While some may find it surprising to learn that the borough now has neighborhoods with average rents well above a number of areas in notoriously expensive Manhattan.
According to a report done by MNS, the average rent in Manhattan last month was $3,836 -- this is comfortably below Brooklyn's Dumbo neighborhood, which ended December 2014 at $4,237.
It is certainly still true that the highest rent neighborhoods in Manhattan dwarf Brooklyn's priciest, but the middle of the market is now looking more affordable, relatively. In December 2014, the average rent for a 'no doorman' apartment in the East Village came out to $2,874 -- which makes it barely more expensive than Greenpoint's $2,790, and cheap in comparison to $3,205 in Williamsburg.
In turn, those debating renting in Brooklyn vs Manhattan should no longer assume that they are saving money when they shop around in BK. In fact, according Gary Malin of Citi-Habitats, many Manhattan landlords are offering incentives -- such as paid broker fees -- in record numbers to combat the high demand across the river.
Looking Beyond Boroughs: It's The Neighborhood That Matters
The real story behind this data may be that it is time for renters -- and investors, if they have not already -- to start ignoring borough labels, and instead focus on individual neighborhoods. As the numbers show, a high demand area -- like Dumbo, or Long Island City, for example -- can see its rent prices rise in spite of its borough's overall reputation and averages. This seems to indicate that, in actuality, people are starting to pay more attention to their property's immediate surroundings than the brand of its overarching borough.
Consequently, if you are searching for value, it may make more sense to hone in on the next big neighborhood -- maybe even in Queens or the Bronx -- before a similar story plays out in the coming years.
