North Brooklyn Sees Drop in Rents

NEW YORK — With the April 2019 shutdown of the L train looming closer, North Brooklyn rents continue to decline, according to the StreetEasy Market Report for February 2018.

The StreetEasy Rent Index for North Brooklyn — which includes neighborhoods served by the L train, such as Williamsburg and Greenpoint — dropped for the seventh consecutive month, to $3,027, meaning that February rents were 0.6 percent lower than last year. One in four rentals in the area received a price cut in February, up 2.6 percent annually. North Brooklyn surpassed Northwest Brooklyn — which stretches from Red Hook to Clinton Hill — as the submarket with the largest share of rentals discounted in the borough (25 percent compared to 21 percent).

Home sales prices in North Brooklyn remained strong: The StreetEasy Price Index rose 3.3 percent year-over-year to $1,104,818, but the amount of time for-sale homes spent on the market in North Brooklyn increased by 34 days over last year, to a median of 108 days. North Brooklyn homes took longer to sell than those in any other Brooklyn submarket in February.

The rental market across the city moved in renters’ favor, with the StreetEasy Rent Indices for Manhattan and Brooklyn remaining relatively flat since this time last year, at $3,129 and $2,537, respectively. In Queens, the StreetEasy Rent Index continued to fall, dropping 1.9 percent year-over-year to $2,064, meaning that rents dipped by an average of $41 per month. The share of rental units offering a discount increased 4.3 percent in Queens, 1.3 percent in Brooklyn, and 1.4 percent in Manhattan. Across these three boroughs, landlords offered discounts on one in five rental units.

StreetEasy Price Indices rose in Queens and Brooklyn and remained relatively flat in Manhattan year-over-year. The StreetEasy Price Index increased 6.4 percent in Queens to $516,148. StreetEasy Price Indices rose 2.9 percent in Brooklyn, to $751,240, and 0.8 percent in Manhattan, to $1,165,282.

“The L train shutdown is a tidal wave that’s been off on the horizon,” said StreetEasy Senior Economist Grant Long. “Now that we’re in the period where new leases will overlap with the shutdown in April 2019, we’re seeing landlords get more liberal with discounts to make sure they attract tenants — and maybe even incentivize them to stay for longer than a year. Renters should consider the reality of limited transportation to these areas, but there are bargains to be had if that’s a trade-off they’re willing to make.”

February 2018 Key Findings — Manhattan

  • Rents in Manhattan remained flat. StreetEasy’s Manhattan Rent Index rose just 0.6 percent to $3,129, continuing to mirror 2015 levels.
  • Sales prices stagnated, but declined in Upper Manhattan and the Upper East Side. StreetEasy’s Manhattan Price Index rose 0.8 percent to $1,165,282. Meanwhile, Upper Manhattan and the Upper East Side were the two areas where prices dropped, falling 1.9 and 1.3 percent year-over-year, respectively.
  • The Upper West Side offered the most rental discounts. One in four rentals on the Upper West Side were discounted, the highest share in Manhattan, up 1.7 percent since last year.
  • Homes in Manhattan spent longer on the market. Time on market grew 9 days since last year to a median of 90 days in Manhattan. In the Upper East and Upper West Sides, time on market rose by more than a month, up 36 and 37 days year-over-year, respectively.

February 2018 Key Findings — Brooklyn

  • Rents in Brooklyn stagnated, and in North Brooklyn, they dropped. The StreetEasy Brooklyn Rent Index rose 0.7 percent year-over-year to $2,537. Rents dropped 0.6 percent in North Brooklyn, to $3,027.
  • Sale prices rose. The StreetEasy Brooklyn Price Indices rose 2.9 percent to $751,240. Prices in North Brooklyn rose 3.3 percent year-over-year, to $1,104,818.
  • Price cuts rose the most in Northwest Brooklyn. The share of homes that received a price cut grew 4.1 percent, to a total of 8 percent in Northwest Brooklyn.
  • North Brooklyn homes lingered on the market. The amount of time North Brooklyn homes spent on the market grew 34 days since last year, to a median of 108 days. Homes moved off the market fastest in the Prospect Park submarket, with a median time on market of just 34 days.

February 2018 Key Findings — Queens

  • Queens rents fell while rental discounts rose. The StreetEasy Queens Rent Index fell 1.9 percent year-over-year to $2,064 — the largest annual decline recorded for the borough. The share of Queens rentals discounted grew by 4 percent year-over-year to 19 percent.
  • Rents dropped in Queens’ most expensive submarket. Rents in Northwest Queens — the borough’s priciest submarket — fell 3.3 percent year-over-year to $2,148, saving renters an average of $72 a month.
  • Homes sold quickest in Northwest Queens. Days on market dropped by a full 24 days in Northwest Queens, to a median of 81 days.
  • Prices rose to a record high. The StreetEasy Queens Price Index rose 6.4 percent to an all-time high of $516,148.
  • The share of homes with a price cut grew across Queens. The amount of price cuts offered on Queens homes rose 1.1 percent to 5.9 percent in February. South Queens was the only area where price cuts declined: down 1 percent, to just 4 percent of South Queens listings.