Rents in "Prime" Brooklyn Jump 7.8 Percent in August, Setting Record

Despite investors warning of softening rents in Brooklyn earlier this week, rents set new records by every measure — median, average and per square foot — in the parts of Brooklyn closest to Manhattan, according to a report Thursday by Douglas Elliman. For the first time, the median rent surpassed the $3,000 per month “threshold,” noted the report. Here are the details:

• The median rent in August was $3,112 a month, a record and an increase of 10.8 percent vs. the same period the year earlier.
• The average rent in August was $3,421 a month, also a record, a gain of 7.8 percent vs. the year before.
• Rental price per square foot — one of the best measures of the market — increased 11.6 percent to $43.74 during the year, also a record.

“Limited supply, negotiability and use of landlord concessions are among the key reasons rents continued to rise,” said the report. “We anticipate more of the same conditions through the fall season.”

The dramatic increases in the report contrasted sharply with another August rental report out the week prior from real estate firm MNS. That report showed rents are stable. The average rent in August was $2,748.87 a month, up 0.26 percent from the year prior (when the average was $2,741.66), said MNS.

The discrepancy can be explained by the geographic focus of the two reports: The MNS report covered all of Brooklyn, whereas Douglas Elliman focused only on north, northwest and east Brooklyn.

Areas of Brooklyn closest to Manhattan are still a relative bargain: The median rent in Brooklyn was $288 per month less than the median in Manahttan, according to Elliman. Listing inventory decreased 2.4 percent to 1,753 during August vs. July. Days on the market increased, however, perhaps offering some hope to renters, from 37 days to 42.

The Elliman report was prepared by appraisal firm Miller Samuel and contains data from a variety of market sources.

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