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Brooklyn rents are on the rise again, but last month was not as fast-paced as usual. Average rent in the borough remained stable with just a .2 percent increase in price, climbing from $2,711.87 in December of last year to $2,717.39 this January, according to the MNS January market report for Brooklyn.
While monthly trends showed little shifts, average rent in January 2015 was 1.92 percent less at $2,666.26. The year-over-year increase rules out seasonality as a factor and isolates demand as a key element in rising average rent in Brooklyn. Moreover, month-over-month inventory levels increased 2.67 percent across the borough. In December, Brooklyn contained 3,296 rental units, as compared to 3,384 in January.
The high and low neighborhoods in Brooklyn
Fort Greene, Prospect Lefferts Gardens and Crown Heights all saw average annual growth in rent price. Average rents increased 9.4 percent, 7.8 percent and 7.8 percent, respectively, since last year in the aformentioned neighborhoods.
The most expensive neighborhood was Dumbo across all unit types and sizes. For January, Dumbo studios came in at an average $3,029 per month, one-bedrooms cost an average $4,088 per month and two-bedrooms had an average of $5,494 per month.
Conversely, Bay Ridge was the least expensive neighborhood in Brooklyn for studios, one-bedrooms and two-bedrooms. Bay Ridge studio average rent was $1,376 per month. For one-bedrooms, average rent was $1,651 per month and two-bedrooms came in at $2,161 per month.
Largest month-over-month changes by area
Crown Heights studio prices saw the largest monthly decreases with a 4.36 percent drop in average rent, or $74. Crown Heights studios were priced at $1,616 last month, and the overall Brooklyn average was $2,148.
On the opposite end of the spectrum, Boerum Hill one-beds increased 5.9 percent in average price, or a $156 price hike. One-bedrooms in Boerum Hill averaged out to cost $2,820 in January. In comparison, the average price for a one-bedroom in all of Brooklyn was $2,600 last month.
Two-bedrooms in Boerum Hill also jumped by 5.79 percent, or $206, to reach an average price of $3,764 last month. The average price for a Brooklyn two-bedroom was $3,404.
New development trends for Brooklyn in 2016
Aside from a steady start to 2016, Brooklyn finished strong in 2015, with average rents increasing 1.5 percent over the course of the year.
According to the report, high-priced units entered the market while less expensive units exited last month. Both Fort Greene and Boerum Hill increased in average rent by 2 percent or higher across apartments of all sizes.
High-rise developers and mid-market luxury builders are currently infiltrating the borough and have created a stir among long-time locals who prefer Brooklyn’s walk-up charm. How these units might alter market pricing is unknown until developments are complete, but demand in the borough has already brought average rent to Manhattan-like levels.
