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]
This large one-bedroom co-op at The Griffin in Fort Greene just hit the market with an asking price of $749,000. It’s a nice apartment on the eighth floor with good light and views as well as solid prewar credentials. We’d guess that this would have to be some kind of price record for a one-bedroom […]
This three-bedroom near the Navy Yard is reasonably priced and close to Fort Greene Park. The 1,250-square-foot apartment has a nicely sized living and dining space with newly refinished hardwood floors. There’s a washer/dryer in the basement and a shared backyard, as well as parking for a “low monthly fee.” But despite the proximity to […]
We stopped by 88 Richardson Street the other day, and lo and behold, the building is almost up to its full seven stories. This is the Karl Fischer-designed building with 188 units that is rising on the site of the former Meeker Flea Market next to the BQE in Williamsburg. The developer is Brooklyn-based Rabsky […]
This one-story garage at 564 St. Johns Place between Franklin and Classon in Crown Heights will be demolished soon and replaced by a Karl Fischer-designed eight-story apartment building. A demolition application was filed on Monday, but the DOB didn’t approve it because the filing lacked a plan exam. Developer Rabsky Group is behind the development, […]
A mixed-use development is in the works for part of a very large empty site on Myrtle Avenue across from the Marcy Houses in Bed Stuy, New York NIMBY reported. Architect Charles Mallea filed a new building application Monday for an eight-story, 46-unit building at 802-806 Myrtle Avenue. The street frontage will cover three of 15 contiguous empty […]