Brooklyn NY. | Excellent Market for Long Term Buy and Hold

[Amanda McAvena]

This 10 year trend report was just released which I thought would be interesting to buy and hold investors. 

I know Brooklyn is often overlooked as too expensive but I am seeing an opportunity in the market right now. Developers are offering incredible incentives, and landlords that are now dealing with tenant payment issues will likely be more motivated to cash out and sell. 

The average growth rate over the last ten years was 7.5% across Brooklyn. For investors, I think the neighborhoods that have the most potential are--Crown Heights, Windsor Terrace, Gowanus and Greenwood. Overall, are there markets that offer better returns? Yes, and I don't recommend Brooklyn if you want to sell after only holding a short time. However, for those looking for consistency and to diversify their portfolios I think Brooklyn is a great option.

[Amanda McAvena]

Hi @Miguel Oliviera. Since so few transactions are happening and there really isn't any data we really won't know the outcome of this pandemic until the city starts to re-open and we can see how people are responding. Based on my client conversations and what I'm seeing in the market I do think certain neighborhoods will be less impacted. My landlords that have rentals where their tenants are in the service sectors are definitely impacted. However, the higher-priced rentals in neighborhoods like Brooklyn Heights and Cobble Hill are receiving multiple applications and renting quickly at $5,200 a month. Even in this current environment, people that have the money are still moving. 

There are also many high paying jobs in NYC so I don't think we'll see a huge migration out of the city. I do think people that have been impacted will move to other neighborhoods and will try to find less expensive housing. As far as the eviction bill, it is very challenging at this time to be a landlord, but there are steps everyone can take to decrease risk. Properly screening upfront and ensuring the tenants have a guarantor or sufficient saving is critical. 

I also think there are going to be deals for investors in the next month or two as landlords that have held properties for many years may be ready to exit the market and cash out on their gains. I'll keep you updated once I have more info on how the market is responding.