The rapid rise of million dollar homes in Brooklyn

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This is a contributing article from Trulia

With all the celebrities, Wall Street mavens and foreign investors, you’re likely aware of the high-end market in Manhattan. But with Brooklyn getting pricier at a rapid pace, the booming borough could give Manhattan a run for its money someday.

Neighborhoods with million-dollar growth

Just four years ago, Bedford-Stuyvesant’s share of million dollar homes was a low 1.7 percent. Over four years, that small slice has grown to over half the neighborhood’s homes. Up 54.8 percentage points, seven-digit listings in Bedford-Stuyvesant now encompass 56.5 percent of the market.

Greenwood is number two in the million-dollar surge, growing from 8.4 to 56.7 percent since May 2012.

In Crown Heights, just over 50 percent of the homes are worth a million or more. Today’s market is overwhelming compared to four years back, when only 2.6 percent of properties in the neighborhood were that costly.

Greenpoint has held its fair share of costly homes for a while. Nevertheless, the number of million dollar homes has grown 47.1 percentage points in four years – from just under a third (29.2 percent) to over three-quarters (76.3 percent).

At number five, 56.9 percent of Borough Park’s homes are worth over a million. In May 2012, just 9.9 percent were at that mark — a 47 percentage point difference.

Brooklyn rentals

With so many million-dollar properties overtaking Brooklyn’s hottest neighborhoods, signifying massive home value growth, renting might be the only option for some. The share of affordable Brooklyn apartments, from studios to two-bedrooms, dropped 6.6 percentage points since last year.

The priciest neighborhood for one-bedroom rent is Vinegar Hill, where 90.7 percent of rentals cost more than $3,000 per month. Downtown/Dumbo is pricey, too, with 55.6 percent of one-bedrooms at that rate.

At third most expensive, the median rent in Brooklyn Heights for one-bedrooms is $3,000 per month.

Over half of one-bedrooms in Brooklyn are over $2,000 per month, and around 30 percent are over $2,500 per month. Even 15.1 percent of one-bedroom apartments cost a whopping $3,000 per month or more.

Only 2.2 percent of one-bedrooms in Brooklyn are listed over $4,000 per month. In Manhattan, almost 20 percent of one-bedrooms cost that much.

Need more space? The majority of two-bedroom rentals in Brooklyn are over $2,000 per month, while almost half (45.2 percent) are over $2,500. About one-quarter are $3,000 or more per month, while 10 percent cost $4,000 and up.

Jennifer Riner is a reporter for Inman who also writes on assignment for Trulia.


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