downturn in both monthly and yearly overall average rents for Brooklyn several key trends still exist. Most notably, neighborhoods such as Bedford- Stuyvesant and Bushwick remain at the forefront of the gentrification movement. New, amenity-rich developments such as Colony 1209 at 1209 DeKalb Avenue and The Brownstone at 196 Macon Street characterize the type of construction taking place in these areas. In addition, neighborhoods that have already experienced considerable growth in the last decade, such as Fort Greene, are seeing high-end rental vacancies hitting the market again driving up average rents. This is evident as several units in DKLB BKLN at 80 DeKalb Avenue and Avalon Fort Greene at 343 Gold Street have reentered the market. Finally, Williamsburg continues to undergo a slight, but steady, month-to-month decline and perhaps more notably experienced a 9.5% decrease in prices compared to last year at this time. This is indicative of the maturation of this neighborhood as developers seek less saturated and more cost-effective alternatives elsewhere in Brooklyn that also provide high accessibly to public transportation. As with recent months, most of the neighborhoods in Brooklyn are experiencing a positive year-over-year change. However, overall monthly changes have varied more widely. This can be expected to continue as many more new developments and conversions enter the market in the months to come. Notable Trends Building (Average Prices) Type Most Expensive Least Expensive Studios DUMBO $ 3,641 Bay Ridge $ 1,389 One-Bedrooms DUMBO $ 3,822 Bay Ridge $ 1,606 Two-Bedrooms DUMBO $ 5,974 PLG $ 2,163 MNS Brooklyn Rental Market Report October 2014 page 4

5 A QUICK LOOK STUDIOS Average Unit Prices By Neighborhood Greatest Changes Since September Clinton Hill $2,105 Fort Greene $2,340 Downtown Brooklyn $2,448 DUMBO $3,641 Brooklyn Heights $2,232 Cobble Hill $1,886 Boerum Hill $2,360 $2,500 Greenpoint $2,651 Williamsburg $1,775 Bushwick $1,693 Bed-Stuy 13.19% ($207) BUSHWICK STUDIO PRICES Park Slope $2,179 $1,711 Crown Heights $1,445 Prospect Lefferts Gardens Days on Market High Low $1,389 Bay Ridge DAYS DAYS DUMBO Bed Stuy Market Inventory High Low Average Price Brooklyn Studios $ 2, Williamsburg Greenpoint MNS Brooklyn Rental Market Report October 2014 page 5

6 A QUICK LOOK 1 BEDS Average Unit Prices By Neighborhood Greatest Changes Since September Clinton Hill $2,698 Fort Greene $2,924 Downtown Brooklyn $3,135 DUMBO $3,822 Brooklyn Heights $3,004 Cobble Hill $3,091 Boerum Hill $2,700 $2,462 Greenpoint $3,103 Williamsburg $2,119 Bushwick $1,865 Bed-Stuy 6.48% ($103) PLG 1 BED PRICES Park Slope $2,539 $1,606 Bay Ridge $1,926 Crown Heights $1,699 Prospect Lefferts Gardens Days on Market High Low DAYS DAYS DUMBO PLG Market Inventory High Low Average Price Brooklyn 1 Beds $ 2, Park Slope Cobble Hill MNS Brooklyn Rental Market Report October 2014 page 6

7 A QUICK LOOK 2 BEDS Average Unit Prices By Neighborhood Greatest Changes Since September Clinton Hill $3,146 Fort Greene $3,659 Downtown Brooklyn $4,361 DUMBO $5,974 Brooklyn Heights $4,258 Cobble Hill $3,816 Boerum Hill $3,723 $2,993 Greenpoint $3,746 Williamsburg $2,292 Bushwick $2,242 Bed-Stuy 7.37% (-$339) BK HEIGHTS 2 BED PRICES Park Slope $3,196 $2,303 Bay Ridge $2,296 Crown Heights $2,164 Prospect Lefferts Gardens Days on Market High Low DAYS DAYS Downtown Brooklyn Crown Heights Market Inventory High Low Average Price Brooklyn Studios $ 3, Williamsburg Brooklyn Heights MNS Brooklyn Rental Market Report October 2014 page 7

8 A QUICK LOOK Year Over Year Price Change By Neighborhood Clinton Hill -11.7% Greenpoint > 10% Change 5.5% - 10% Change 4.0% - 5.4% Change < 4.0% Change Downtown Brooklyn DUMBO Brooklyn Heights Cobble Hill Fort Greene -9.5% Williamsburg 4.6% -2.6% 5.4% Bushwick -9.1% 5.0% 6.0 % 0.5% -0.6% 5.8% Bed-Stuy Boerum Hill Park Slope -4.0% 4.2% Crown Heights 3.1% Prospect Lefferts Gardens 9.4% Bay Ridge Brooklyn Rents: October 2013 vs.october 2014 Type September 2013 September 2014 Change Studios $ 2,082 $ 2, % One-Bedrooms $ 2,574 $ 2, % Two-Bedrooms $ 3,439 $ 3, % MNS Brooklyn Rental Market Report October 2014 page 8

