Is Brooklyn A Good Place To Invest In Property?
New York City’s most populous borough, Brooklyn is where you’ll find the iconic Brooklyn Bridge, Coney Island, a vibrant mix of cultures, and arguably some of the best pizza in the city – but is it a good place to invest in property? Are apartments in Brooklyn a good buy?
The short answer to the question about whether Brooklyn is a good place to invest in property is, “yes.” Find out more as we unpack the answer below.
Brooklyn Stands Firm During Pandemic
During the height of the COVID-19 pandemic, Brooklyn stood firm and resilient while many other parts of the city were hard-hit. The borough has fewer commuters and office buildings than its neighbor, Manhattan. As a result, fewer retail outlets went out of business, and not as many business areas emptied.
The price of houses and apartments in Brooklyn increased, whereas other areas saw property prices stay more or less the same or decrease. Beyond that, apartments for rent in Brooklyn remain in high-demand among newcomers. The relatively high number of outdoor and green spaces also offered residents a breath of fresh air, when urbanites in other areas faced serious bouts of cabin fever.
Brooklyn’s attraction certainly was felt in Manhattan, where many younger residents who had wanted to become first-time homeowners were happy to cross the bridges, head through the tunnels, and purchase homes in the borough. There’s no doubt that many of them made the right move, as the value of their newly-purchased townhomes has appreciated in value by more than 25% since March 2020.
Robust Rental Market
2021 saw the borough’s rental market grow even more robust than it had been. New lease signings for houses, apartments, and rooms for rent in Brooklyn increased year-over-year for the 16th consecutive month, and that’s not all.
According to Jonathan Miller at Miller Samuel, listing inventory for Brooklyn apartments for rent decreased at its highest-ever annual rate, while net effective median rent rose annually at its fourth-highest rate recorded for the month of December. Rent increases may not always have been welcomed by tenants, but they undoubtedly left property owners smiling. Such robust growth in the market is nothing but good news if you’re looking to invest in property that you can list as one, two, or three-bedroom apartments for rent in Brooklyn.
Big Investment In Brooklyn
It’s not only the residential property market in Brooklyn that is enjoying an extended bout of good health. The borough is also set to benefit from some big investments.
Wall Street firms are making significant commitments and large property purchases. October 2020 saw the completion of the Brooklyn Tower, the borough’s first supertall skyscraper. The building, which cost $750 million to construct, rises an impressive 1,066 feet. New York City celebrated the opening of only one other skyscraper during the pandemic, namely One Vanderbilt at Manhattan’s Grand Central Station.
A Bright Future For Brooklyn
Residential property owners, tenants of apartments in Brooklyn, and Wall Street firms aren’t the only ones investing in what will be a bright future for the borough. The White House may also make a significant difference, thanks to President Biden’s infrastructure plan.
The plan will see large amounts of capital channeled into diverse, lower- and middle-income areas such as Brooklyn. The idea is to up investments in public transit and urban public housing rehabilitation with the goal of reconnecting neighborhoods and metropolises of which they’re part.
The borough has always felt distinct from the rest of New York City. The coming years will see it continue to transform into a sub-city characterized by a distinct way of life. As a result, we think Brooklyn continues to be a relevant investment consideration.
Platinum Can Help
If you’re looking to invest in Brooklyn, Platinum Properties is here to help. We’ll connect you with a seasoned agent who knows all of the available inventory (and even some off-market opportunities) in the area. Your agent will schedule showings and take you on property tours until you find a great investment opportunity. Send us a message to be connected with a Platinum Properties agent.
