The Real Deal New York

Price gap between Manhattan and Brooklyn is shrinking

Median rent in Dumbo and Williamsburg now tops Manhattan average
September 12, 2014 01:55PM

Moving to Brooklyn is no longer the go-to cheaper housing option for New Yorkers. According to a report from StreetEasy, the price gap between the two boroughs is growing smaller, and some Brooklyn neighborhoods are already topping Manhattan sales levels.

StreetEasy, looking at median sale and rent prices in all of Brooklyn’s 49 neighborhoods to Manhattan’s median prices over the last five years, found that 28 of the borough’s 49 neighborhoods outpaced Manhattan’s five-year growth in sales price.

In Dumbo — one of the most expensive neighborhoods in the entire city — prices increased 61 percent between 2010 and 2014. “Considerable” price growth was also seen in outer sections of the borough, such as Old Mill Basin and Bergen Beach.

Dumbo, Columbia Street Waterfront District, Manhattan Beach and Carroll Gardens all topped Manhattan’s median sales price in 2014.

Rental prices also saw rapid growth over the last five years, StreetEasy found, with 29 Brooklyn neighborhoods outpacing Manhattan’s five-year rent growth rate. Gowanus, Bushwick, Red Hook and Bedford-Stuyvesant saw the steepest increase in rent since 2010, according to the report.

Dumbo’s median sale price is $1.5 million, while Manhattan’s is $890,000. Dumbo and Williamsburg are the only two Brooklyn neighborhoods where median rent is more expensive than in Manhattan.

Many other neighborhoods — including Park Slope, Boerum Hill and Cobble Hill — are also closing the price gap. — Claire Moses