The Real Deal New York

Rents in Brooklyn up 10 percent annually

Bed-Stuy gets in on the act, showing steadily rising rents in 2012
June 14, 2012 02:30PM

Brooklyn rents ticked up 2 percent in May and now sit 10 percent higher than they did during May 2011, according to a rental market report released today by brokerage MNS. Studio apartments in the borough now cost an average of $1,791 per month, a 10.8 percent annual increase, one-bedrooms go for $2,354 on average, an 8.3 percent jump from May 2011, and two-bedroom units average $3,077 per month, up 11.6 percent year-over-year.

While Williamsburg, Dumbo and Brooklyn Heights remained the priciest neighborhoods — although the report noted that studios were relatively inexpensive in Brooklyn Heights, averaging just 6 percent more than the borough as a whole — MNS spotlighted Bedford-Stuyvesant as a neighborhood to watch. Rents rose 6.5 percent between April and May and the area has seen steadily rising rents since the beginning of the year. Studio rents increased 16.5 percent since January to $1,281, rents for one-bedrooms hiked 21.7 percent to $1,680 and two-bedroom rents increased 4.4 percent to $2,170 during that time.

“Although rents are still 45% percent less than Williamsburg rents, we anticipate tracking a shrinking price gap between the two neighborhoods,” MNS said in its report, noting that new developments and new retail businesses are populating Bed-Stuy.

Overall, rents for studios and two-bedroom apartments are rising at a faster rate than one-bedroom units in Brooklyn. In May, studios and two-bedrooms posted 2.4 percent and 2.1 percent rent gains, respectively, while one-bedrooms ticked up just 1.1 percent. — Adam Fusfeld