Behind Manhattan: Brooklyn Rental Prices Fall Amid Pandemic

As you know, the cost of renting real estate in Manhattan began to decline in the middle of summer, and the number of vacant apartments there reached a record high. Now, similar trends are beginning to be seen in Brooklyn. In July, the number of apartments for sale here increased by 84,2% compared to July last year. The details were shared by the edition Surbed.

The quarantine introduced in connection with the coronavirus pandemic has been going on for more than five months. Since then, the picture of the New York real estate market has changed a lot. First of all, the changes affected rental housing in Manhattan. Wealthy residents of the metropolis, who usually choose this part of the city for life, either moved out of town or moved out because they were unable to pay their bills due to loss of income. This led to a significant drop in rental and home prices.

Rentals in Brooklyn have proven to be more resilient than in Manhattan and Queens. Brooklyn's median July rents were broadly unchanged from last year, while average Manhattan rents fell 7,6% and median rents in Queens, home to a large number of low-income citizens, fell 14,2 , XNUMX%.

However, there are early signs that rental prices in Brooklyn are also starting to decline. This is happening all over the place - from Sunset Park to Red Hook, where average July rents are declining 20% ​​or more year after year.

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In Brooklyn today there is a lot of vacant housing for rent. According to Miller Samuel, the number of apartments on sale in July increased by 84,2% compared to July last year, while the number of new leases decreased by 24,2%. This clearly indicates that demand is not keeping up with supply, which leads to a drop in prices or rental rates in any type of market.

Many of Brooklyn's hardest hit areas are areas with a higher concentration of lower-income workers, who are more likely to experience job loss than middle- or high-income workers.

According to Miller Samuel, Cobble Hill, Borum Hill, Greenpoint and Williamsburg were some of the neyborhodes that saw modest annual rent declines. Many of these neyborhods are inhabited by young professionals who can afford to work from home.

Neighborhood homes where workers live, such as Sunset Park, Red Hook, Brighton Beach and Avenue Heights, have seen significant rent drops (as has prosperous Brooklyn Heights, which is more demographically similar to Manhattan).

Other Neighborhoods in Brooklyn saw rental prices rise. The list includes: Clinton Hill, Carroll Gardens, Crown Heights, Park Slope and Bushwick.

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If we talk about the cost of renting housing in Brooklyn, depending on the number of rooms, the situation is as follows: in July, the average rent for a studio decreased by 12% compared to July last year; apartments with one or two bedrooms also fell in price, while apartments with three or more rooms went up by 1,9%.

The downward trend in prices is likely to continue in the fall and early winter. Although the city has managed to resume some of its normal economic activities, the effects of the pandemic are likely to be felt for a long time to come. At least until America grapples with the rise in new cases of COVID-19.

Recall that the number of apartments for rent in New York has doubled over the past year... This is a record high in 14 years since data collection began.