Great, now Brooklyn’s rents are through the roof, too.
Rents in the borough are holding steady at a high level, even as Manhattan rents continue to skyrocket, according to reports from Prudential Douglas Elliman.
Hot Brooklyn neighborhoods, including Williamsburg, Park Slope and Brooklyn Heights, are commanding rents as high, if not higher, than rents in Manhattan.
The median rent for a Brooklyn apartment in September was $2,350, down 2.1% compared with last year, according to Prudential Douglas Elliman, which just began tracking rentals in the borough.
“Prices are at or above pre-recession levels,” Michael Guerra, executive vice president of the firm’s Brooklyn division told the Daily News.
“I don’t have enough inventory to show. I am really tight.”
Penny, a 53-year-old sales and product development exec, is close to signing a lease for a small two-bedroom apartment in a new building near Prospect Park. Her rent will be close to $3,000.
She said she did not expect to pay that much, but agreed to do so because of the apartment’s proximity to the park, the Brooklyn Academy of Music and the Brooklyn Museum.
“That was our high end, which we did intend to approach,” Penny said.
Fueling Brooklyn’s rental boom is the tight credit environment, which is keeping would-be buyers out of the market. Also stoking the market: strong job growth in the city.
“Brooklyn is a close second behind Manhattan,” said Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles the Prudential Douglas Elliman reports.
“Employment in the city is rising, and the rental market is responding.”
Brooklyn’s strong rental market means the borough is no longer an obvious alternative for New Yorkers getting priced out of Manhattan’s sizzling rental market.
September showed few signs of easing for Manhattan renters with the median rent reaching $3,195, up 10.2% from last year. But there could be some relief on the horizon.
According to a separate report from Citi Habitats, the average Manhattan apartment rented for $3,453 in September, a scant $8 less than the average in August.
That marked the first time since December 2011 that the Manhattan market has showed a month-over-month decline.
At the same time, the vacancy rate in the third quarter of 2012 widened to 1.22%, up from 0.97% in the second quarter and 0.93% in the third quarter of 2011.