Brooklyn rents grew at an average rate of nearly 6.58 percent last year, compared with 0.37 percent in 2010, according to MNS’ first annual Brooklyn Rental Market Report for the year. One-bedroom average rents saw the largest increase, at 9.59 percent, while studios had the most modest gains at 4.13 percent.
Average rental prices for Brooklyn studios have increased by only $47 per month from August 2009 to December 2011, and remain firm around $1,700 per month, the report says. But overall 2011 showed very steady growth in Brooklyn, with December 2011 showing the highest average rental prices in the borough since MNS began keeping track, in August 2009. Pressures from Downtown Brooklyn and Williamsburg, where inventory is tight, resulted in growth of 30 and 20 percent, respectively, in the Crown Heights and Clinton Hill neighborhoods. The year also saw a lot of previously stalled inventory hit the market, which bolstered average rental prices in places like Williamsburg, the report says.
MNS projects 1,250 units hitting the market in Williamsburg in the next 18 months, and 1,500 homes coming online in Downtown Brooklyn. According to MNS, these additions will not dampen the market, but encourage even more renters to seek housing in those neighborhoods. — Guelda Voien