In Brooklyn, Elliman found, the rental market is also hot, with prices up for the 14th consecutive month and smaller apartments bearing the bulk of the increases. Tenants showed a greater willingness to seek affordability elsewhere rather than renew existing leases.
Price gains were seen across the studio and one-bedroom markets, with more mixed results in the larger size categories.
The median rent in Brooklyn grew 6.6 percent from a year ago to $2,852, but the luxury market rate increased only 1.8 percent to $4,500. The number of new rentals listed jumped 127 percent to 892 over the same period, reflecting strong tenant resistance to renewing leases at higher cost.
Cliff Finn, executive vice president at Douglas Elliman Development Marketing, offered his take on Brooklyn’s rental market.
“Many renters prefer the technology, design and amenities of today’s new developments, and they are usually willing to trade off a little space and often location to get it,” Finn said. “Brooklyn is no longer the big discount to Manhattan it once was. However, in most cases, there is still a bit of a discount when compared to comparable buildings in other Manhattan neighborhoods, which now may only be a 10 percent to 25 percent savings, sometimes higher or even lower depending on the location. Compared to some Upper East Side and Upper West Side locations, one will find parts of Brooklyn more expensive.”