For those renters who are priced out of Manhattan and are looking to Brooklyn, New York instead, think again.
Rents in Brooklyn rose a whopping 10.1 percent in November, reducing the gap between Brooklyn and highly sought after Manhattan.
The average rent in Brooklyn rose to $2,698, according to a report that tracks New York rent prices. Meanwhile, Manhattan rents continue to show signs of cooling, as rents increased just 1.4 percent to $3,195, the report said. It was the lowest annual increase in more than a year.
“The spread between Manhattan and Brooklyn is getting smaller,” Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiled the report, said. Brooklyn rents rose in November in part by a greater number of three-bedroom apartments rented during the month, Michael Guerra of Brooklyn, said.
Some of the larger apartments were rented by victims displaced by Hurricane Sandy. In general, demand for Brooklyn continues to grow, as it becomes a destination of choice, not a second option after Manhattan. Also boosting the rental market in Brooklyn, us a stronger labor market and tight credit conditions for prospective buyers of apartments and houses.
“The whole city is seeing an increase in rental prices,” Guerra said.
“Demand in Williamsburg is huge,” he added. “There is no inventory and apartments under construction is not yet available.” Across the bridge, Manhattan rents are cooling.
Another report showed that the average Manhattan apartment rented for $3,368 in November, a decrease of $76 from October and up $53 from last year. It was the third consecutive month over month drop.
The financial district saw rents fall 12 percent since October as Hurricane Sandy may have damaged the appetite for tenants in the neighborhood.