Real Estate Chat

Inner City Migration December 29, 2010

As maintenance and mortgage costs increase many Manhattan apartment leasers and owners are looking to downsize and or save money. Increasing Co-Op board fees projected between 5 to 8% as well as endless maintenance fees to maintain those highly coveted Pre-War buildings, are causing many Manhattanites to assess their housing situation and move out, out of Manhattan that is. The borough of Brooklyn is quickly becoming a hot migration point for who are dying to escape the escalating rent, co-op board fees, and general maintenance fees.

Neighborhoods such as Williamsburg in Brooklyn were historically blue collar immigrant families settlements. Present day, this neighborhood is attracting celebrities and young professionals because of its comparably less expensive rent, short commute into Manhattan, vast array of restaurants, stores, cultural events, and offer of more spacious living. Be weary though, the demand for more moderately priced apartments a short subway ride into Manhattan is beginning to cause rents in these neighborhoods to rise.

Yet, the overall trend for 2010 in the real estate market was individuals looking for alternatives. Renters and buyers were looking for ways to save money and trying painfully hard not to compromise on convenience and quality. Renter and buyers were and are using a fine tooth comb to scour the market for better prices without losing amenities, even if it means moving across the bridge. While overall, Manhattan is still more expensive than Brooklyn—with a median rent in the month of January around $3,100 in comparison to $2,050. The trend of young people flocking to less expensive neighborhoods, in turn creating high demand and ultimately increased pricing in these neighborhoods, is proof that in this troubled economy people are looking for alternatives, and have a vested interest in getting more for their money.