The outpacing of rents is examined by Nery Alaev.

1. Brooklynrents begin to outpace Manhattan
The New York City borough once known for being the cheaper, Bohemian twin to the bustling
central island has begun to see rents rise at a faster pace according to an article in MarketWatch.
Today, I’m going into the detail of the report and outlining the changes in the market.
Year-on-Year rates
Rents in Brooklyn, though cheaper, are increasing at a faster pace than Manhattan. For example,
the median asking rent for a Brooklyn apartment in August 2015 increased 4% from the same
period last year, to $2,650.
Compared to a 3.3% increase to $3,460 for the same rental in Manhattan, it’s clear that Brooklyn
has outpaced its neighbor to the east. The increases were reported by StreetEasy Market
Reports, a unit of Zillow Group. Brooklyn’s vacancy rates were lower than Manhattan’s,
according to Alan Lightfeldt, a data science expert from StreetEasy.
A reason for Brooklyn’s growth is that jobs, particularly in technology and start-up fields, are
moving to the borough. According to Alan Lightfeldt, it’s now possible to live one’s life in Brooklyn
alone, as opposed to commuting into Manhattan to work while residing in a Brooklyn
neighborhood.
Buying prices jump
According to StreetEasy, homes in Manhattan and Brooklyn alike sold for at least 100% of the
seller’s asking price. Prospect Park in Brooklyn saw, on average, 5% above the initial asking
price for homes.
While the rises may be high, actual prices will decrease in Brooklyn by 1.6% according to Alan
Lightfeldt at StreetEasy – this is due to oversupply.
ESN Investments GmbH
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and
development of commercial and residential property in Germany and Austria