Concessions in Brooklyn Reach Record Numbers

Written By Laura Schier | August 29, 2017 | Published in NYC Lifestyle
2017%2f08%2f23%2f21%2f21%2f19%2f05c5fa77 b224 46a3 8e26 9b303e72e77f%2fbrooklyn

Concessions in Brooklyn reached an all-time high last month, showing a shift in renting trends. Data from Douglas Elliman’s rental market report showed that the month of July saw the highest concessions in residential rental buildings in the seven years that data has been recorded.

Brooklyn has seen an increase in concessions of more than double the amount recorded only a year ago. Data for July showed 22.1 percent of transactions involved concessions, up from 9.5 percent in 2016. According to The Real Deal, this is equal to 1.4 months of free rent. This is something previously not seen in real estate, according to Miller Samuel’s Jonathan Miller; the percentage of concessions in transactions seldom exceeds 20 percent. Manhattan and Queens also experienced increases in concessions during the month of July. In Manhattan, they were involved in 26.5 percent of rental transactions, compared to only 10.8 in July 2016. This equated to 1.3 months of free rent. In northwest Queens, the amount of recorded concessions was 40.8 percent, five times higher than the 7.5 percent recorded last year. This is equivalent to 1.3 months of free rent.

Other changing trends in Brooklyn involved rent prices and inventory. Median rent in Brooklyn has fallen by 1.8 percent from last year to $2,745. Interestingly, this is the third consecutive month of declining rent prices. Inventory has increased for the 23rd month in a row, nearly two full years of recorded monthly growth. Similarly, in Manhattan rental prices experienced a drop of 1.9 percent to $3,350.

This new trend is changing the idea of base rents. Normally, concessions help landlords by keeping down vacancies in their buildings and by preventing the base rent from decreasing. But due to the substantial increase in concessions, base rent is on a decline. There is a chance that this trend is only temporary; in many instances, the volume of concessions has rendered market-rate rents meaningless. Additionally, they have caused growing problems in the long term; many tenants who are given concessions sometimes are unable to afford their apartments on a more permanent basis. But, as stated by The Real Deal, it is not likely that the rate of concessions will slow down anytime soon. With month-over-month increases and major landlords continuing to offer incentives, the trend only appears to be taking off, leaving some to wonder if Brooklyn rental prices will further decrease over the next few months.


Mentioned neighborhoods

Park Slope

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on All data displayed on is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.