Brooklyn Rents Rise, Closing Price Gap With Manhattan
North Brooklyn is now only 4% cheaper than Midtown Manhattan - cutting the difference in prices in half since last year
NEW YORK, March 19, 2020 /PRNewswire/ -- Rents in February again reached all-time highs across New York City, according to the StreetEasy Market Reportsi. The StreetEasy Brooklyn Rent Indexii saw the largest year-over-year increase of all boroughs analyzed — up 5.5% to $2,745, the biggest jump since 2013.
Brooklyn's rent growth was led by North Brooklyniii, home to neighborhoods including Williamsburg and Greenpoint, where rents rose 6.7% to $3,278. North Brooklyn is now the fourth-most expensive submarket in all of New York City — behind only Downtown Manhattaniv ($3,840), the Upper West Sidev ($3,432) and Midtown Manhattanvi ($3,413).
While rents in Manhattan still rose by 3.6% to $3,320, the even-larger surge in Brooklyn rents has the borough closing in on Manhattan prices. In February, North Brooklyn renters were paying 4% less than renters in Midtown Manhattan, at $3,278 vs $3,413. Just one year ago, there was an 8% difference between the two submarkets - $3,072 in North Brooklyn and $3,311 in Midtown. In February, it was cheaper to rent on the Upper East Sidevii of Manhattan than in North Brooklyn or Northwest Brooklynviii, which include neighborhoods such as Downtown Brooklyn, Dumbo, and Cobble Hill.
"As rents reach all-time highs, renters are realizing they can get more space and amenities in Brooklyn for the same prices they're paying in Manhattan," says StreetEasy Economist Nancy Wu. "This phenomenon is causing rapid price growth in areas that were once considered to be relatively affordable, and we don't expect this trend to slow. Renters are entering a unique time in the market right now when flexibility and adaptability will be paramount."
See below for additional sales and rental market trends across Manhattan, Brooklyn and Queens.
February 2020 Key Findings — Manhattan
While rents reached record highs in the borough, the sales market continued to slow. The StreetEasy Manhattan Price Indexix fell 2.9% to $1,079,678. Upper Manhattanx, the borough's least expensive submarket, bucked the trend with prices rising 2.1% to $637,846 — showing that those seeking relative affordability are still facing more competition, even amid the broader slowdown.
February 2020 Key Findings — Brooklyn
Brooklyn rents rose at the fastest pace in seven years, according to the StreetEasy Brooklyn Rent Index, and asking prices grew even faster. Still on the rebound from the L-train shutdown cancellation, median asking rents for a 1-bedroom rental in North Brooklyn rose an astounding 18.2% to $3,250. Northwest Brooklyn wasn't far behind, with a 7.7% uptick to $3,204.
February 2020 Key Findings — Queens
Renters seeking affordability, space and amenities continue to look to Queens. When compared to mid-tier rent prices in Manhattan ($3,200 to $3,300), a renter can get a luxury-tier apartment in Queens for the same price, and many are taking advantage. The most expensive tier of rentals in Queens (the top 20%) saw the largest jump in year-over-year rents, growing by 5.1% to $3,276.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed here. Definitions of StreetEasy's metrics and monthly data from each report can be explored and downloaded via the StreetEasy Data Dashboard.
About StreetEasy
StreetEasy is New York City's leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as northern New Jersey.
Launched in 2006, StreetEasy is based in the Nomad neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit https://streeteasy.com/blog/research/market-reports. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.
ii The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from January 2007 in Manhattan, January 2010 in Brooklyn, and January 2012 in Queens. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology here.
iii The North Brooklyn submarket includes Williamsburg, East Williamsburg and Greenpoint.
iv The Downtown Manhattan submarket includes Civic Center, FiDi, Tribeca, Stuy Town/PCV, SoHo, Little Italy, Lower East Side, Chinatown, Battery Park City, Gramercy Park, Chelsea, Greenwich Village, East Village, West Village, Flatiron and Nolita.
v The Upper West Side submarket includes Lincoln Square, Upper West Side, Manhattan Valley and Morningside Heights
vi The Midtown Manhattan submarket includes Roosevelt Island, Midtown, Central Park South, Midtown South, Midtown West and Midtown East.
vii The Upper East Side submarket includes Upper East Side, Lenox Hill, Yorkville, Carnegie Hill and Upper Carnegie Hill.
viii The Northwest Brooklyn submarket includes Downtown Brooklyn, Fort Greene, Brooklyn Heights, Boerum Hill, Dumbo, Red Hook, Gowanus, Carroll Gardens, Cobble Hill, Columbia St. Waterfront District and Clinton Hill.
ix The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here.
x The Upper Manhattan submarket includes Hamilton Heights, Washington Heights, Inwood, West Harlem, Central Harlem, East Harlem, Manhattanville and Marble Hill.
SOURCE StreetEasy
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