New York—Brooklyn has an inventory problem, allowing for inflated rental rates. According to the MNS November 2012 Brooklyn Rental Report, the New York City borough cannot keep up with the demand for multifamily units, with studios especially lacking. The study shows that the rental rates increased a total of 1.16 percent across all unit types; however, studio rental rates decreased .83 percent since October this year.
MNS, a residential brokerage and sales marketing firm, runs this study monthly to reveal the fluctuations in the Brooklyn rental market. It is based on a cross-section of data from available listings that are priced under $10,000.
This month’s report reveals that the greatest month-to-month changes in rental rates were seen in Bedford-Stuyvesant for studios, which were up 6.7 percent (approximately $149); Prospect Lefferts Gardens for one-bedroom apartments, which were up 15.4 percent (approximately $216); and Park Slope for two-bedroom apartments, which were up 2.3 percent (approximately $78).
“While leasing activity typically cools off around this time of the year, the Brooklyn rental market continues to remain extremely active with two bedrooms showing the largest increase in pricing this month,” Andrew Barrocas, CEO of MNS, says.
The report also shows that those who live near the new Barclay’s Center might experience an advantage. Renters in the Boerum Hill area, which neighbor the Barclay’s Center, have seen a rise in rent, with a .3 percent increase in November.
In terms of rental prospects, the Prospect Lefferts Gardens area were the most affordable of any Brooklyn neighborhood at $999 a month; however, one-bedroom rates increased by 15.4 percent since October.
Additionally, Dumbo, Brooklyn’s most expensive neighborhood, saw studio rates drastically decrease, dropping $700.