The New Coney Island - Brooklyn's Times Square by the Sea

Sunday, July 26, 2015

Crains- Brooklyn housing boom pushes sale prices and rentals to new highs

Excerpt -

Rents and home prices reached record levels in Brooklyn during the second quarter of 2015, according to a market report released Thursday.

The average sale price for a Brooklyn home reached a record $788,529 during the second quarter, according to a report by Douglas Elliman Real Estate. The price inched above the previous high-water mark the same time last year by $5,233. Historically low inventory, a lack of new product being built and tight credit conditions contributed to the increase.

As a consequence, many people who would have purchased a home continued to rent, especially in popular Brooklyn neighborhoods. That pushed median rent in the northwestern portion of Brooklyn, which runs from Greenpoint and Williamsburg down through Park Slope, to an all-time high of $2,964 a month. 

"Whether you're renting or buying, you're looking at higher housing costs," said Jonathan Miller, chief executive of Miller Samuel, the firm that prepared Douglas Elliman's report. "As a general rule, this is not necessarily a good thing for a city that is creating jobs, because the people who fill them might not be able to afford to live here."

Granted, Brooklyn did record a 35% increase in the supply of for-sale homes compared with the same period last year, according to a report from the Corcoran Group. But those apartments came on the market after three quarters of declining inventory, and were being snapped up at a historically high pace, only sitting on the market for an average 71 days. 

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