It is indeed the borough of kings.
Manhattan is no stranger to rental homes in the five-, even six-figure range — but across the East River, a neighbor is holding out. These days, Brooklyn is seeing several record-high rental listings hit the market.
For example, rent for $40,000 a month in Brooklyn Heights. that listed With Sandra Cohen of Sotheby’s International Realty shortly before Thanksgiving. This is a 4,000-square-foot condominium in One Brooklyn Bridge Park whose features include five bedrooms, a corner living room, and a chef’s kitchen with Gaggenau appliances. Last month, broker Sarah Williams, founder of SOCIETE Real Estate, $36,000 spread listed With four bedrooms at 130 Furman St. in Brooklyn Heights — plus a private roof terrace with space for al-fresco dining and Manhattan skyline views. Available this June via Compass, a Greenpoint penthouse at 524 Manhattan Ave. A triple-story living room, multiple outdoor spaces – including a landscaped roof deck – asks a cool $30,000,
Market data suggests that these are not just one-off instances. Monthly rents of $18,000 or more in Brooklyn actually see an increase through 2021, according to research from Brown Harris Stevens. So far this year — barely two months into 2023 — there have been 13 such listings on the market, with rents averaging $25,205 a month and averaging at $22,000.
“Brooklyn luxury is having its moment in the sun,” said Compass agent David Chang, who lives in the borough and specializes in high-end rentals there. has gone, and is scooping up luxury properties.” At the same time, additional Chang’e, limited inventory is driving up rents, and properties are being rented at or above market value.
The rental of the luxury building Magnolia DUMBO on Front Street, launching in early 2022, reflects this powerful market presence. In less than 11 months, all 320 residences are fully leased for one to two years, said Jarrod Whitaker, senior vice president of operations for RXR, the building’s developer. “We were anticipating the rent to be $81 per square foot, but in the end we got $91,” he said. “It speaks to the vitality of the market.”
Sydney Blumstein, a Corcoran broker who has lived in Williamsburg for the past several years, said she’s personally cashing in on the Brooklyn rental market — which she describes as “on fire.” And he has experienced today’s skyrocketing prices for himself.
“My husband and I rented our loft for the first time on February 1st and are making $24,000 per month,” she said — and StreetEasy shows the price is the highest for a rented home in Brooklyn. Spanning an entire block, the 139 Powers St. property is a converted warehouse, and offers 4,200 square feet of interior space and an additional 2,500 square feet of outdoor space. This listed in november As The Post reported, for $35,000 per month, which made it the most expensive Brooklyn rental on the market at the time.
Blumstein said she’s seen many more expensive rentals in Brooklyn as of late than before — and even at different price levels than the tippy-top of the market, these homes still fetch high sums. are doing.
“Properties that are being re-listed are in some instances twice as much as the last time they were on the market,” he added. “I’m about to list a 2,000-square-foot loft in Clinton Hill to rent for $4,000 a month, but this time, the asking price is $8,000. I have no doubt it’s going to rent.” Is.
Brooklyn rental prices have reached peak levels overall, except at the top end of the market.
According to Corcoran data, the median rent in Brooklyn in January 2023 was $3,695, up 5% from December and 23% year-over-year. The median rent was $4,220, up 25% from a year ago. What’s more, January was the 16th consecutive month of year-over-year rent increases in the borough.
In another data point, research by Douglas Elliman and Miller Samuel Most recent rental report shows The median rental price in Brooklyn was $4,165 in January, a record high since 2008. That’s up 31.7% from a year ago, the most growth in history for Brooklyn, said Jonathan Miller, president and CEO of Miller Samuel, and up 23.7% from the prior. Pandemic fares.
“Rents are higher because mortgage rates are higher,” Miller said of today’s interest rate climate amid the battle against sluggish inflation. “People that are priced out of the purchase market are going into the rental market, and that’s why it’s historically high.”
In addition, Miller said new development in Brooklyn focuses on luxury rental buildings, which drive up prices. “These buildings are highly upscale and advanced, and that means higher rents,” he said.
StreetEasy economist Kenny Lee agrees. The company’s research indicates that the average rent in Brooklyn is $5,148 – up 20% from a year ago. “This growth is largely driven by an increase in new luxury developments entering the market last year, which contributed to the listing of five new top-tier rentals in 2022,” he said.
Examples of these luxurious developments include Eagle + West in Greenpoint, which includes a co-working center and even a stage for karaoke. Meanwhile, the Torrey House in Brooklyn Heights has three swimming pools, including one on a rooftop with city views.
Lee said the neighborhoods with the most top-tier rentals are downtown Brooklyn, Greenpoint and Williamsburg — and at 9,446 units, current rental inventory is 30% below the average inventory level in 2019. This number is just 0.1% less than the previous one. Year.
Lee and other industry experts said the ability to afford super-luxury rents has many of the attractive qualities in Brooklyn that make it a desirable place to live. Lee points to the larger square footage they offer per dollar compared to those in Manhattan. “They allow more space for home offices for hybrid and remote workers,” he said.
Blumstein said the outdoor space available to residents is a big draw. “There aren’t as many tall buildings, and you see more sky. You’re still in the city, but there’s a little more suburban flavor,” she said.
Speaking from personal experience, Blumstein is also a fan of the sense of community. “Your neighbors in Brooklyn are usually friendly and happy to socialize or help out if you’re in a bind,” she said. “You are never alone in trying to find your way, and there is an assurance in that.”