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The report we author for Douglas Elliman covering the Manhattan/Brooklyn rental markets was published today.
Back in February many observers of the Manhattan and Brooklyn rental markets were saying: “The Spread is Dead, Long Live the Spread!” Ok not really.
But there was a lot made of the fact that the difference in median rental price between the two markets narrowed to $210 from as much as $1,125 in 2008. Manhattan rental prices had stabilized at the end of last year as Brooklyn continued to see sharp gains.
But that was as close as it got. Since the beginning of the year, month-over-month Manhattan rental prices began to rise as Brooklyn started to level off.
Manhattan rents cooled last year as the sales market poached demand from record volume. I saw the decline was temporary. The excess purchase activity from several years of pent-up demand has largely been absorbed allowing rents to begin climbing again.
Brooklyn rents are beginning to level off as a result of all the new rental development entering the market soaking up demand.