New Developments Widen Brooklyn-Manhattan Rental Price Gap

Median rents in Brooklyn are still increasing but not as crazily in the last few months, according to the latest report from Douglas Elliman. “Brooklyn’s rental market is still strong, however, it is leveling off,” said Executive Vice President and Director of Rentals Luciane Serifovic.

In the north and northwest sections of the borough, median rents are now $2,800, up 8.6 percent from a year ago. However, growth has slowed since the beginning of the year. There was also a “sharp drop” in new rentals from the same period a year ago, which means more tenants stayed put.

Price per square foot is also up sharply for the year period, rising 17.2 percent to $42.27. Average rents are $3,119, an increase of 5.1 percent for the year. The number of new rentals fell 53 percent to 225, said the report.

The median rental price has been stable since the beginning of the year, said Serifovic. “The reason you are seeing a drop in new rentals most likely is due to the release of inventory last year as well as more tenants resigned their leases at the time of renewal. There are lots of new rental developments being built in Brooklyn, and the vacancy is higher. Therefore the spread in median price between Manhattan and Brooklyn widened to $500,” she said.

Photo by Luna Park