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Bushwick Rents Up 23 Percent This Year Amid New Development, Report Says

By Serena Dai | September 11, 2014 8:47am | Updated on September 12, 2014 5:37pm
 The luxury rental on Dekalb Avenue includes rehearsal spaces, a screening room and pinball.
Colony 1209
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BUSHWICK — Average rents for apartments in Bushwick have spiked 23 percent in the past year due to new luxury developments — a jump second only to Crown Heights, according to a new Brooklyn rental report.

The average monthly cost of a one-bedroom in Bushwick went from $2,160 last August to $2,647 this August, according to the report from real estate firm MNS, which focused on neighborhoods from Greenpoint to Prospect-Lefferts Gardens and Bay Ridge.

Several factors can explain the increases, said Andrew Barrocas, CEO of MNS — including the addition of new developments like Colony 1209 on Dekalb Avenue.

New inventory often drives average prices up, and August tends to be a busier month for the young demographic that loves to rent in Bushwick, he said.

Plus, the proliferation of new stores, bars and restaurants beyond the L train adds to the demand for a "really nice, well-done product," he said.

"When you see new amenities coming, it’s just the beginning," Barrocas said. "More residential will come into the area."

Meanwhile, average Williamsburg rents increased just 2 percent from last August to this August. One-bedroom prices went up 8 percent, from $3,015 in August last year to $3,255 this year.

But don't be fooled by the low increase — the rental market in Bushwick's northern neighbor is still "very strong" and not close to cooling, Barrocas said.

Many new luxury buildings debuted last year with rental incentives like one month free to initially attract renters, he said. People who first lived in the buildings paid below retail price to live in the apartments.

Taking the incentives into account, the actual increase in average rents in Williamsburg could be closer to 8 percent overall, he said.

"Williamsburg as an area has matured quite a bit in the last couple years," Barrocas said. "People are building into this market and are able to achieve very good prices."

The MNS Brooklyn rental market report includes data from rental listings under $10,000, with "ultra-luxury" properties taken out.