Rents in New York City reached an all-time high last month, according to a new report.
StreetEasy recently released their February Market Report for Manhattan, Brooklyn and Queens. According to their findings, Brooklyn led the way in rental price increases — rental prices in Brooklyn went up 5.5% to $2,745 in February, the largest year-over-year increase of all boroughs analyzed.
Brooklyn’s rent growth was led by North Brooklyn, which includes Williamsburg and Greenpoint, where rents rose 6.7% to $3,278. According to the report, North Brooklyn is now the fourth-most expensive submarket in all of New York City, following behind only Downtown Manhattan ($3,840), the Upper West Side ($3,432) and Midtown Manhattan ($3,413).
Following close behind was Northwest Brooklyn, which covers Downtown Brooklyn, Fort Greene, Brooklyn Heights, Boerum Hill, Dumbo, Red Hook, Gowanus, Carroll Gardens, Cobble Hill, Columbia St. Waterfront District and Clinton Hill. The area saw rental prices rise 7.7% to $3,204.
“As rents reach all-time highs, renters are realizing they can get more space and amenities in Brooklyn for the same prices they’re paying in Manhattan,” said StreetEasy Economist Nancy Wu. “This phenomenon is causing rapid price growth in areas that were once considered to be relatively affordable, and we don’t expect this trend to slow. Renters are entering a unique time in the market right now when flexibility and adaptability will be paramount.”
While Manhattan saw an increase in rental prices as well (the borough rose 3.6% to $3,320), the sales market slowed down a bit. Overall, sales prices for Manhattan homes fell 2.9% to $1,079,678. However, Upper Manhattan went against the trend with prices rising 2.1% to $637,846.
The report found that out in Queens, renters are seeking affordability, space and amenities. The most expensive tier of rentals in Queens saw the largest jump in year-over-year rents, growing by 5.1% to $3,276.
Read the full report at streeteasy.com.