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More than half of Brooklyn rentals had concessions in October
They hit their second highest market share in the borough in more than eight years
Brooklyn concessions have now increased for the 33rd month in a row and hit their second highest market share in more than eight years, according to the latest Douglas Elliman report.
The share of deals in the borough with concessions hit 50.2 percent in October, up from 43.1 percent in September and 19.3 percent last October. The size of the concession also increased year over year, rising from 1.2 months to 1.5 months.
Year-over-year net effective median rent ticked up as well, increasing from $2,760 to $2,789 for a 1.1 percent increase. Prices at new developments increased much faster than prices at existing rentals, which skewed the numbers higher overall, according to the report.
The number of new leases in Brooklyn rose 20.4 percent year over year to hit 1,440, while the listing inventory went down 20.2 percent to hit 1,802. Units spent 37 days on the market from their original listing date, down from 39 days last year.
The share of new deals with concessions in Northwest Queens hit 58.2 percent in October, an increase from 55.6 percent in September and 48.3 percent from last October. This was the second consecutive month that concessions rose in the borough after they fell for two months in a row in July and August.
The borough’s net effective median rent dropped by 1.1 percent year over year to hit $2,786, while the size of concessions ticked up from 1.3 to 1.4 months.
The number of new leases in the borough increased by 35.9 percent year over year to hit 318, and the listing inventory went down by 21.6 percent to hit 451. This was the fourth month in a row with a large gain in new leases year over year.
Units spent 24 days on the market, down from 30 days last October, and new developments dominated the borough, accounting for almost 43 percent of all activity.
Jonathan Miller, CEO of Miller Samuel and author of the report, said the increasing concessions in the boroughs largely represented more of the same.
“It’s just this continued grind,” he said. “Concessions are continuing to rise, so that’s the story.”