Luxury Developments in North Brooklyn Cause Dip in Rental Prices for Older Units
North Brooklyn (Williamsburg and Greenpoint) has a median asking rent of $3,100/month, maintaining its title as the most expensive rental market in Kings County, but taking a 3% dip year-over-year. What's happening is new luxury developments are coming in, increasing inventory, and causing a drop in prices for older buildings. In turn, landlords of older buildings are renovating and redeveloping to get higher rents, pushing out long-term tenants in the process, DNAInfo reports. This means even more inventory, which means tenants have more negotiating power. This is especially the case with one-bedroom apartments, which were up 149% in Greenpoint in June, to 192 units. Median asking rent for June was $2,400/month, down 4% year-over-year. Asking rents for Williamsburg's pre-2010 one-bedrooms fell 1.3% in June to $2,895/month. Meanwhile, apartments built after 2010 saw asking rents rise 1.3% to $3,435/month. With the addition of luxury developments like Greenpoint's Eleven33 Manhattan (pictured), apartment hunters are raising their expectations, seeking top-of-the-line finishes like elevator buildings and stainless steel appliances. [DNA]
