Rents on Track, Completions Improve
Brooklyn closed the first half of the year with a strong performance, considering current economic challenges, notes the latest Brooklyn multifamily market report. Average advertised asking rents were up 0.3% on a trailing three-month basis, to $3,634, as of June. New York City was the top-performing metro for year-over-year rent growth, at 4.8%, with the Brooklyn figure standing at 3.9%. Meanwhile, the national rate was 0.6%, according to the U.S. multifamily market report. Overall occupancy for stabilized assets in Brooklyn was down 30 basis points year-over-year, to a still healthy 98.6%, as of May.
New York City’s unemployment rate was 4.4% as of May, according to preliminary data from the Bureau of Labor Statistics. This was up 20 basis points year-over-year and 40 basis points above the national figure. Over a 12-month period ending in April, NYC gained 107,300 net jobs, representing a 1.1% rate of growth—30 basis points behind the U.S. Major projects in Brooklyn continue to boost the borough’s strong small-business landscape. Revitalization efforts at Christian Cultural Center in East New York hit a milestone earlier this year when the development partners submitted final approval plans for the first two phases, estimated to cost $570 million.
Developers completed 2,447 units in the first half of the year, which was a 36.4% year-over-year improvement. The borough had 25,233 units under construction and an additional 33,000 units in the planning and permitting stages.
Read the full Yardi Matrix Brooklyn Multifamily Market Report: August 2024
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