Williamsburg Apartment Demand Falls Ahead Of L Shutdown: Report

WILLIAMSBURG, BROOKLYN — As the L train shutdown looms, demand for apartments in Williamsburg is declining, even as rental demand in the rest of the city rises, a study by StreetEasty shows. The study shows that landlords are becoming more and more likely to compromise on rent prices as they try to fill a near all-time high of vacancies.

The numbers, based on user and market data, shows that rental demand in Williamsburg is down 1 percent since last October, making it the only neighborhood that saw a decline in demand over the last year.

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The drop isn't necessarily a "sign of the end of the times," StreetEasty concludes, but does make it seem likely that the upcoming 15-month transit halt is to blame for making the neighborhood a city outlier. The city's overall economy is at its highest point in 10 years and similarly priced neighborhoods are seeing rents rise, the study shows. Greenpoint and Bushwick saw demand grow by 1 and 2 percent, respectively over the last year.

Williamsburg and Bushwick did share an increase in supply of apartments for renters looking to move to North Brooklyn, though, the study showed. As of the end of October, well past the end of the peak rental season, there were 72 percent more rentals on the market in Williamsburg than in October 2017. In Bushwick, inventory more than doubled (up 110 percent) in the same period.

StreetEasy said these numbers are highly unusual given that the number of available rentals typically falls by this point in the year. Instead, there were nearly 6,000 apartments on the market in Bushwick and Williamsburg. Less than 20 percent of this inventory is attributable to development built after 2010.

Both of these factors mean that landlords are more willing to cut prices as they try to fill vacancies.

StreetEasy reported that the total share of rent cuts rose above 30 percent during the first half of October and was very close to an all-time high after dipping briefly during the summer months. The share of rent cuts has only risen higher than 30 percent one prior time, for a brief period in the winter of 2017. One two-bedroom apartment, that went on the market last April, dropped its price nearly 20 percent, the study showed, although it was still above Williamsburg's median price point.

"It’s now clear that even though there’s still interest in North Brooklyn among StreetEasy renters, the incredible run-up in inventory — combined with uncertainty about just how bad the transit situation will become in April — means renters have some negotiating power," the study said.

Photo by Ciara McCarthy/Patch.