In Biggest Dip in Nearly a Decade, Brooklyn Home Prices Drop Yearly 2.7%

With the coronavirus pandemic taking a toll on Brooklyn residential real estate demand, resale prices of condo, co-op, and townhouse units in the borough experienced their biggest drop in nearly a decade, according to StreetEasy, a Zillow Group affiliate focused on the New York City market. 

According to a market report released by StreetEasy, the 2.7% year-over-year fall in its Brooklyn price index was the largest drop in the market in nine years. The Brooklyn index, which has seen year-over-year dips for each of the past 12 months, fell again to $686,285 in May, driven largely by falling prices at the top and bottom of the market. According to Thursday’s report, prices of luxury homes, which make up the top 20% of the market, were off by 2.9%, and prices in the bottom 20% of the market dropped 4.5%. 

“Before the pandemic, prices in Brooklyn were relatively stable compared to the declines we were seeing in Manhattan, as buyers seeking affordability looked to the outer boroughs,” said StreetEasy Economist Nancy Wu in the report. “Now, many searching for an affordable home are hitting the pause button as their employment and financial situations remain strained. The combination of the drop in demand and higher inventory levels has led to the rapid price decline we’re now seeing – welcome news for buyers searching for a home within their budget.”

StreetEasy, which tracks data in all five New York City boroughs, but only published reports on the markets in Brooklyn, Manhattan, and Queens, also saw resale prices fall in Manhattan and Queens in May. In Manhattan, the price index was off by 2.0% to $1,085,843, the smallest decline in over a year. In Queens prices dropped 1.1%–the first year-over-year dip since 2013–to $507,262. StreetEasy found that rents in Brooklyn and Queens rose, but at a slower rate than in past years and Manhattan rents remained flat at $3,273 due to an uptick in rental discounts.