The Real Deal New York

Brooklyn is the least affordable housing market in US: report

San Francisco and Manhattan take second and third place

December 04, 2014 12:55PM

bk-affordable

Daren Blomquist and 45 Montgomery Place in Brooklyn

Brooklyn is the least affordable housing market in the U.S., according to RealtyTrac data.

A Brooklynite would need to spend 98 percent of the median income to afford a home there. The median sales price in the borough hit a record $587,515 in the third quarter this year, according to Miller Samuel data. Nearly 70 percent of Brooklyn residents are renters. Brooklyn saw a 6 percent year-over-year climb to $2,858 in median rent, Miller Samuel data showed. 

RealtyTrac reviewed property sales in 475 counties nationwide between January and October. San Francisco and Manhattan followed Brooklyn as the second and third worst housing markets for affordability, Bloomberg News reported.

A seven-bedroom Park Slope townhouse sold for $10.8 million last month, making it the third priciest sale in Brooklyn’s history and the most expensive ever in that neighborhood. [Bloomberg News]Mark Maurer

  • Oouch

    Because Manhattan middle and upper middle class has moved to Brooklyn, driving up the median and taking their equity out of Manhattan, which is increasingly for the transient and uber.

  • David Brown

    Statistical anomaly inasmuch as Brooklyn historically had a large lower income rental population who can not afford the high cost neo-Manhattan construction. For the potential home owners moving over the bridge from Manhattan it is affordable.

  • New Yorker

    This report only takes into consideration a few neighborhoods of Brooklyn, mainly the most expensive ones (and Bay Ridge, for some reason). More than half of Brooklyn is not represented and is much more affordable.

  • Edward Johnson

    If you make $1,000/month and your rent is $1,000/month but section 8 pays $700 month of it – and you have a roommate you don’t tell section 8 about and they give you $500/month to live there then is your apartment affordable? You get paid $200/month to live there. But this article and others like it fail to consider subsidies in calculating the real cost of housing.

    • Marc

      This is how government causes high rents and inequality.

  • Charles Dale

    The median income for a single New Yorker living in any of the five boroughs is $51,100 a year. This article states that the median rent for Brooklyn is $ 2,858 a month and the median price of a home in Brooklyn is $587,515. Neither the median rent or median price of a home in Brooklyn is affordable for the median income of $51,100 a year. I live in Rego Park Queens and I see luxury co-ops and condos being built for around $300,000-$500,000. I see very few rentals being built but the ones that are, are expensive. Studios going for $1,200 a month on the cheap end. 1 bedroom $1,800-$2,200 a month and 2 bedroom even more. A friend of mine who lived in New York till he was 18 and now lives in Georgia, looks at the prices of apts. and houses here and uses the word”madness” when he see the prices. He is right. There is no “affordable” housing being built for the median income people making $51,100 and less. There are people in homeless shelters with jobs and cell phones but can’t find affordable housing. My mother and father moved into the apt. I am in now in 1975 for a 2 bedroom, gas and electric included on the 14th floor, corner apt. and the rent was less than $600 a month. Nice neighborhood, Rego Park,close to transportation, schools and stores. Affordable housing in any of the five boroughs is a huge problem. San Francisco is worse.

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