Greenpoint. Photo from the archive of Paul Frangipan.
According to a July report from StreetEasy, the recovery in New York’s rental property market is accelerating, especially in Brooklyn.
The report says the rapid rise in rents can be attributed in part to the surge in demand this summer.
“New Yorkers who fled the city during the pandemic began to return, while those who stayed renovated or moved again to avoid rent increases. And many people who have always wanted to live in New York have decided that with the unusually low prices this summer is finally the right time, ”said renowned online real estate platform StreetEasy.
In parts of Brooklyn, the report says rental prices are recovering quickly. In areas such as Bedford Stuyvesant, Greenpoint and Downtown Brooklyn, median asking rental prices in July 2021 were higher than before the pandemic began.
A report released Thursday said that throughout the city, rental discounts (lower rent or incentives like free rent for a month) are the rarest in Brooklyn. This reflects the strong demand for apartments in Brooklyn.
Greenpoint seems to be the hottest of all Brooklyn neighborhoods.
Greenpoint rents have grown the most in a year, according to StreetEasy. “The average asking rent in this area hit an all-time high of $ 3,395 – $ 80 more than the previous high in August 2019.”
The emphasis on Greenpoint is not new. In 2020, the same StreetEasy platform ranked Greenpoint as a “neighborhood to look out for” throughout the year. And in this area, StreetEasy searches on the Internet grew by 67% between 2019 and 2020.
Across the area, average asking rent in Brooklyn surged to $ 2,600 last July, approaching the pre-pandemic high of $ 2,700 seen in the summer of 2019.
Overall, according to the July report, the number of available rental space in Brooklyn fell to 17,411 units in July, down 33 percent from the peak inventory supply in August 2020. That was still higher than the amount of inventory available in July 2019, when there were 15,437 rental units on the market.
Across the district, only 8.7% of rents were cut in July. This is the lowest share of all analyzed districts and is significantly lower than in August last year, when the share of discounts peaked at 26 percent. In July 2020, 24% of Brooklyn rent was discounted.
In the city as a whole, only 9.1% of rents were depreciated, which is 20 percentage points less than last year.
In July 2019, during a typical active summer rental season, 15.6% of the rent was discounted. Thus, the figure of 9.1 percent this year is the lowest figure in a decade.
Flatiron, East Village, Financial District, and Nolita are popular neighborhoods in Manhattan, according to the report.
“I expect rents to continue to rise, but not as rapidly,” says StreetEasy economist Nancy Wu. “This summer, tenants started to return to the market in full force, and landlords took notice. They are trying to make up for the time and money lost during the lull of the pandemic by raising prices and canceling discounts. ”
In Queens, Brooklyn’s neighbor, the number of apartments available for rent remains high, according to the report.
“Rentals in Queens remained relatively high compared to Manhattan and Brooklyn. In July, 6,266 rental units were available in the area, which is 21 percent less than the peak in stocks in October 2020, ”StreetEasy said.
Rents in some of Queens’ most expensive neighborhoods are rising rapidly, but are still not up to pre-pandemic levels.