Brooklyn Multifamily Report – May 2023
The borough still has one of the country's highest occupancy rates.
Brooklyn’s multifamily market recorded a slight improvement in 2022, but ongoing economic challenges such as scarcer debt and inflation have made their mark. Year-over-year rent gains reached 4.3 percent as of March, to $3,269. Demand remained strong, with occupancy in stabilized assets still one of the strongest in the nation, at 98.2 percent as of February, reaching 310 basis points above the U.S. figure.
After a year of strong gains, New York City job growth cooled slightly to a 5.0 percent expansion as of December, though still remaining above the national 3.7 percent rate. This accounted for 289,500 jobs gained across all sectors in 2022. According to the New York City Economic Development Corp., the city’s private sector has returned to 99.5 percent of pre-pandemic job levels. Education and health services led job gains, with 86,700 jobs added, or a 5.6 percent expansion. Leisure and hospitality remained a strong performer, adding 66,300 jobs, or 11.7 percent. New York City’s unemployment rate was 5.4 percent in February, 190 basis points higher than the nation and 120 basis points above the state.
Brooklyn had a slow first quarter, with only 17,169 units under construction as of March. Last year’s completions were still below the five-year average, though starts were up and the borough’s stock expanded by 2.0 percent. Investment activity has been low so far this year, though it ramped up last year, with $778.5 million in sales, more than the previous two years combined.