Residential rental prices reached a six-year high in the fourth quarter of 2013 in Brownstone Brooklyn, with a nine percent increase over the same period last year, according to the Brownstone Brooklyn and Beyond Rental Report released by Ideal Properties Group.
On average, residents spent $2,801 per month to rent an apartment in Brownstone Brooklyn. For the first time since 2008, two-bedroom units rented for a monthly average that surpassed the $3,000 mark.
“Rental prices increased rapidly with inventory dwindling throughout 2013 and a number of factors attracting new residents to Brownstone Brooklyn, including more job opportunities in technology, film and the arts, and improved shopping around Barclays Center, Borough Hall and other retail corridors. A growing desire for historic homes and neighborhood experience were also strong contributors,” said Aleksandra Scepanovic, Managing Director of Ideal Properties Group.
“Given these ongoing trends, we believe the rental market recovery and price increases in Brownstone Brooklyn will likely persist in 2014.”
Prospect Heights and Gowanus experienced the highest rental price growth in the fourth quarter of 2013 from the previous year, posting 19 percent and 13 percent increases, respectively.
Almost all unit types increased by over $100 per month on average in the fourth quarter of 2013 from the previous year, with the highest jump registered by three-bedroom apartments, which rented for an additional $394 per month on average.
The established rental communities of Boerum Hill, Brooklyn Heights, Carroll Gardens and Park Slope increased in prices nearly uniformly from last year, all posting double-digit gains (10 percent, 10 percent, 11 percent and 10 percent, respectively).
Three-bedroom units posted the highest increase of all unit types in the fourth quarter of 2013, rising 11 percent over the previous quarter.