“Is Brooklyn still a deal or should I just stick to Manhattan?” That is the perpetual question on buyer’s minds these days. Yes, Brooklyn prices have surged over the last few years. And yes, the rock bottom deals are gone. But don’t throw the baby out with the bathwater; instead make sure you’re comparing apples to apples. We think that, like us, you will see that Brooklyn isn’t yet on par with Manhattan pricing.
Let’s start with some comparisons. We took the liberty of comparing the most popular Brooklyn to Manhattan neighborhoods, in the hopes of shedding light on borough to borough pricing.
**This study is largely skewed by condos, as they are the ones to accurately measure square footage. Many Brooklyn properties benefit from tax abatements lacking in their Manhattan equivalents…perhaps an unfair comparison.
The first thing you’ll note is that median prices in Brooklyn are lower. Crazy must-buy-now kind of lower? No, but lower nonetheless. The second thing you’ll note is that the average price per square foot across all Brooklyn neighborhoods is also lower, with the greatest difference existing between Dumbo and Tribeca (double the price) and the slightest difference between Brooklyn Heights and the Upper West Side. Lastly, the carrying costs in Brooklyn are almost half what they are in Manhattan. Nowhere does this play out more than in the Williamsburg and East Village/LES comparison. And this is where the real story is told. Yes, prices have climbed, but the underlying cost of living in Brooklyn has lagged behind and those costs, can not be financed over the term of the mortgage.
Therefore, this shows that Brooklyn continues to offer great value for discerning buyers and the “truth” often lives a layer or two below the surface. Don’t just look at the top line price picture, but include carrying costs in your equation to help you find the right property for you, in whichever borough you choose.