Brooklyn Marathon in Dumbo/Flickr User dumbonyc
Brooklyn prices went up once again in March, according to the latest MNS Brooklyn market report, which is encouraged further by the upcoming renting season.
The monthly average rent increased by .25 percent from February to March, from $2,716.55 to $2,723.46 per month. On an annual scope, the rent underwent a .45 percent push, as the average price was just $2,711.22 one year ago.
While Brooklyn was once considered a more residential alternative to the bustling streets of Manhattan, more single-dwellers are taking over the borough as of recent years and likely opting for smaller spaces, according to MNS CEO Andrew Barrocas.
“More areas of Brooklyn attract the younger demographic that might have once moved to the Upper East Side and other areas of Manhattan. They are now moving to Brooklyn,” he said.
Studio popularity was ubiquitous in March, with Crown Heights, Prospect Lefferts Gardens and Fort Greene featuring studio price increases of 15.98 percent, 15.46 percent and 12.66 percent over the past year.
Other Brooklyn neighborhoods where studio prices surged year-over-year include Cobble Hill (up 9.16 percent), Greenpoint (up 8.79 percent), Bay Ridge (up 7.47 percent) and Williamsburg (up 5.93 percent).
Studios largely led to the overall rent increase in Crown Heights and Prospect Lefferts Gardens, the report says, as they were neighborhoods with the largest annual increases in overall rent (all unit sizes included) at 12.4 percent and 9.2 percent.
A monthly look
- Average studio pricing: $2,158 — down from $2,162 in February
- Average one-bedroom pricing: $2,608 — up from $2,590 in February
- Average two-bedroom pricing: $3,404 — up from $3,397 in February
The largest monthly increases were seen in two-bedroom units in Crown Heights and Prospect Lefferts Gardens. From February to March, two-bedrooms in Crown Heights rose 4.19 percent, from $2,430 to $2,532. In PLG, two-bedrooms went up 3.63 percent, reaching $2,259 from a previous $2,180 average.
On the flip side, the most drastic decrease was in Boerum Hill two-bedrooms, shifting down in price by 3.87 percent. Average prices went from $3,749 in February to $3,604 in March.
Where are Brooklyn’s most expensive units?
Dumbo held March’s most expensive studios, one-bedrooms and two-bedrooms. Prices for Dumbo studios were, on average, $3,037 per month. For one-bedrooms, Dumbo averaged $3,947 per month and $5,553 per month for two-bedrooms.
The least expensive neighborhood in March overall was Bay Ridge. Studios came in at an average of $1,387, one-bedrooms at $1,708 and two-bedrooms at $2,227 per month.
Although Brooklyn inventory increased by 3.84 percent — the lowest out of all three boroughs in March — Barrocas said this has to do with high absorption rates and the speed at which Brooklyn units are being turned over.
“Brooklyn, as a brand, is growing faster than any other market,” he said. “There is a lot of inventory coming and there is a lot being planned. The issue that is, once again, the 421-a tax exemption. It’s a huge thing to be able to make rentals really work.”
