Brooklyn Multifamily Report – August 2023
Rents continue to outperform in New York City's most populous borough.
Brooklyn’s multifamily market outperformed national figures in a few key areas. As of June, rates in the metro were up 4.0 percent year-over-year, 220 basis points above the U.S. average. The borough’s rates rose to $3,338, while the national average reached $1,726. The overall occupancy rate in stabilized assets across Brooklyn was a strong 98.7 percent, 370 basis points above the U.S. figure.
New York City added 209,600 jobs in the 12 months ending in April. The figured marked a 3.7 percent improvement year-over-year, 80 basis points above the national average. All but two economic sectors gained jobs during this period. Meanwhile, New York City’s unemployment rate was 5.4 percent in April, well above the national 3.4 percent rate.
In the first half of the year, the borough recorded a single transaction, bringing its multifamily investment total for the year to $101 million. This came on the heels of a solid 2022, when multifamily sales volume reached nearly $850 million, far outpacing the borough’s $550 million average for the prior decade. While investment was at a standstill, construction activity in the borough continued, with 18,879 units under construction. An additional 41,500 units were in the planning and permitting stages, although deliveries this year amounted to only 135 units.