Brooklyn Rental Market Analysis For June 2023
Record-High Rents Slow Lease Activity Versus May and Lead to Surge in Listings
June lease activity increased 7% year-over-year but fell 7% compared with May. Both average and median rents continued to climb. Days on market increased 52% annually as active listings reached a nearly two-year high.
The number of reported signed leases also increased 7% compared to June 2022. Despite the fact that historically June is a more active month than May, the market slowed 7% month-over-month. It is likely that record-high rents diminished lease activity.
June marked the twenty-second consecutive month of average annual rent growth. Average and median rent both reached new record highs, surpassing the prior peak set in May.
Active listings increased 17% compared to May, as some expiring multi-year Covid leases and new building openings increased the figure. Days on market increased 52% annually, bucking the typical seasonal trend of falling days on market during the summer. This was the largest year-over-year increase since March 2021.
Reported signed leases increased annually for all bedroom types. Two bedrooms increased 9% annually, the largest of any bedroom type. June marked the eighth time in nine months that two bedrooms saw annual growth.
Average rent increased year-over-year for all bedroom types for the twenty-first consecutive month. One bedrooms and three bedrooms surpassed their previous peak, while studios and two bedrooms were slightly below their records.
Days on market increased for all bedroom types. Higher prices led to an increase in days on market figures. All bedroom types saw significantly higher figures than the previous June.
Average rent increased in twelve of sixteen neighborhoods. Downtown Brooklyn and Prospect Park South achieved records for average rent. Prospect Heights saw the largest increase in signed lease activity as a new building at 595 Dean Street drove a higher number of leases for the area.