Fundamentals Return To Seasonal Averages
The borough’s multifamily market started the year on strong footing, with rent growth and demand close to seasonal levels, notes the latest Brooklyn multifamily market report. The borough recorded year-over-year rent growth of 5.0% as of March, the second-highest rate among the top 30 metros tracked by Yardi Matrix. The only area with higher gains was Manhattan, at 5.2%. Meanwhile, the U.S. figure stood at 0.9%, according to the national multifamily market report. Occupancy in Brooklyn rose to 98.7% as of February, while the figure dropped across most of the country over 12 months.
New York City unemployment was 5.1% as of February, somewhat unchanged from 2023 figures, and higher than the nation’s 3.9% figure. The city’s labor pool posted a 1.9% expansion last year, adding 61,300 net jobs. Education and health services led growth, with 114,600 positions. A few sectors recorded considerable declines, including information (26,000). As part of ongoing economic revitalization, Brooklyn will receive $100 million from the NYC Economic Development Corp. for a new Climate Innovation Hub. The project is intended to boost local climate tech startups and is projected to have $2.6 billion in economic impact over the next decade.
Brooklyn developers completed 1,078 units in the first quarter, the equivalent of 0.7% of existing stock. Brooklyn’s pipeline was the largest out of all boroughs tracked by Yardi Matrix, with 22,349 units under construction as of March, along with an additional 35,000 units in the planning and permitting stages.
Read the full Yardi Matrix Brooklyn Multifamily Market Report: May 2024
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