DoBro's Average Household Income to Double?
The average household income in Downtown Brooklyn and surrounding neighborhoods is expected to double in two years, according to marketing material for 345 Adams Street. Roger Greenstone, who’s eponymous firm is marketing Muss Development’s two floors of retail in the building, told us he expects to score high-end tenants that will cater to affluent residents…
The average household income in Downtown Brooklyn and surrounding neighborhoods is expected to double in two years, according to marketing material for 345 Adams Street. Roger Greenstone, who’s eponymous firm is marketing Muss Development’s two floors of retail in the building, told us he expects to score high-end tenants that will cater to affluent residents in the sorrounding community, a contingency that’s quickly taking over. Last year, Scan/US Inc. estimated households in Downtown Brooklyn, Brooklyn Heights, Fort Greene, Cobble Hill, Boerum Hill and Park Slope earn an average annual income of $87,139 based on U.S. Census Information. The Downtown Brooklyn Partnership estimates that number will jump to $172,000 $142,000 by 2010 thanks in part to 27,000 new condos under construction, according to the brochure. (Update: DBP just alerted us to the fact that Greenstone had the number wrong.) Some of those projects are presently stalled, but people have already moved into others like One Hanson Place and construction cranes are everywhere. Even if the increase is not quite double, it will still be pretty significant. See the full data after the jump…
Developer to Air Out 345 Adams Street [Brownstoner]
Chan upbeat about Downtown Brooklyn [Real Estate Weekly]
Atlantic Yards has 6,500 apartments. And the study area includes Dumbo, Fort Greene, Park Slope, Carroll Gardens, Brooklyn Heights, Cobble Hill and Boerum Hill. In the post I noted that the number is high, probably based on best possible scenario conditions. But experts also consider the above neighborhoods among the most stable in Brooklyn in the event of a huge economic downturn. Also, it doesn’t have to be hedge fund tycoons. A couple with each partner earning more than $50,000 for example, that could be anyone in a union job. But I am not going to pretend to know what the future extent of this economic downturn will be here. The post depicts a present forecast, which is why we ended the headline with a question mark…
i agree with sarah — even if prices are lowered the average income is going uuup.
I was just explaining how that figures could work. And even if the prices on these units were lowered, a household would still have to earn more than $100,000 to afford the majority of them.
about 15,000 of those 27,000 apts are atlantic yard which may never be built.
even if they do, we are talking 10 years from now.
saying 27,000 units NOW is rather absurd.
there are less than 10,000 coming online now.
a very different thing.
Well, this is assuming all those condos get bought at expected value and that older properties retain their value, which may or may not happen. Weird things can happen when bubbles burst.
The alternative to your take on it, Sarah, is that a whole bunch of these units will sit empty for ages, with the developers having to eventually lower prices and rents to more affordable levels.
Because of the amount of money it cost to buy those condos. If you look at the data, there are now 20,043 households in the area earning more than $100,000. It says 27,000 condos (households) are under construction in the study area, although that number is high, considering some projects (most notably Atlantic Yards) have not began construction and will not be finished by 2010.
But if you look at the new projects that are under construction or have been completed, you can see that a household living there would easily have to earn over $100,000 a year. The lowest listing at the typically priced BellTel Lofts, for example, is a studio for $540,000, which would require a $108,000 down payment for a mortgage with 20 percent down. The most expensive listing at BellTel is a three bedroom for $1.89 million, requiring a $378,000 down payment. Even the rentals are pretty high – a studio at BellTel is $2,500 a month, which is 30 percent of a $100,000 a year income.
And that’s not considering the multi-million sales of existing condos and townhouses in these prime brownstone neighborhoods.
So while the economic slowdown will drag some of that new construction down, there’s still going to be a huge boon in the number of households earning $100,000 or more in the study area, offsetting what is earned by people in the lower income brackets, who are not a growing population in this area.
11:33 because only people of a certain income will qualify for purchase of these condos. these are expensive condos. condo residents will soon far outnumber all other residents of downtown
I don’t get it. How does the new condo developments translate to increased income?