Photo: Robert Clark
Overall apartment prices remained mostly flat in April in Brooklyn and Manhattan, despite a bump in each borough’s listing inventory last month. However, renters in several of the city’s hottest neighborhoods saw a decrease in their ‘hood’s average rent, according to newly released market reports from New York brokerage MNS.
Average rental prices in Manhattan increased 0.17 percent to $3,948.76 in April, up about $7 from the previous month. However, in the pricey Tribeca neighborhood, the average price for one-bedroom apartments dropped almost 8 percent last month from March. This was the largest price change last month in the submarket. MNS says this change was likely due to a decrease in the neighborhood’s inventory.
“New developments continue to have interesting effects on their respective neighborhoods. High levels of activity, transitions from rent protection to market rate rents, and conversions can swing average prices in Manhattan,” says MNS.
Manhattan’s rental inventory increased 4.1 percent last month. There were 10,377 total apartments on the market in the borough in April, an increase of 406 units from the previous month. However, some neighborhoods continued to deal with tight inventory — Soho had four one-bedroom apartments on the market in April, compared to the Upper East side which had 374.
“More inventory will continue. Certain parts of the Manhattan market have an influx of new inventory; in certain parts there are even excess,” MNS CEO Andrew Barrocas told BuzzBuzzNews.
But the more desirable projects in desirable neighborhoods will have the most success, he adds.
Meanwhile, in Brooklyn the average apartment price decreased 0.01 percent last month to $2,759.63 from March, a $0.36 monthly change. Since last year, prices in the borough have fallen 0.5 percent, according to MNS data.
The average price of a one-bedroom apartment in the Crown Heights neighborhood increased 4.5 percent — the largest change in the submarket for the borough last month. MNS cites “high levels” of activity at The Dean, a new rental building, that likely affected the neighborhood’s overall average price. The Dean had 10 apartments on the market last month.
Brooklyn’s inventory increased 2.1 percent in April. There were 5,046 total apartments on the market in the borough last month. While this was a monthly gain, it was about half of the gain recorded in March, when inventory grew by nearly 6 percent from February. Williamsburg had 16.4 percent of the borough’s listings in April — the largest share of all Brooklyn’s neighborhoods.
Similar to Manhattan’s housing market, new developments continue influence the overall Brooklyn market, according to MNS.
“New developments are exciting for the borough of Brooklyn, as they transform neighborhoods and bring new living opportunities to all New Yorkers,” says MNS.
Luxury new developments in Brooklyn have had a direct impact on the market’s overall pricing.
“They increased prices, since the price points at Pierhouse and similar developments were high, which brought overall numbers up. And, there is a lot of demand for the mid to high-teens in Brooklyn,” Barrocas told BuzzBuzzNews.