Residential Rents in Brownstone Brooklyn Receding
After ramping up in the spring and summer, residential rents in Brownstone Brooklyn began to ease in October and continued to decline through the end of the year. That’s the big take-away from Ideal Properties’ year-end report. Not surprisingly, supply was up by more than 50 percent over 2007 for one-, two- and three-bedrooms; the…
After ramping up in the spring and summer, residential rents in Brownstone Brooklyn began to ease in October and continued to decline through the end of the year. That’s the big take-away from Ideal Properties‘ year-end report. Not surprisingly, supply was up by more than 50 percent over 2007 for one-, two- and three-bedrooms; the number of available studios rose only 17 percent. With greater competition for tenants, the percentage of No Fee apartments also rose from about 2 percent to over 20 percent. Landlords aren’t getting too desperate yet though. According to the report, “unlike their Manhattan counterparts, Brooklyn’s prime neighborhoods’ landlords have not started offering ‘first month free [rent].'”
“The movement on those charts seems too volatile to reflect solely the changes in value of comparable apartments.”
It’s October that counts and now everything is trending down. Volatility has been wiped out.
***Bid half off peak comps***
Trust me, this isn’t an environment where the majority of tenants can demand rent decreases from their landlords.
You renters are smoking some pretty serious crack out there.
Rent in Bedsty 1200 dollars a month. Now I know what homeowners are smoking. Keep dreaming,
This may be rather simplistic, but it seems to me that rents that were hyper inflated, due to location/neighborhood, perceived hipness quotient, and plain old greed, will go down, but not all that much. There will still be the strong desire to live in these neighborhoods or buildings, and people will still pay to do so.
Rents in other neighborhoods, specifically mine, since that is what I am familiar with, will stay pretty constant, and may even rise a small amount. Market rate in Bed Stuy/Crown Heights is around $1200-$1350 for a floor through in a nice brownstone on a good block. That’s not exorbitant, for your average small landlord, living on site, that’s a fair rent, and barely yields any profit. I might add, most rents I hear about are closer to $1200 than $1350.
Rents do ‘seem’ to go up near summertime and have for many years. But if you look at the chart year begin to end studios and 1 bedroom about the same and 2 and 3 bedroom slightly higher.
And to Rob: so go check out those roommate listings. Just because called a ‘2 bedroom’ doesn’t mean apts are anywhere near =. Can be a cramped studio sized apt converted to a 2 bedroom or a spacious 2 bedroom with a real closet for yourself.
“anyone’s guess as to how much they think we’ll pay when the lease is up for renewal in may?”
The same if you’re good and your landlord has some sense. Even less if you rack up some opportunities to dangle in your landlord’s face. Negotiate.
***Bid half off peak comps***
The way I look at it – it shows one trend: rents always go down around October until May, which has been my experience for last 12 years of being a landlord. The best time to rent when you are a renter is late fall and winter.
For the owner best time is summer. Always been this way, so what’s new? Lets see what happens in May again and we can realistically talk about it again. There are a lot of new developments going rental now so definitely good chance that the rents will stay where they are or go down a little with lots of competition around.
Thanks, What, for your carefully reasoned and nuanced analysis of the local rental market based on actual experience and data. I appreciate the guidance. Hope you had a good New Year.
Anyone else?
I’m extending the lease to the current tenants. They are great tenants. In 5 years that place will be renting for almost $2,000 and covering 75% of the building carrying costs. I’ll be living there for free in 7-10 years!!!!