This month, The Real Deal talked to residential brokers with expertise in the Manhattan and Brooklyn rental markets to better understand the impact of an influx of newcomers on the rental market, and found that, not only low-income residents, but also regular, not-so-wealthy people soon may not be able to afford New York City as their home.
First of all, the city is being bought and sold high on the international market: Would-be condo buyers are being priced out of the market by international buyers who can afford the skyrocketing prices brought on by a shrinking inventory of real estate.
Furthermore, areas of Brooklyn that were once considered “off-limits,” are becoming a destination of choice, just by virtue of it being in Brooklyn and where there’s still space to build (unlike in Manhattan). In fact, brokers are reporting that Brooklyn is outpacing Manhattan in regards to rental prices, where in some cases the Upper East Side is actually a cheaper option.
“Renters looking to Brooklyn for more space and a better deal are turning around and coming back to Manhattan,” Eric Hamm, senior managing director at Citi Habitats, told The Real Deal.
“The notion of moving to Brooklyn to save money has ended, and price-shocked renters are finding better deals on the Upper West/East Side and Upper Manhattan than in many of the ‘prime’ Brooklyn neighborhoods.”
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