9 A QUICK LOOK Where Prices Decreased (monthly) Boerum Hill One-Bedroom -1.66% Brooklyn Heights Studios -9.07% One-Bedroom -1.83% Two-Bedroom -7.37% Bushwick Two-Bedroom -0.17% Clinton Hill Studios -4.37% Crown Heights Studios -7.34% One-Bedroom -2.74% Two-Bedroom -5.11% Dumbo Studios -3.60% One-Bedroom -1.46% Downtown BK Studios -1.87% One-Bedroom -1.99% Two-Bedroom -3.75% Park Slope One-Bedroom -2.83% Two-Bedroom -1.79% PLG Studios -9.69% Williamsburg One-Bedroom -5.46% Two-Bedroom -0.70% Cobble Hill Studios -6.30% Greenpoint Studios -8.58% One-Bedroom -5.61% Where Prices Increased (monthly) Bay Ridge Studios 4.55% One-Bedroom 2.95% Two-Bedroom 4.13% Bed Stuy Studios 10.66% One-Bedroom 0.40% Two-Bedroom 0.70% Boerum Hill Studios 3.93% Two-Bedroom 0.07% Bushwick Studios 13.19% One-Bedroom 2.49% Clinton Hill One-Bedroom 3.83% Two-Bedroom 2.95% Cobble Hill One-Bedroom 4.09% Two-Bedroom 1.49% Dumbo Two-Bedroom 6.50% Fort Greene Studios 1.67% One-Bedroom 5.30% Two-Bedroom 4.69% Greenpoint Two-Bedroom 1.54% Park Slope Studios 2.50% PLG One-Bedroom 6.48% Two-Bedroom 1.93% Williamsburg Studios3.63% MNS Brooklyn Rental Market Report October 2014 page 9

10 BROOKLYN PRICE TRENDS 2,300 2,225 2,150 2,075 2,000 2,082 2,061 2,041 2,012 2,030 2,030 2,129 2,164 2,240 2,113 2,230 2,187 2,157 2,700 2,625 2,550 2,475 2,400 2,574 2,485 2,484 2,515 2,527 2,544 2,566 2,624 2,583 2,597 2,653 2,586 2,580 3,500 3,425 3,350 3,275 3,200 3,439 3,304 3,237 3,267 3,335 3,331 3,297 3,362 3,400 3,301 3,342 3,335 3,345 MNS Brooklyn Rental Market Report October 2014 page 10

11 BAY RIDGE Although average rent prices rose by 3.88% this month, the more important trend is the 9.3% yearly increase in prices which was the highest in the borough. 1,900 1,688 1,475 1,263 1,050 1,157 1,259 1,212 1,212 1,225 1,200 1,723 1,853 1,850 1,531 1,389 1,329 1,389 1,700 1,563 1,425 1,288 1,150 Oct Nov Dec Jan Feb Mar Apr May Jul Aug Sep Oct 1,524 1,538 1,549 1,685 1,625 1,587 1,525 1,548 1,504 1,563 1,560 1,606 2,400 2,300 2,200 2,100 2,000 2,165 2,172 2,127 2,189 2,156 2,137 2,014 2,200 2,293 2,071 2,200 2,212 2,303 MNS Brooklyn Rental Market Report October 2014 page 11

12 BEDFORD-STUYVESANT Driven by a significant 10.66% increase in Studio prices, overall average monthly rents increased 3.32%. This was due to high-end units at 689 Myrtle Avenue and 357 Decatur Street entering the market 2,100 1,800 1,500 1, ,617 1,600 1,670 1,634 1,646 1,650 2,005 1,890 1,930 1,430 1,671 1,530 1,693 2,000 1,825 1,650 1,475 1,300 1,967 1,847 1,781 1,775 1,752 1,841 1,937 1,948 1,932 1,880 1,994 1,857 1,865 2,400 2,163 1,925 1,688 1,450 2,189 2,057 2,116 2,084 2,120 2,186 2,317 2,218 2,291 2,306 2,262 2,227 2,242 MNS Brooklyn Rental Market Report October 2014 page 12

13 BOERUM HILL This neighborhood remained stable this month increasing by a trivial 0.53%, however it should be noted that the Studio sample size consisted of only 3 units. 2,700 2,400 2,100 1,800 1,500 2,100 2,195 1,995 1,975 1,992 2,050 2,691 2,385 2,253 2,179 1,919 2,271 2,360 2,900 2,675 2,450 2,225 2,000 2,485 2,586 2,555 2,525 2,440 2,479 2,796 2,854 2,748 2,540 2,625 2,745 2,700 3,900 3,675 3,450 3,225 3,000 3,716 3,547 3,453 3,519 3,688 3,695 3,592 3,473 3,595 3,601 3,812 3,721 3,723 MNS Brooklyn Rental Market Report October 2014 page 13

