Brooklyn Rents Stabilize While Sales Prices Soar
Sales prices in Brooklyn climbed for the 10th consecutive quarter, setting a new record, while rents finally seem to have stabilized. That’s the overall picture we drew from data in reports out today from Douglas Elliman and Corcoran, confirming what we’ve been seeing in the market recently. The Elliman report, prepared for the firm by Jonathan…
Sales prices in Brooklyn climbed for the 10th consecutive quarter, setting a new record, while rents finally seem to have stabilized. That’s the overall picture we drew from data in reports out today from Douglas Elliman and Corcoran, confirming what we’ve been seeing in the market recently.
The Elliman report, prepared for the firm by Jonathan Miller, president of Miller Samuel, showed the median sales price for a home in Brooklyn was up 17.5 percent in the first quarter of this year over the same period last year to a record of $610,894. The median condo sales price hit a new record at $729,750. The median sales price for a one- to three-family home was up 26.9 percent over the first quarter last year to $744,000.
One of the biggest jumps in price was for two-family homes in northwest Brooklyn — the swath of 16 neighborhoods from Brooklyn Heights to Park Slope, from Fort Greene to Dumbo. Prices for those properties were up 46.2 percent over last year.
The development boom also made its mark. New-development condo sales took up 10 percent of all sales in the first quarter, up 6 percent from this time last year. And the median sales price for those new units was up 24.4 percent. Even the price per square foot for new units was up 19.7 percent over the first quarter of 2015.
A similar report put out by Corcoran today reported a similar trend — an increase in sales prices across the borough. However it indicated an even sharper spike in prices. It reported that the median price in Brooklyn in the first quarter of this year was up 25 percent over the same period last year and the median price per square foot was up 34 percent.
It also provided price statistics by groups of neighborhoods. The sharpest rise in sales prices took place in Kensington, Windsor Terrace, Ditmas Park, Flatbush and Prospect Park South. Those neighborhoods were up 29 percent over the first quarter of 2014. Park Slope and Gowanus were only up 6 percent, according to the report. In southern Brooklyn, the median sales price actually fell by 1 percent, according to the report.
Rentals presented a very different story, according to the Elliman report. The median rental price of $2,893 was down 0.2 percent from the same time last year. And the number of days a listing sat on the market was up 30.2 percent from this time last year, to 56 days. Studio apartments and two-bedroom units both saw small increases over last year, as did luxury units (the top 10 percent of the market) and rentals in new developments.
The rental gap between Brooklyn and Manhattan also grew. Last year, the median Brooklyn rent was only $300 a month less than Manhattan’s. This year the gap is up to $502, according to the Elliman report. Brooklyn isn’t getting much cheaper for renters, but Manhattan appears to be getting even more expensive.
Image by Elliman
Rent is not stabilized in Brooklyn!
Over the past years since the development boom we who have been living in Brooklyn for twenty to thirty years have seen rent hikes up to 100% and those of us who work for minimum wage have no choice but to move in with relatives in cramped apt. just to make ends meet, while Brooklyn is being taken over by big money and greedy land lords are throwing out long time tennants for a piece of the action.
That’s what it’s called the housing market.. It’s a market.
Wow, there are almost zero neighborhoods left where houses will be sold under 700k dollars. Averages across the board are over @ or over 700k in both reports (I know some are below some are above that’s how avg’s work). But in both reports those neighbs where prices are near 700k mark saw massive YOY price increases. In Elliman report prices jumped 55% in East Brooklyn.
I think there is a definite slow down in houses in million dollar markets because of the limited pool of buyers (upper class), but where there is a larger marketplace (middle class and upper middle class) it looks like they are buying hand over fist.
Exactly right john.
Lilac, many of the new buyers ca afford these houses only if they are able to rent out parts of their homes at market rate. I wouldn’t call these new buyers greedy but rather hard working Americans making smart choices.
Hey Landlord, If you’re an adult spelling “you are” as “your”, you don’t deserve minimum wage.