January 17th, 2013
MNS, the Brooklyn real estate firm published their Year End 2012 Brooklyn Rental Market Report today (last week’s December month report was published on DumboNYC today). The report reveals that, in 2012, the rents were up 8.6% which is up 2% from the average growth rate from 2011 to 2010. From 2010, rents are up an average of 16%. Breaking the numbers down from 2011, studios are up 7% from $1,693 to $1,812, one-bedrooms are up 8.5% from $2,211 to $2,400, and two-bedrooms are up 10.3% from $2,778 to $3,065. Average price for a two bedroom broke the $3,000 threshold this year. From 2010, one-bedroom units had the highest increase at 18.9%, up $382.
Some highlights of the report include the following:
- Neighborhoods such as Williamsburg and DUMBO surpassed Manhattan rents forcing renters to move out of Brooklyn and into the city. The opening of the Barclays Center and the Atlantic Yards development have definitely assisted in bringing Brooklyn rents to all-time highs. Yearly average rents were $1,812 for studios, $2,400 for one-bedrooms, and $3,065 for two-bedrooms. Average increase from 2011 was 8.6%.
- Some areas such as Fort Freene and Greenpoint are becoming more popular as renters are finding these areas more economical to live in. From a year ago, rents in Fort Greene and Greenpoint both rose an average of 22%.
- MNS is tracking more than 1,500 units coming to market in 2013. Most of the inventory will be in Downtown Brooklyn and Williamsburg. The inventory pipeline is expected to continue to rise as we see more development and growth in Brooklyn.
According to the report, the top three areas with the highest two bedroom rents are as follows: Dumbo: $4,985, Brooklyn Heights: $4,715, and Williamsburg: $4,002. The average rental prices changes in 2012: Studios (+10.42%), One bedroom (+11.67%), Two bedroom (+5.85%):
In Dumbo, 2012 mean rental rates for studios were $2,853, one bedrooms $3,712, and two bedrooms $4,985. The annual 2012 mean Brooklyn rental prices for studios were $1,812/mo, one bedroom ($2,400), and two bedrooms ($3,065).
Here are the Dumbo price trends of 2012 for studios, one bedrooms, and two bedrooms:
The Brooklyn Rental Market ReportTM is based on a cross-section of data from available listings and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. The data is aggregated from the MNS proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).