Apartment costs continue to be an issue that plagues apartments throughout NYC. Unfortunately for those who are looking for a place to live in the city, it is not restricted to only the borough of Manhattan. In fact, a recent report found that the average price for an apartment in Brooklyn is edging closer to $1 million while townhouse prices have reached $1.1 million.
Housing Costs on the Rise in Brooklyn
During the second quarter of 2017, Brooklyn set some new records in terms of housing costs. In fact, the median price for an apartment increased by 21 percent to a new record high of $795,000. The average sales price also increased by 22.1 percent, drawing it close to $1 million. These price increases represent the third time in the last four quarters that the average price for an apartment in Brooklyn broke its own record. It also represents the fourth consecutive quarter where the median sales prices reached record numbers.
Overall, the median sales price for a condo was $900,000 while the median price for a co-op was $423,000. For single- to three-family homes, the media price was $1,0046,440 while the median sales price for a luxury home increased by 32.6 percent to $2,520,168. For townhouses, the average price was $1,109,602, which comes to $481 per square foot.
Despite the rising costs, Brooklyn is also seeing record numbers in terms of the number of homes sold. Not only have sales increased by 50.7 percent, but the listing inventory also fell by 15.5. The quarter also saw closings at a number of new developments, including those at 500 Waverly, 550 Vanderbilt, Pierhouse and 200 Water Street. New development sales increased by 127 percent with the median price increasing 25 percent to $971,000. The average price increased by 42 percent to $1.37 million.
Queens Sees Rise in Prices
Brooklyn isn’t the only borough that is seeing an increase in its prices. Prices are also on the rise in Queens. The median sales price for a home in the borough increased by 9.7 percent to $510,000, setting records in that borough, too. The average sales price also hit a record high with a 12.4 percent increase to $592,245. Meanwhile, the luxury median sales price increased to $1.2 million. This represents the fourth average sales price record the borough has hit in the last five quarters. It is also the second median price record it has hit in four quarters. Queens also experienced its fastest paced second quarter in the last 12 years with sales increasing by 47 percent.
Landlords Lowering Rents as Concessions Stagnate
While landlords in NYC are still using concessions to help attract new renters, recent trends indicate that an increasing number of landlords are stepping away from concessions and choosing to lower their prices instead. In Brooklyn, for example, the net effective median rent was $2,813 per month, representing a drop for the ninth month out of the last 12. At the same time, the listing inventory has increased year-over-year for the 22nd consecutive month.
While concessions have not gone away completely, they have started to decrease since peaking in January. This is certainly good news for those who are looking to rent a place in NYC.