Brooklyn, NY has been on the up and up for years now - with many hailing it as trendier than it's Big Apple Brother, Manhattan. We asked local New York City real estate agent Leah Azizian to highlight some key facts regarding the Brooklyn market for this segment of the Market Series.
Azizian shared that, "people are looking to move to Brooklyn due to the more spacious layouts, lower prices per square foot and more ample opportunities with private outdoor space. Considering the work from home lifestyle that New Yorkers are experiencing, it has pointed many to explore the housing options in Brooklyn." So, with that, here's the current situation in Brooklyn, NY when it comes to the real estate market.
Quick Facts:
- 2.6 million population
- 77 neighborhoods make the borough.
- The house prices median from $520K to $1.5M
- Brooklyn, NY is currently a seller's market.
Exploring Brooklyn, NY
Weather and Temperature
The city experiences seasons! The winters are cold and snowy - a beautiful sight with all of the bridges and cityscapes. The summers are humid and warm. The shoulder seasons are undeniably beautiful. The temperature typically ranges from 28F to 84F.
Sought-after Neighborhoods
According to Azizian, neighborhood desirability depends on what the needs of the purchaser and/or investor. Azizian shares that "for the past several years, Bushwick and Bedford-Stuyvesant have been attractive neighborhoods to investors due to the condos built in new developments that allow for immediate and unlimited subletting. The neighborhoods have and continue to open doors to first time buyers, investors and even developers who are looking for vacant land or multifamily opportunities. However, over the years we have seen increasing interest from the developers’ side which has led to saturation. As land continues to be developed and prices continue to rise, we see developers naturally scout other underdeveloped neighborhoods. We’ve seen increased interest in neighborhoods such as East New York, and even in areas of Uptown Manhattan, such as Inwood, where there are lots of opportunities to be explored."
For clients who want a primary residence, Park Slope seems to be a major draw. The neighborhoods surrounding Prospect Park are most ideal as people desire more and more outdoor time. Leah points out that "neighborhoods such as Park Slope and Prospect Heights, have also seen increased interest due to their charming townhomes with private outdoor spaces, as homeowners continue to upgrade to from their apartment residences."
Real Estate Condition
(Data from June 2021)
In the past year there's been a heightened interest in townhouses, especially amongst Manhattan residents who have been craving larger homes and private outdoor space. A lot of apartment dwellers are also upgrading to townhouses. The townhouse median price per square foot increased from $528 (June 2020) to $571 (June 2021).
The pent up demand over the past year, low inventory and interest rates, have resulted in an increased average price per square foot - across the borough of Brooklyn - from $740 (June 2020) to $844 (June 2021).
Moreover, the low mortgage rates during the pandemic caused homeowners to refinance and stay in their current homes. As a result, the housing inventory is low.
This past quarter saw an increase in housing inventory in Brooklyn by approximately 10%. This is surprising as the past 4 quarters saw a decline in housing inventory; yet it speaks to the increasing health of the Brooklyn and NY market.
Across the borough for June 2021, the median price was $520,000 amongst co-ops; $943,718 amongst condos; and $1,500,000 amongst townhouses - an increase on all counts from June 2020's median numbers.
What to expect?
When we asked Leah Azizian what she thought about the future - she graciously shared the following:
"In the past several months, we’ve seen the market regain its strength and momentum. Buyers have come out of the woodwork. The pent up interest that was built over the past year or so along with the attractive interest rates, have allowed for a market that is in some neighborhoods even stronger than pre-covid. The current challenge that we face is the lack of inventory, which has in result led to a seller’s market.
The exception that we find is amongst new developments. There is a surplus of inventory across Manhattan and Brooklyn. The high construction costs have slowed down the rate of development. I do believe though that over the next couple years, as construction costs calm and new buildings are launched, we will see the scale tip toward the favor of developers. In my mind, it is currently an advantageous time for developers to think outside the box, be creative, and build long lasting projects.
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