The Real Deal New York

Does a hot market mean Brooklyn has lost its cool?

Brooklyn’s well-to-do hipster establishment is setting out for more bohemian enclaves
August 23, 2014 01:00PM

With Brooklyn’s home prices and rents rapidly approaching Manhattan heights, even the borough’s well-to-do hipster establishment is getting priced out.

Long-time Brooklynites and newcomers alike are increasingly leaving the borough for cheaper and more bohemian domiciles, according to the New York Times.

For example, Jeff Huston and his wife, Lisa Medvedik-Huston recently left their apartment in Williamsburg after they became discouraged by the cost of housing, as well as the arrival of chain stores and tourists.

“I can’t tell you how many listings said, ‘cash only,’ ” Huston, who considered buying everything from a $500,000 apartment to a $900,000 fixer-upper rowhouse, told the Times. “That was a wake-up call.”

Huston and his wife ultimately realized that they had to leave their beloved Brooklyn behind, paying $550,000 for a 2,000-square-foot loft in a converted suitcase factory in Jersey City Heights.

“We weren’t sure there was anyone like us in the neighborhood,” he said. Then, he added, a Brooklyn-style coffee shop arrived. “The line down the street was all people like us. We could have been in Williamsburg. It was all, like, expats.” [NYT]Christopher Cameron

  • Tin Tin

    Many north brooklyn residents are also heading south to Bay Ridge. Bay Ridge just welcomed a chipotle and Panera bread.

    • slopemope

      oh yeah, chain stores i’m there. lol. Might as well move next to a Jerzee mall if you’re that pumped about cookie cutter amenities.

  • Crian Bashman

    The article doesn’t bring up real estate taxes at all. Jersey City and Hoboken have exorbitantly high real estate taxes (Hoboken more so), whereas in NYC the brunt of the taxes are felt by renters. Brownstones in Park Slope have tax bills that are a quarter of what a similar property would be in Hoboken. That plays a significant role in the price discrepancy. Is Hoboken really that much cheaper if you are shelling out $24k a year in taxes versus $6k you would be in Brooklyn?

    • slopemope

      that’s not exorbitant. The difference in your example at a 20x multiple would be $360k. Rounding errors when considering a negotiation in a $3mm house. However if you asked me if i would rather live in a prime Park Slope 17′ or, say 612 Garden Street in Hoboken for $3 million I might agree that the value is suspect. Although if you are a republican, maybe you would in fact opt for Hoboken.

  • Kj

    Bronx is the next stop….as a rental broker, I’m seeing a lot of clients from northern manhattan and brooklyn who’s rents spiked at lease renewal. They’re thrilled with the size of the apts and layout. But most of all the price.

  • ralphpetrillo

    Pendulum is swinging!