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New York City
Report: Brooklyn housing prices leapt by 35% in 2005
More Coverage
Average apartment sales prices, 2005
Feb 8, 2006
By Chris Korman and Justin Rocket Silverman
Special to amNewYork and amNewYork staff writer.
February 8, 2006
There's great news for realtors but bad news for anyone looking to snag a home in Brooklyn: The borough's hot housing market has spiked the average cost of an apartment by 35%.
And for the second straight year, Dumbo -- a once little-known waterfront slice of Brooklyn -- emerged as the borough's most expensive place to buy an apartment in 2005, according to a report released yesterday by the Real Estate Board of New York.
The average cost of a Brooklyn apartment reached $478,000 in 2005. And Michael Slattery, REBNY's senior vice president of research, expects the rapid growth to continue this year.
"After a brief pause in the market after 9/11, the recovering economy and low interest rates have driven this positive growth almost nonstop," Slattery said. "The strong Manhattan market has certainly been a boom for Brooklyn as well."
Here's a look at how the market has changed in two Brooklyn neighborhoods:
Dumbo
Not since the completion of the Brooklyn Bridge in 1883 has this area of Brooklyn seen such explosive change. But whereas the bridge symbolized the end of Dumbo's importance as a commercial hub, the new ballooning real estate prices suggest a new, upscale life for the neighborhood.
"There is no product like this anywhere in Brooklyn," said Toby Klein of Two Trees Management. "We feel like SoHo. The population down here is probably an exact replica of SoHo."
According to the REBNY report, the average apartment in Dumbo sold for $1,255,000 last year.
Two Trees has already sold more than half of the 259 luxury condos in its new property at 70 Washington St., and Klein said almost all her customers are young professionals.
It's a far cry from the artists' lofts that used to define the neighborhood. And for some longer-term Dumbo residents, the REBNY report simply confirms what the presence of Starbucks and ABC Carpet have already suggested -- gentrification in Dumbo has come to stay.
"Rising rental rates in Dumbo have a ripple effect throughout Brooklyn," said Jennifer Levy of the tenants' rights group South Brooklyn Legal Services. "When people can no longer afford one neighborhood, poor residents in other parts of the borough also get pushed farther out."
Fort Greene
The cost of buying an apartment in Fort Greene rose 81.9% last year, more than any other neighborhood profiled in the REBNY report.
"Fort Greene was always the bastard stepchild," said Terry Robinson, a broker for the Corcoran Group. "It was the epicenter for the displaced. But it's a terrific neighborhood with so much character."
Robinson believes the market will level off, leaving plenty of units to accommodate the many working-class families who live in the area.
Juliana Brown, who helped compile the report and is the executive director for the Corcoran Group's Fort Greene office, does not see the new development as a threat to the charcter of the neighborhoods.
"So many of these places in Brooklyn have historic significance," she said. "That won't be replaced. You won't see big stores coming into those areas. They'll be maybe on the fringes, but that makes it very convenient."
Central Brooklyn's stature has risen significantly since plans were announced to develop a new arena, the future home of the NBA's Nets, and 17 luxury skyscrapers near the Atlantic Avenue subway stop. That area is bordered by several neighborhoods including Park Slope, Boerum Hill, Prospect Heights and Fort Greene.
(jsilverman@am-ny.com)
Chris Korman is a contributor to amNewYork; Justin Rocket Silverman is a staff writer.
New York City
Report: Brooklyn housing prices leapt by 35% in 2005
More Coverage
Average apartment sales prices, 2005
Feb 8, 2006
By Chris Korman and Justin Rocket Silverman
Special to amNewYork and amNewYork staff writer.
February 8, 2006
There's great news for realtors but bad news for anyone looking to snag a home in Brooklyn: The borough's hot housing market has spiked the average cost of an apartment by 35%.
And for the second straight year, Dumbo -- a once little-known waterfront slice of Brooklyn -- emerged as the borough's most expensive place to buy an apartment in 2005, according to a report released yesterday by the Real Estate Board of New York.
The average cost of a Brooklyn apartment reached $478,000 in 2005. And Michael Slattery, REBNY's senior vice president of research, expects the rapid growth to continue this year.
"After a brief pause in the market after 9/11, the recovering economy and low interest rates have driven this positive growth almost nonstop," Slattery said. "The strong Manhattan market has certainly been a boom for Brooklyn as well."
Here's a look at how the market has changed in two Brooklyn neighborhoods:
Dumbo
Not since the completion of the Brooklyn Bridge in 1883 has this area of Brooklyn seen such explosive change. But whereas the bridge symbolized the end of Dumbo's importance as a commercial hub, the new ballooning real estate prices suggest a new, upscale life for the neighborhood.
"There is no product like this anywhere in Brooklyn," said Toby Klein of Two Trees Management. "We feel like SoHo. The population down here is probably an exact replica of SoHo."
According to the REBNY report, the average apartment in Dumbo sold for $1,255,000 last year.
Two Trees has already sold more than half of the 259 luxury condos in its new property at 70 Washington St., and Klein said almost all her customers are young professionals.
It's a far cry from the artists' lofts that used to define the neighborhood. And for some longer-term Dumbo residents, the REBNY report simply confirms what the presence of Starbucks and ABC Carpet have already suggested -- gentrification in Dumbo has come to stay.
"Rising rental rates in Dumbo have a ripple effect throughout Brooklyn," said Jennifer Levy of the tenants' rights group South Brooklyn Legal Services. "When people can no longer afford one neighborhood, poor residents in other parts of the borough also get pushed farther out."
Fort Greene
The cost of buying an apartment in Fort Greene rose 81.9% last year, more than any other neighborhood profiled in the REBNY report.
"Fort Greene was always the bastard stepchild," said Terry Robinson, a broker for the Corcoran Group. "It was the epicenter for the displaced. But it's a terrific neighborhood with so much character."
Robinson believes the market will level off, leaving plenty of units to accommodate the many working-class families who live in the area.
Juliana Brown, who helped compile the report and is the executive director for the Corcoran Group's Fort Greene office, does not see the new development as a threat to the charcter of the neighborhoods.
"So many of these places in Brooklyn have historic significance," she said. "That won't be replaced. You won't see big stores coming into those areas. They'll be maybe on the fringes, but that makes it very convenient."
Central Brooklyn's stature has risen significantly since plans were announced to develop a new arena, the future home of the NBA's Nets, and 17 luxury skyscrapers near the Atlantic Avenue subway stop. That area is bordered by several neighborhoods including Park Slope, Boerum Hill, Prospect Heights and Fort Greene.
(jsilverman@am-ny.com)
Chris Korman is a contributor to amNewYork; Justin Rocket Silverman is a staff writer.
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