Mind the gap: Brooklyn rents catching up to Manhattan

Difference in June was $500, but don't expect lines to cross anytime soon

New York /
Jul.July 11, 2014 05:30 PM

Brooklyn rental prices may be rising, but they’re not a shoo-in to catch up with Manhattan just yet.

The difference between median rental prices in Manhattan and Brooklyn was $500 in June, according to Douglas Elliman’s monthly rental report. That’s up from a record low of $210 in February. But even at $500, the gap between the boroughs is far narrower than in February 2009, when there was a $1,465 difference. At that time, the median rent in Manhattan was $3,695 to Brooklyn’s $2,230.

Jonathan Miller, president of appraisal firm Miller Samuel and author of the Elliman report, said the gap started to narrow in 2010.

The compression picked up last summer during a period of record sales in Manhattan. “The sales market and rental market are, in many ways, competitors,” he said. “Rental demand started to weaken a bit because the fence sitters, even with tight credit, poured into the market.”

As a result, Manhattan rents dipped even as Brooklyn’s median rents continued to increase. “It accelerated the compression between the two markets,” Miller said.

He pointed out that in May and June of this year, the spread hovered at $500, indicating that prices aren’t on a collision course, despite earlier predictions.

In June, the median rental price rose 3.3 percent to $3,300 compared with Brooklyn, where median prices rose 2.3 percent to $2,800.

“I suspect we won’t see the lines cross anytime soon,” Miller said.


Related Articles

arrow_forward_ios
John Giannone and Jac Credaroli (Credit: iStock)

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

Douglas Elliman is coming to Texas
Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Ramona Singer (Getty)

“Real Housewife” trades reality TV for selling real estate

“Real Housewife” trades reality TV for selling real estate
Howard Lorber (Getty, iStock)

Elliman reports $12M profit in third quarter after a year of heavy losses

Elliman reports $12M profit in third quarter after a year of heavy losses
(iStock)

Manhattan home sales improving as suburban hot streak continues

Manhattan home sales improving as suburban hot streak continues
(iStock)

Dead weight: A breakdown of NYC’s rental listing glut

Dead weight: A breakdown of NYC’s rental listing glut
Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...