A new report out digs not only into rental trends in Manhattan, Brooklyn and Queens, but also looks at employment trends as well. Since the kinds of jobs and the level of compensation employees receive is fundamental to how much people can afford to pay for rent, this analysis may provide a bit more insight than the simple rents are up or rents are down number crunching. The Mid-Year Triboro Rental Report from StreetEasy and leasing and tenant screening firm On-Site.com, authored by real estate consultant Nancy Packes, finds that some of the larger employment trends favor the outer boroughs’ more economical rents. The share of financial services employees in the city has been falling for years. In 2006, 58 percent of new renters worked in financial services, according to the report, but that fell to 44 percent in 2012. At the same time, the number of new renters employed by tech firms and the broad category of creative jobs has grown from 16 percent to 26 percent. And these people earn less than those in financial services. With less money to spend, these people are looking away from Manhattan in ever greater numbers. As a result, Manhattan rents have seen sluggish growth. Rents in Brooklyn, on the other hand, have been on the rise (though other reports have found slow growth here in recent quarters too). This report, which only examines rents through the first half of 2012, found that rents on studios in buildings with a doorman were up 16 percent over the previous year. Two-bedrooms in doorman buildings were up 22 percent in the year. And, the report concludes, there is plenty of room for rents to go even higher. “Looking at a renter’s ability to spend, there appears to be further capacity to push rents. Why? Over the last five years, salaries have not decreased, yet today’s income spent toward rent rests at its five-year average, having dropped 20% perent from its 2007 peak.” And it’s the creatives who spend the highest proportion of their incomes on rent.
Creative Workers Drive Down Rents [WSJ]
It looks like the foundation is going in for a five-story building at 588 Myrtle on the corner of Classon. The lot has been empty since the previous owners demolished a three-story house in 2007. We first reported on potential development here way back in 2008, and there have been a few aborted development plans […]
The Toll Brothers decided to embrace the design aesthetics of Brooklyn Bridge Park when building their newest luxury condo development, Pierhouse. Every unit will have its own $400 composter and wood floors reclaimed from Dumbo’s waterfront warehouses, reported The New York Daily News. Architect Jonathan Marvel lined the building’s base with the same granite used […]
Small real estate brokerages are flourishing in brownstone neighborhoods in Brooklyn, according to the Times, where buyers seek their local expertise and deep connections. In Bed Stuy, Evans & Nye is becoming known for having sold some of the most beautifully appointed and highest priced brownstones in the neighborhood, many just under $2,000,000. In April, […]
In a five-part series, The New York Times followed an 11-year-old girl living with six siblings and her parents in a homeless shelter in Fort Greene. The story contrasts the appalling conditions at the shelter — it has made headlines for years for having no heat and other problems — with the changes in the […]
We saw this limestone on the house tour a few years back when it was under construction by the contractor who has owned it since 2002. Now it’s on the market for $3,000,000, which would certainly set a record for a townhouse in Bed Stuy, as BK to the Fullest was the first to point […]