Report: Brooklyn, Manhattan rental prices reach record highs in 2013
If you thought the outrageous rents in Brooklyn and Manhattan couldn't go up anymore, think again. A report released Wednesday finds that the average price for apartments in both boroughs reached record highs last year.
Real estate group MNS found that the average monthly rental price for Brooklyn pads went up 5.6% from $2,426 in 2012 to $2,562 last year, an all-time high. Manhattan's average rent rose from $3,762 in 2012 to $3,905 last year.
MNS CEO Andrew Barrocas said the surge in interest for Brooklyn real estate is worth noting because it shows the city's growth after the housing crisis is spreading to all five boroughs.
"Brooklyn is certainly a primary market now," he said. "You have a lot of money coming into New York and there is a lot of confidence here."
Bushwick saw the greatest increase in rent prices in the borough in 2013, according to the report. Average rent prices for studios went up 17.1%, one-bedrooms increased 12.2% and two bedrooms went up 4.63%.
Gary Malin, the president of the real estate group Citi Habitats, said he has seen an increased interest in Greenpoint recently as well. The northwestern Brooklyn neighborhood has gone through a "phenomenal transformation," with new shops and destinations without the hefty residential price tag, according to the expert.
"But what's there now is probably better value than [neighborhoods such as] Park Slope or Brooklyn Heights or Williamsburg that [have] already undergone this transformation," he said.
The report added that two-bedrooms have been in huge demand in neighborhoods such as Cobble Hill, Greenpoint, Fort Greene and Boerum Hill, noting that more than 30% of households in those communities have children.
"What's happening now is that people are coming into these communities and they see the amenities for families like good schools," Barrocas said.
He predicted Brooklyn rents will continue to grow in 2014 as apartment hunters seek a pleasant environment to call home, but added that Manhattan's rent price surge shows no signs of stopping either.
The MNS report said high demand for apartments in Harlem, the Upper West Side and the Financial District drove rent prices up in those neighborhoods last year. TriBeCa led the borough with a median rental price of $3,404 for a doorman studio apartment, according to the report.
"Prices keep increasing but the demand is still there," Barrocas said.
The report said there are still some good deals for bargain hunters like in midtown east where the average rental price dropped during the last four months of 2013.
Malin said despite the records, Manhattan prices won't be getting too crazy.
"We've seen the vacancy rise. We've seen prices come down a little bit. We've seen concessions," he said.