Brooklyn is officially the most unaffordable housing market in America

When you hear the word Brooklyn, you probably think hipster.

But you should really think staggeringly unaffordable housing.

As New York Mag and Bloomberg report, the borough has become the least affordable housing market —relative to income — in America.

In Brooklyn, “a resident would need to devote 98 percent of the median income to afford the payment on a median-priced home of $615,000,” Bloomberg reports.

brooklyn-18That’s higher than between 2005 and 2008, at the height of the housing bubble.

The data comes from RealtyTrac, the real estate information company, who find that San Francisco and Manhattan are the second and third least-affordable.

Brooklyn’s wallet-destroying real estate surge comes thanks to a few factors, but the biggest one is the saturation of Manhattan.

The world’s super-super-rich have started to use Manhattan as the new Swiss Bank Account — since 2008, a reported 30% of condo sales in large Manhattan developments have come from overseas. This is pushing the slightly-less-super-rich to Brooklyn.

And they are ready to buy.

Ninety-eight townhouses in Brooklyn sold for over $3 million in 2014, most of which were in the swanky neighborhoods of Brooklyn Heights, Cobble Hill, and Park Slope, where a historic brownstone went for a record-breaking $10.78 million.

Other trickle-down effects are more socially devastating.

“What’s a frustration for ­middle-class buyers amounts to a desperate crisis for poor renters,”reports Andrew Rice in a New York Mag feature on gentrification in East New York. [BI]

1 Comment

  1. A 2BR government subszdiied apartment is not easy to get on such short notice. There is usually a huge waiting list to get into these types of housing. My grandparents got into their govt subszdiied apartment in Chinatown after a 15 year wait! I doubt you can secure one in such short notice.To move all your stuff to NYC, you’d have to hire some movers to truck all your furniture, clothes, electronics, etc The cost to move your stuff could cost up to $ 2000 depending on how much stuff you have. Of course, you’d have to have an address first so they know where to deliver your stuff to, so that means you’d need to come to NYC a month or two beforehand to sign a lease to a place. If you want to go cheap, you can probably take Boltbus or Megabus to get to NYC for less than $ 10. If you have any friends in the city, maybe hit them up for a favor and crash with them for the weekend while you search for an apartment. Make sure you do your homework first and find out which part of Manhattan/Brooklyn you want to move to. Search some rental sites to become familiar with the areas. If you don’t get a rent-subszdiied apartment, expect to pay anywhere from $ 2000 to $ 4000/month for a 2BR apartment in Manhattan .Brooklyn, depending on where you decide can be almost as expensive if you’re in Brooklyn Heights but much less if you go further into Brooklyn. Look around on the internet to see what the going rents are in each neighborhood so you won’t be surprised when you start looking around. Was this answer helpful?

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *