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Brooklyn Rents Surged in '11; Crown Heights Leads Way

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Average Brooklyn monthly rents surged 6.6% in 2011, to $2,322, and more affordable Crown Heights led the way in that growth as renters migrated inland looking for deals. The data is part of MNS's annual year-end report that compares fluctuations in monthly rental data. Average rents in the Crown Heights neighborhood soared a dizzying 35.0%, 36.2%, and 22.6% for studios, 1BR and 2BR apartments, respectively. As brokers continue to advise deal seekers to head one more subway stop past a currently hot neighborhood, Bushwick and Bed-Stuy are positioned to experience possibly similar growth in 2012.

Growth in the average rent of 1BRs was the highest, moving up 9.6% to $2,211 a month. Rents on 2BRs and studios were up 6.0% and 4.1%, respectively, but there could be a lot of potential for more growth in studio prices in 2012 due to tight inventory. Years of sustained growth in neighborhoods like DUMBO mean that its rental prices are now higher on a per-square-foot basis than in the average rents in Manhattan. MNS's report concludes by saying that any increases in inventory to Brooklyn's rental stock are unlikely to provide relief for renters, as more demand should continue to flow in from Manhattan, where rent hikes aren't exactly on vacation either.

· Rental Market Reports [Curbed]