14 BROOKLYN HEIGHTS All unit types saw a decline in monthly average rents, leading to the greatest overall decrease among Brooklyn neighborhoods of 6.11%. 2,600 2,375 2,150 1,925 1,700 2,529 2,356 2,147 2,188 2,226 2,275 2,178 2,246 2,180 2,232 2,199 2,454 2,232 3,400 3,150 2,900 2,650 2,400 3,141 3,131 3,130 3,005 3,112 3,167 3,101 3,139 2,996 3,373 3,097 3,060 3,004 4,900 4,550 4,200 3,850 3,500 4,770 4,678 4,556 4,478 4,715 4,678 4,623 4,681 4,691 4,813 4,437 4,597 4,258 MNS Brooklyn Rental Market Report October 2014 page 14

15 BUSHWICK Due to a low sample size, this neighborhood s 13.19% rise in Studio prices distorts the overall average rent increase of 4.29%. 2,300 2,000 1,700 1,400 1,100 1,798 1,865 1,865 1,833 1,800 1,738 2,093 1,953 2,083 1,930 2,300 1,568 1,775 2,700 2,350 2,000 1,650 1,300 2,200 2,162 1,990 2,005 2,087 2,009 1,994 2,130 1,964 2,040 2,647 2,068 2,119 2,600 2,325 2,050 1,775 1,500 2,353 2,272 2,161 2,283 2,173 2,183 2,185 2,332 2,324 2,372 2,510 2,296 2,292 MNS Brooklyn Rental Market Report October 2014 page 15

16 CLINTON HILL While this neighborhood experienced a considerable 6.0% upturn in yearly average rents, monthly average rents only increased by 1.19%. 2,300 2,050 1,800 1,550 1,300 2,116 2,025 1,958 1,844 1,883 1,924 1,945 1,949 2,022 1,938 1,874 2,201 2,105 2,700 2,500 2,300 2,100 1,900 2,348 2,374 2,264 2,330 2,360 2,379 2,428 2,648 2,656 2,568 2,581 2,599 2,698 3,300 2,975 2,650 2,325 2,000 3,037 3,107 3,067 3,145 3,245 3,157 3,090 3,220 3,129 3,051 3,088 3,056 3,146 MNS Brooklyn Rental Market Report October 2014 page 16

17 COBBLE HILL Overall yearly and monthly average rent changes for this neighborhood remained steady as percentage changes fell between the -1.0% and 1.0% range. 2,400 2,213 2,025 1,838 1,650 1,988 1,938 2,038 2,025 2,085 2,014 2,000 1,958 2,300 2,304 2,202 2,013 1,886 3,300 2,975 2,650 2,325 2,000 2,705 2,562 2,450 2,625 2,805 2,812 2,769 3,051 2,847 3,258 3,007 2,970 3,091 4,200 3,800 3,400 3,000 2,600 4,150 3,841 3,591 3,644 3,670 3,673 3,898 3,910 3,868 3,432 3,564 3,761 3,816 MNS Brooklyn Rental Market Report October 2014 page 17

18 CROWN HEIGHTS With all unit types falling by at least 2.74% overall average monthly rents decreased by a sizable 5.02%. 2,200 1,900 1,600 1,300 1,000 1,425 1,350 1,429 1,513 1,538 1,514 1,495 1,760 1,779 1,781 2,175 1,847 1,711 2,300 2,038 1,775 1,513 1,250 1,876 1,788 1,789 1,778 1,753 1,921 1,793 1,985 2,125 1,998 2,295 1,980 1,926 2,600 2,325 2,050 1,775 1,500 2,393 2,270 2,227 2,345 2,439 2,431 2,410 2,597 2,527 2,552 2,570 2,420 2,296 MNS Brooklyn Rental Market Report October 2014 page 18

19 DOWNTOWN BROOKLYN Despite experiencing a 2.74% downturn this month, yearly average rents increased 5.4% which continues the trend of last month. 2,500 2,400 2,300 2,200 2,100 2,315 2,408 2,416 2,464 2,429 2,403 2,298 2,419 2,458 2,459 2,426 2,495 2,448 3,200 3,025 2,850 2,675 2,500 3,026 2,898 2,897 3,028 3,026 3,049 3,078 3,149 3,138 3,078 3,171 3,199 3,135 4,700 4,275 3,850 3,425 3,000 4,097 3,735 3,825 3,913 4,081 4,034 3,967 4,000 4,256 4,179 4,603 4,531 4,361 MNS Brooklyn Rental Market Report October 2014 page 19

