Earlier this year, a few areas in Brooklyn made Time Out’s list of the top 10 hottest NYC neighborhoods for 2022. Apartments in Brooklyn are selling like proverbial hotcakes, but what’s behind the current property sales boom the borough is enjoying?
This year’s hottest neighborhoods are the areas that saw a massive surge in interest among buyers, sellers, and renters in 2021, which means continued interest in those neighborhoods this year. Find out more below.
2022’s Hottest Brooklyn Neighborhoods
The following Brooklyn areas were named among 2022’s hottest neighborhoods:
- Red Hook
- Fort Greene
There are several possible reasons for the increased interest in Brooklyn apartments for sale in those areas. For example, it’s relatively easy to get to midtown Manhattan from Dumbo and Fort Greene.
Another reason is how lifestyles are changing due to the ongoing pandemic, and people have different needs – like a wishlist of more square footage and outdoor space – which explains why Bushwick went from being in ninth place on last year’s list to seventh place on this year’s list.
The interest in Gowanus is due to the recent approval of a huge rezoning plan. The plan will see 8,500 new apartments added to the neighborhood by 2035. 3,000 affordable units will be among those Brooklyn apartments for sale.
Of course, there is more to the Brooklyn property boom.
Another factor making Brooklyn more popular is space – both indoors and out. Many Brooklyn neighborhoods have a more open, spacious, residential feel which is attractive to all types of residents (and especially pandemic pet owners). Many New Yorkers got pets to cope during the pandemic, and now their pandemic puppies need room to run and grow – therefore, many are making the move to Brooklyn where high rises are scarce and parks are plentiful.
Something for Everyone
Traditionally, Manhattan is famous for its skyscrapers and townhouses, while Brooklyn is known for loft spaces and brownstones. Nowadays, you can find almost any type of inventory in either borough – closing the gap between Manhattan and Brooklyn. Many people who once moved to Manhattan for a certain type of real estate are now finding that they can get the same in Brooklyn (and sometimes for less).
Taxes Are Less
One big financial advantage to buying in Brooklyn vs. Manhattan is the property taxes. Taxes in New York are determined as a percentage of the current market value of a property.
The property taxes for Brooklyn apartments and brownstones are usually much lower than comparable Manhattan properties. Property taxes tend to be much higher in Manhattan than in Brooklyn since the properties are assessed very differently, and the higher the market value, the higher the tax burden.
A Shift Is Happening
The prices of apartments in Brooklyn have been rising steadily since 2012, and that upward trend continued last year. This year was also predicted to see a strong sales market, and so far, those forecasts have proved correct.
A few years ago, it was possible to find any number of family-sized homes on the market for two to three times the annual median household income. The $200,000 two-bedroom apartments for sale in Brooklyn and the $400,000 townhouses of those years are now a very rare find indeed.
In the last quarter of last year, the median sale price of Brooklyn luxury apartments set a record for the sixth time in seven quarters. Take a closer look, and you’ll find that record pricings in the borough have been happening since 2015, especially during the last five years. While the pandemic has changed many aspects of life, what hasn’t changed is the borough’s market trajectory.
For the quarter ended December 31, 2021, the average closed sale price was $1,178,237, which was an 11.7 percent increase on the average closed sale price for the same quarter in 2020. The median was $941,000, which was a 7.5 percent increase year-over-year. There was an especially strong demand for one- to three-family townhouses, which ended the quarter with an average price per square foot of $652, which was a 4.8 percent increase year-over-year. One-fifth of sales sold above the asking price.
These days, the buyers of Brooklyn Heights apartments (and of those in other neighborhoods) are more likely to be someone with a high income, a large down payment, or both. Among them are high-wage earners in tech, finance, and the arts, those who have family help or who have inherited money, and those who have bought and sold at least once – especially if the home they sold was a pricier property in Manhattan.
That said, it’s not only a question of affordability. A large number of people have left Manhattan for the Brooklyn area of NYC over the last couple of years in the hope of escaping the density and crowding, which also has played a role in the sales boom. With the recovery of the economy, that boom is set to continue.
Hoping to find an apartment in Brooklyn? Contact Platinum Properties and let us help you find a new home.