Brooklyn and Queens rents rise as incentives decline: Elliman

Seasonal demand and softer sales are strengthening rental markets, according to an Elliman report
By Meenal Vamburkar | May 09, 2019 11:30AM

The rental market is heating up in the outer boroughs.

Brooklyn and Northwest Queens saw declines in incentives in April, one indication of a strengthening market heading into the summer season, according to Douglas Elliman’s latest market report. A boost in rentals was also attributed to the recent softness in the sales market.

In Brooklyn, new leases rose 7.2 percent, marking the fourth time they have risen year-over-year in the last five months. The median net effective rental price rose 2.8 percent to $2,762.

“It’s the same pattern we’re seeing in Manhattan,” said Jonathan Miller, author of the report and CEO of appraisal firm Miller Samuel. “It’s not quite the same price growth but we are seeing growth.”

The market share of concessions fell to 38.1 percent from 51 percent a year earlier. In Queens, median net effective rent rose 3.2 percent to $2,731. The share of concessions fell to 45.3 percent from 65.1 percent.

In a separate report, Citi Habitats noted that in Brooklyn, Dumbo was the most expensive neighborhood, with a median rent of $4,575, followed by Downtown Brooklyn, at $3,695. Bedford-Stuyvesant, with median rent of $2,500, was the least expensive Brooklyn neighborhood tracked.

“Landlords were feeling confident in April,” said Gary Malin, president of Citi Habitats. “Instability in the sales arena, coupled with the seasonal increase in demand, caused the vacancy rate to fall to the lowest level in nearly four years.”