New York City’s real estate market has been cooling, and a side effect of that is the gradual nudging down of rental prices in hot neighborhoods. In Brooklyn, which for years has seen torrid growth and soaring rents, the average rent has fallen year over year, according to data from Rentcafe.
Still, strong demand is keeping prices perched at lofty levels — and rapidly gentrifying neighborhoods are slowly transforming areas that were once dominated by working class residents. Constantine Valhouli, co-founder of the real estate analytics firm NeighborhoodX, told CNBC that Brooklyn’s status as a housing hot spot remains a safe bet, thanks to robust growth in certain neighborhoods.
That growth has been driven by certain factors, including the fact that living near Manhattan no longer means what it used to. As a result, places like Sheepshead Bay, Crown Heights, Downtown Brooklyn and even Coney Island are drawing interest from major developers.
“Ten or fifteen years ago, Brooklyn was oriented towards jobs based in Manhattan,” Valhouli said. “Today, that is no longer the whole picture, as there are significant employment clusters in Downtown Brooklyn and Sunset Park.”
In the face of a moderating New York City real estate market, CNBC recently spoke to several real estate professionals about which Brooklyn neighborhoods will stay on the rise. Median prices cited are compiled from NeighborhoodX data.