Photo: Robert Clark
When it was announced in July 2016, some real estate experts speculated that the L-train shutdown could negatively impact the North Brooklyn housing market.
But even with the shutdown still a little more than a year away, the effect seems to be minimal — at least so far, according to a new report released yesterday by the listing site StreetEasy.
Immediately following the July 2016 announcement, home prices fell in the North Brooklyn submarket, which includes Williamsburg and Greenpoint. Between July 2016 and February 2017, home prices declined by 7.7 percent, or $89,000, on average.
During the period following the announcement, prices hit a low of $1,105,081 in October 2016, but surged upwards again in 2017.
Over the last year, home prices in North Brooklyn grew by 6.2 percent in 2017, while prices grew by just over 2 percent in the rest of the borough over the same period. Home prices in North Brooklyn are currently the highest on record, at $1,165,030.
“North Brooklyn sales prices increased after their brief decline — even in the face of stagnant growth elsewhere in Brooklyn and Manhattan — suggesting that the L shutdown may have sent deal-hungry buyers to the area and ultimately driven prices up,” says StreetEasy in the digital release.
Listing inventory in North Brooklyn decreased by over 9 percent following the shutdown announcement — despite growing by 16 percent in the rest of Brooklyn.
“Inventory in North Brooklyn dropped for all price levels and all home sizes, whether studios or multiple-bedroom units — even luxury inventory fell by 8 percent in Williamsburg and 13 percent in Greenpoint, despite much new construction,” StreetEasy says.
And despite record-high prices, the North Brooklyn housing market remains a “hot” one, and sellers are taking advantage of this.
“In response to the high demand for inventory, the proportion of price cuts in North Brooklyn decreased by almost 3 percent, while remaining unchanged in greater Brooklyn. The decline in price cuts is concentrated in Williamsburg, where price cuts decreased by more than 4 percent — the time for bargains here is over,” StreetEasy notes.
While the immediate impact was short-lived, and inventory remains low while prices are on the rise, the shutdown has had very little impact on the North Brooklyn rental market.
Over the last year, rents throughout Brooklyn — including North Brooklyn — have grown at the slowest pace on record. Brooklyn rents grew by 0.4 percent year-over-year in the fourth quarter of 2017, the highest growth rate since the shutdown was announced.
“Renters on the fence about living or staying in Williamsburg in 2019 are encouraged to wait and see what happens,” StreetEasy says.
Click here to read the entire release.