There were 420 Brooklyn new development contracts signed in Q1 2022 totaling $730 million based on last asking prices, according to Brown Harris Stevens Development Marketing’s (BHSDM) Q1 Brooklyn New Development Analysis. This contract activity marks a 56 percent increase year-over-year (270 contracts signed in Q1 2021) and 16 percent increase quarter-over-quarter (362 contracts signed in Q4 2021). Contract volume is up 22 percent quarter-over-quarter and 80 percent year-over-year.
In Q1 2022, the average contract price based on last asking price was $1.74 million, and the average size of a Brooklyn new development contract signed was 1,208 square feet, slightly down from the previous quarter’s record high of 1,220 square feet. The average price-per-square-foot based on last asking price was $1,436, down five percent from Q4 2021 ($1,518 per square foot).
“By price point, 41 percent of contracts signed were between $1-2 million, a stark difference from previous quarters, when the up-to-$1 million price point has historically had the highest proportion of contracts signed across the borough,” said Stephen Kliegerman, president, BHSDM. “As elevated product is delivered and the margin between Manhattan and Brooklyn narrows, the borough continues to show its strength as a standalone market.”
Contracts signed above $2 million have also been on an upward trajectory. Q1 2022 had 28 percent of contracts signed above $2 million; Q1 2021 saw 21 percent in this price point; and Q1 2020 had just eight percent of contracts signed above $2 million.
At the high end, there were 16 contracts signed above $5 million in Brooklyn new development, including 13 at Olympia Dumbo (30 Front Street).
Q1 2022 Real Inventory
Brooklyn had 2,083 new development units in Real Inventory (units actively marketed and shadow inventory that has not yet been released.) This includes 436 new development units actively on the market in Q1 and 1,647 units in shadow inventory. The actively marketed units have an average price-per-square-foot of $1,588 and an average asking price of $1,933,166.
Q1 Brooklyn New Development Visuals
BHSDM’s analysis by bedroom count, unit count, neighborhood, price point and price-per-square-foot, can be found here.
These stats analyze what sold and what was listed in the Brooklyn new development market between January 1, 2022 and March 31, 2022. This data tracks new development projects with 10 or more units, defined as those new to market and currently selling sponsor units, excluding conversions that converted prior to January 2017. Buildings that have fully sold out of sponsor units are not included, even though they may have recently been built. Resale data is not included in this report. All listings were compiled as of March 28, 2022. All contract signed activity is based upon publicly reported contracts and last asking price. Shadow inventory is defined as inventory from actively marketed projects that has not yet been released.
The neighborhoods analyzed include the following and are grouped by area for market reporting: Area 1: Greenpoint, Williamsburg, Bushwick, Bedford-Stuyvesant; Area 2: Dumbo, Brooklyn Heights, Downtown Brooklyn; Area 3: Fort Greene, Clinton Hill, Crown Heights; Area 4: Boerum Hill, Cobble Hill, Carroll Gardens, Red Hook, Gowanus; and Area 5: Prospect Heights, Park Slope, Flatbush, and Prospect Park South.