Brooklyn Multifamily Report – Summer 2021

One of the hardest-hit rental markets just one year ago, the borough is now in full recovery mode.
Brooklyn rent evolution, click to enlarge
Brooklyn rent evolution, click to enlarge

Compared to a year ago, the Brooklyn multifamily market is in a much better condition. As of June, rents were up 2.1 percent on a trailing three-month basis to $2,794, well above the $1,482 national average. Renters have benefited from long-term government support and increased personal savings rates, enabling them to seek out higher-cost apartments after some of the uncertainty waned.

READ THE FULL YARDI MATRIX REPORT

Brooklyn sales volume and number of properties sold, click to enlarge
Brooklyn sales volume and number of properties sold, click to enlarge

Leisure and hospitality recorded the sharpest decline last year, but is steadily beginning to rebound, as tourists feel comfortable to travel again. According to data released by the New York state Department of Labor in mid-July, the number of jobs in tourism-related industries is up 46 percent from last year. However, the sector is experiencing a shortage of labor in the metro, as many former employees were pressed to pivot toward a new career to survive the health crisis.

Only 449 apartments across three Brooklyn properties came online in the first half of 2021, accounting for a fifth of what developers completed over the first six months of last year. Moreover, multifamily transactions were also severely impacted by the pandemic, with no deals completed for properties of 50-plus units in 2021. And the investment market is likely to face new challenges going forward.

Read the full Yardi Matrix report.