Think you can get a bargain in Brooklyn? Fuhgeddaboudit!
Rents in Brooklyn rose a whopping 10.1% in November, narrowing the rental gap between the much-hyped borough and Manhattan.
The median rent in Brooklyn surged to $2,698, according to a report from Prudential Douglas Elliman.
In the meantime, Manhattan rents are continuing to show signs of push-back from tenants, rising just 1.4% to $3,195, the brokerage firm said. It was the lowest annual increase in more than a year.
“The spread between Manhattan and Brooklyn is getting smaller,” said Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiled the report for Prudential Douglas Elliman.
Brooklyn rents in November were lifted in part by a larger number of three-bedroom apartments leased during the month, said Michael Guerra, Prudential Douglas Elliman’s managing director, Brooklyn.
Some of those larger apartments were likely rented by displaced victims of Hurricane Sandy.
Overall, demand for Brooklyn continues to grow, as it becomes a first-choice destination, not a second choice for those priced out of Manhattan.
Also boosting Brooklyn’s rental market: an improving job market and tight credit conditions for would-be buyers of apartments and homes.
“The entire borough is seeing an increase in rental prices,” Guerra said.
“Demand in Williamsburg is enormous,” he added. “There is supply under construction that is not available yet.”
Across the bridge, Manhattan rents, while still sky high, are cooling.
A separate report from Citi Habitats, showed the average Manhattan apartment rented for $3,368 in November, down $76 from October and up $53 from last year.
It was the third consecutive month-over-month drop.
Manhattan’s vacancy rate in November was stable at 1.38% vs. 1.39% in October.
The financial district saw rents fall 12% from October as Hurricane Sandy may have soured tenants’ appetite for the neighborhood.
Citi Habitats President Gary Malin called the FiDi rent drop a “temporary situation.”
“Owners know that a vacant apartment is their worst enemy, so temporary rent reductions to attract clientele are par for the course,” he said.