Due to soaring prices but stabilizing rents in Bedford-Stuyvesant, investors are increasingly leaving the neighborhood.
Investors are no longer able to make a quick profit by selling and re-selling properties in what was heralded as Brooklyn’s newest destination, according to the New York Daily News. The change could slow down the neighborhood’s high rate of gentrification, according to the newspaper.
The median price for a vacant parcel of land has soared to $808,000 from $235,800 in 2013, according to the Daily News. The median price for a multifamily building is up to $975,000 from $652,500 since two years ago. Meanwhile, rents in the area are stabilizing. Monthly rent in the area fell by 1.8 percent in January, according to the newspaper.
A few years ago, investors were quick to pick up Victorian-era townhouses that line the streets of Bed-Stuy, renovate them and sell them for hefty profits. In Bed-Stuy, however, this seemed to have lead to a bubble.
“It seems like the Bed-Stuy market has topped out,” GFI Realty Services president Michael Weiser told the newspaper. “Returns have come down tremendously. That ocean has been fished out.” [NYDN] — Claire Moses