Brooklyn rental market sizzling this summer as low inventory and strong demand push prices up

Rents in Brooklyn soared 8.2% in July, compared with July 2012

Cairo, Joel Freelance NYDN/Cairo, Joel

Rents in Brooklyn soared 8.2% in July, compared with July 2012.

Brooklyn renters are feeling the pain.

The hotly sought-after borough saw its average rent climb to $ 3,035 in July, a hefty 8.2% jump from July 2012, according to a report from Douglas Elliman.

Brooklyn’s rep as a haven for those priced out of Manhattan is fading, with the price spread between the two boroughs narrowing.

The average rent in Manhattan was $ 3,822 in July, up 1.7%.

The gap between Brooklyn and Manhattan rents “is one of the closest we’ve seen since we’ve been tracking this,” Mark Menendez, Douglas Elliman director of rentals, Manhattan, told the Daily News.

Brooklyn luxury units – those priced at the top 10% of the market – led the surge, with the average rent in this segment hitting $ 6,007, up 8.8%.

The Douglas Elliman report tracks the north and northwest regions of the borough, which includes neighborhoods such as Greenpoint, Williamsburg, Cobble Hill and Brooklyn Heights.

“When quality apartments become available, they get snapped up,” Michael Guerra, Douglas Elliman executive vice president, Brooklyn, told the News.

“Prospect Heights and Crown Heights are super-hot right now.”

The Manhattan rental market was relatively flat, though rents remain at a very high level.

A report from Citi Habitats said the average rent for a Manhattan apartment in July was $ 3,442, $ 18 more than the average in June, but down slightly – $ 17 – from July 2012.

The rental market “has reached a state of equilibrium,” Citi Habitats president Gary Malin told the News. “Over the past year, we have seen only modest price adjustments from month to month in either direction.”

For the last five months, the pace of price increases in Manhattan has been slowing, noted Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles the Douglas Elliman data.

The vacancy rate in the borough widened to 1.28%, up from 1.1% in June, Citi Habitats said. Traditionally, vacancy rates tighten during the summer months.

The increase in available rentals in Manhattan could be a sign that apartment seekers are putting off their home search because they’re unwilling to deal with the borough’s high rents.

Recent college grads, who in the past may have opted to move to Manhattan early to spend summer in the city, are now finding that prospect way too expensive, Citi Habitats said.

“While still relatively low, this uptick in vacancy during the peak summer season is a sign that renters have reached their pain threshold,” Malin said.

Lifestyle – NY Daily News

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