Brooklyn Multifamily Report – Winter 2019
- Mar 27, 2019
Continuing to benefit from Manhattan’s proximity and spillover effect, Brooklyn’s multifamily stock expansion reached a new cycle peak in 2018, with most of the supply geared toward high-income residents. Although the metro added 4,651 units last year, demand remained high, pushing Lifestyle rents up 3.4 percent in the 12 months ending in January.
Adding 46,600 jobs year-over-year, education and health services led New York City employment growth. Meanwhile, professional and business services and leisure and hospitality added 33,200 positions combined. Brooklyn’s appeal as an 18-hour destination continues to grow and tourism is evolving as an increasingly relevant economic driver. Meanwhile, Gov. Cuomo’s $1.4 billion Vital Brooklyn initiative, which includes $700 million for community-based health care and more than $550 million for affordable housing, is moving forward. Meanwhile, the borough ranked second on the list of most desirable places to invest in, per PricewaterhouseCoopers and Urban Land Institute’s 2019 Emerging Trends in Real Estate report.
With roughly 12,150 apartments estimated to come online across New York City this year and factoring in the area’s prolonged housing crisis and regulatory uncertainties, we expect the average rent in the metro to advance 0.7 percent in 2019.