Brooklyn residents look to Manhattan for homes as rent surge: Report
Manhattan a cheaper option than Brooklyn? In some ways, that's becoming a reality.
While Brooklyn is still one of the hottest neighborhoods in the nation, surging rents are forcing some in the borough to move on up to the East Side and other parts of Manhattan.
A report released Thursday by the real estate group MNS found that the average rent in Kings County rose significantly for all types of apartments, including studios, which jumped 7% from $1,693 in 2011 to $1,812 last year.
The jumps have been so huge in growing neighborhoods such as Greenpoint, Bushwick and Fort Greene that some residents are forced to take their chances in Manhattan to find an affordable home, Andrew Barrocas, the CEO of MNS said.
"There's so much demand there and as a result people are being priced out," he said of Brooklyn.
The average rent for a studio in Greenpoint shot up 34.4% last year while a studio at Fort Green went up 26.9%, the report said. The neighborhood surveyed in the report with the lowest average rent last year was Bay Ridge, with $1,456 while DUMBO led the borough with the highest average rent with $3,850.
Barrocas said Brooklyn's charm hasn't lost its luster especially with advent of the Barclays Center.
"The culture, the environment, there is a buzz there. It's just the beginning of it and that's the interesting part," he said.
For some, however, that buzz isn't worth the price and they are testing their luck in Manhattan market, where average studios rent for $2,258.
Barrocas said the apartment seekers have found some cheaper places in the Upper East Side, east of Third Avenue, the West 50s and the Financial District.
"If you look at the micro level of it they are not moving from Williamsburg to SoHo or TriBeCa, they're moving to pockets where the rents are cheaper price per foot wise," he said.
Brooklyn Borough President Marty Markowitz said he's glad that the neighborhoods are generating a lot of real estate energy but said he doesn't want it to become a luxury destination.
"We have to strike the right balance between making our borough attractive to the 'movers and shakers' as well as to the working class, seniors and families, so that Brooklyn is truly an affordable home to everyone from everywhere," he said in a statement.
Here are the Brooklyn locations that saw the greatest rise in rents in 2012, according to MNS.
Bushwick: Studio rents went up 38.5%; One Bedrooms went up 13.9%; Two-bedrooms went up 9.3%
Greenpoint: Studio rents went up 34.4%; One Bedrooms went up 21.1%; Twob-edrooms went up 11.1%
Bedford-Stuyvesant: Studio rents went up 34.1%; One Bedrooms went up 15.2%; Two-bedrooms went down 1%
Fort Greene: Studio rents went up 26.9%; One Bedrooms went up 19.3%; Two-bedrooms went up 19.7%
Williamsburg: Studio rents went up 13%; One Bedrooms went up 7.3%; Two-bedrooms went up 8.9%