20 DUMBO Overall yearly average rents increased by 4.6% due to a surge in Studio prices of 15.77%. 4,000 3,500 3,000 2,500 2,000 3,145 3,113 3,044 2,783 2,913 2,975 2,580 2,933 3,095 3,004 3,657 3,777 3,641 4,200 3,950 3,700 3,450 3,200 3,891 3,640 3,826 3,939 3,925 3,934 4,160 3,832 3,847 3,756 3,900 3,879 3,822 6,000 5,600 5,200 4,800 4,400 5,809 5,528 5,153 5,033 5,204 5,281 5,239 5,321 5,515 5,454 5,210 5,609 5,974 MNS Brooklyn Rental Market Report October 2014 page 20

21 FORT GREENE This neighborhood claimed the highest overall average monthly increase (among material sample sizes) in rents at 4.07%, while also rising by 5.0% from last year. 2,600 2,363 2,125 1,888 1,650 1,940 2,146 2,321 2,450 2,500 2,377 2,278 2,380 2,542 2,205 2,123 2,302 2,340 3,000 2,750 2,500 2,250 2,000 2,762 2,684 2,621 2,675 2,765 2,841 2,791 2,890 2,862 2,680 2,694 2,777 2,924 3,900 3,575 3,250 2,925 2,600 3,798 3,712 3,639 3,702 3,716 3,707 3,822 3,824 3,648 3,302 3,428 3,496 3,659 MNS Brooklyn Rental Market Report October 2014 page 21

22 GREENPOINT Although both monthly and yearly average rents fall by at least 4.05%, a Studio sample size of one unit renders this data misleading. 2,800 2,500 2,200 1,900 1,600 2,650 2,683 2,672 2,580 2,580 2,560 2,645 2,745 2,693 2,654 2,636 2,735 2,500 3,000 2,750 2,500 2,250 2,000 2,837 2,676 2,640 2,959 2,938 2,853 2,839 2,727 2,664 2,680 2,649 2,609 2,462 3,600 3,225 2,850 2,475 2,100 3,526 3,277 3,114 3,174 3,156 3,181 3,203 3,297 3,290 3,067 3,121 2,948 2,993 MNS Brooklyn Rental Market Report October 2014 page 22

23 PARK SLOPE Led by a 6.12% drop in One Bedroom prices, overall yearly average rents decreased by 4.0%. 2,800 2,375 1,950 1,525 1,100 2,295 2,083 1,923 1,861 1,847 1,928 1,936 1,930 2,045 1,906 2,749 2,126 2,179 2,900 2,600 2,300 2,000 1,700 2,704 2,563 2,635 2,664 2,597 2,512 2,513 2,619 2,600 2,565 2,808 2,612 2,539 3,400 3,125 2,850 2,575 2,300 3,243 3,116 3,268 3,093 3,169 3,103 3,247 3,237 3,392 3,206 3,237 3,254 3,196 MNS Brooklyn Rental Market Report October 2014 page 23

24 PROSPECT-LEFFERTS GARDENS Overall average rents fell by a nominal amount this month at a less than 0.5% rate. 1,700 1,500 1,300 1, ,300 1,250 1,275 1,223 1,175 1,213 1,308 1,250 1,500 1,300 1,300 1,600 1,445 1,800 1,688 1,575 1,463 1,350 1,650 1,517 1,467 1,433 1,500 1,621 1,693 1,697 1,739 1,702 1,516 1,595 1,699 2,400 2,225 2,050 1,875 1,700 2,200 2,019 1,967 2,117 2,254 2,211 2,066 2,307 2,353 2,336 2,245 2,123 2,164 MNS Brooklyn Rental Market Report October 2014 page 24

25 WILLIAMSBURG In spite of overall monthly rents declining only 1.17%, this neighborhood experienced the greatest yearly drop (among material sample sizes) throughout Brooklyn at 9.5%. 2,900 2,700 2,500 2,300 2,100 2,850 2,647 2,648 2,588 2,612 2,632 2,758 2,812 2,867 2,837 2,831 2,558 2,651 3,500 3,250 3,000 2,750 2,500 3,500 3,311 3,443 3,294 3,224 3,163 3,076 3,151 3,169 3,334 3,255 3,282 3,103 4,400 4,050 3,700 3,350 3,000 4,143 4,221 4,294 4,285 4,240 4,313 3,779 3,813 3,828 3,773 3,837 3,773 3,746 MNS Brooklyn Rental Market Report October 2014 page 25

26 THE REPORT EXPLAINED The Brooklyn Rental Market Report TM 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 TM is based on a cross-section of data from available listings and priced under $10,000, with ultraluxury 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 From large companies to individuals, MNS tailors services to meet your needs. Contact us today to see how we can help. Contact Us Now: 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. MNS Brooklyn Rental Market Report October 2014 page 26

27 Gramercy Park I Chelsea I Williamsburg