Brooklyn is the second-largest borough of New York City, with 71 square miles. It is the city's most populous borough, with 2.5 million residents according to the 2010 census (ahead of Queens' 2.2 million and Manhattan's _______), 30.7% of the City’s total population.
Brooklyn was an independent city until it was consolidated with New York City in 1898. If it were independent today, it would be the fourth largest city in the United States after the rest of New York City, Los Angeles, and Chicago.
Brooklyn offers, in general, _______ space, yards, and lower density ________. The market is ____% townhouses, ____% apartments (___% condo and ___% co-op), and ____% freestanding houses. [GET DATA FROM REAL DEAL DATEBOOK]. And there are key differences between real estate in the two boroughs. In Manhattan, it is the homes near Central Park that command the highest prices, while in Brooklyn, waterfront homes fetch the greatest premium. In addition, the most expensive properties in Manhattan are condos — with some now asking more than $100 million — but historic townhouses are Brooklyn’s priciest housing type, according to The Real Deal.
Prices range from highs of $_____/sq.ft or $____/sq.ft. in Brooklyn Heights or Dumbo to as low as $____/sq.ft. in [troubled] areas such as Brownsville, East New York, Flatbush, among others. Since 2008, the spread between the median residential rents of Manhattan and Brooklyn has closed, from more than $1,000 per month to around $200 per month. At this rate, median rents should cross in the next couple of years. “The basic premise for what is happening in Brooklyn is that it’s being transformed from Manhattan’s stepchild that was a more affordable place to live to a competitor,” says Jonathan Miller. CITE SOURCE
According to The Atlantic
Canarsie is one of several Brooklyn neighborhoods with declining property values. Most of the Brooklyn neighborhoods that have seen substantial increases in property values are directly across the river from lower Manhattan, or near Prospect Park, the only exception being
Coney Island to the far south.
Between 2004 and 2012, housing prices rose 174% in
Williamsburg, from $269 per square foot to $736. During the same period, housing prices rose 63% in
Prospect Lefferts Gardens, from $235 per square foot to $382. Even properties in
Gowanus have risen over 50% during this same period, despite the canal's Superfund status.
However, moving east towards
Brownsville, Canarsie, and
East Flatbush property values have declined by double digits. The three neighborhoods that have seen the biggest declines are
Cypress Hills, East Flatbush, and
Flatbush. When you look to the traditional working class and middle class neighborhoods of
Midwood, the appreciation is much more modest, in the single digits.
The map shows how localized the neighborhood revival turns out to be. Despite the well-publicized rise in Brooklyn property values, more than half of Brooklyn's neighborhoods have actually seen their property values grow much more modestly or even decrease."
According to Zero Hedge
as of 4Q2013, 70% of Brooklyn property sales were to hedge funds, investors. Only about 30% were actual end users. the key reason for the recent, stimulus-fueled and quite transitory bounce in house prices in assorted markets." In other words, the latest artificial move higher in the housing market had nothing to do with an "improving" economy (and implicitly, everything to do with the epic injection of liquidity by all global central banks and chinese loan creation). In other words, just over two thirds of the "bounce" in the Brooklyn housing market has - much to the chagrin of hipsters everywhere - been due to the REO-to-Rent program and various other initiatives to make Wall Street America's biggest landlord, as well as foreigners parking hot cash in the US. A handful of large private equity and real estate investment firms, including the Blackstone Group and Colony Capital, have bought billions of dollars’ worth of single-family homes in some of the areas most affected by the housing collapse. The goal for these Wall Street investors is not to buy and flip the properties for a quick profit à la real estate bubble of the early 2000s. Instead, they are hunting for steady, dividend-like returns they believe can be earned by renting out the homes.
While Brooklyn Heights began to revive in the 1960s and 1970s, in part for its historic houses and its proximity to the Financial District, it was not until the mid 1990s that rising housing prices in Manhattan forced people to consider
Williamsburg. There had been a psychological barrier about crossing the East River into a different borough, despite the fact that Williamsburg was only [one/two] stops on the L train away into Brooklyn.
Dumbo did not become hot until ____, and even
Greenpoint only began to get hot in 20____. The buzz surrounding Crown Heights, Bed Stuy and Bushwick began around _________.
Since the 1990s, Brooklyn has transformed from the affordable alternative to Manhattan into an equally desirable (and expensive) destination. The "South Brooklyn" neighborhoods - those closest to Manhattan (including
Carroll Gardens, and
Boerum Hill) - have been among the first to gentrify. (As an aside, "South Brooklyn" is geographically misleading: historically, it referred to an area that was in the southern portion of the city
of Brooklyn rather than the entire borough. So, the South Brooklyn neighborhoods are geographically in northwest Brooklyn.)
Brooklyn's recovery has been uneven - some neighborhoods have seen declining housing prices. Capital new York
reported that five of the ten poorest census tracts were in Brooklyn, including two in
Brownsville. The city's poorest census tract is in
Coney island, where the average income was $9,500 in 2011. Neighborhoods including
East Flatbush and
East New York have seen populations grow as residents are priced out of gentrifying neighborhoods closer to Manhattan. A more detailed list of neighborhoods with declining property values can be found
Declining neighborhoods may decline further, as they become attractive as centers of social services.
The Brooklyn Bureau
reported that high-poverty communities have cheap spaces that are financially enticing to social-service providers. Most homeless shelters are in low-income, high-unemployment neighborhoods of the Bronx and Brooklyn,
East New York had nine shelters in 2011, but six of Brooklyn’s 18 community districts had even more:
Bedford-Stuyvesant had 25 shelters and
Brownsville had 19 (also,
Ocean Hill, and
Industrial zones are meant to preserve space for industry, rather the conversion to hotel, retail, or residential uses.
According to the New York Times
, hotels, retail, and residential uses are encroaching on the industrial zones established in 2004. A recent New York Industrial Retention Network LINK report says that although residential conversion is prohibited in 16 areas in the outer boroughs LIST THESE (does this have an adverse effect on property values?
, non-industrial businesses are setting up shop. The industrial zoning was intended to keep real estate prices low, but as of 2009 industrial rents are up to $18 per square foot, which is double the price in 2000.
* CREATE A MAP OVERLAY OF THE INDUSTRIAL ZONES TO THE INDIVIDUAL NEIGHBORHOODS, AND ADD THIS TO THE INDUSTRIAL LIST