Business & Tech

Recent Report Finds While Home Prices in Bed-Stuy Dropped, Rents Increased

The Furman Center for Real Estate and Urban Policy tracks recent housing trends in Brooklyn and Bed-Stuy

A report issued by the Furman Center for Real Estate and Urban Policy in April of this year found that home sales prices in Brooklyn fell in 2010, continuing a two-year decline.

After reaching a high in 2008, sales prices for single-family homes fell 15.5 percent in 2010 from 2009, while prices for two- to four-family homes fell by nearly 18 percent in 2010 from 2009.

However, despite these lower prices of home properties, average rents increased in Brooklyn between 2008 and 2009, from $915 to $950, according to the Furman report.

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Similarly, In Bedford-Stuyvesant, average sales prices for two- to four-family homes dropped from $188,155 in 2009 to $161,667 in 2010, a 14 percent decrease. Yet, the average rental contracts also increased in Bed-Stuy between 2008 and 2009, from $815 to $836.

And although the total number of homes sold in Brooklyn remained essentially unchanged, not surprisingly, home sales volumes in Bedford-Stuyvesant increased 14 percent in 2010 from 2009, from 575 to 659.

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The report also found that the total number of new mortgage loans issued in Brooklyn dropped in 2009 from 2008, to 19.4 new home loans issued for every 1,000 properties-- a little under 2 percent of properties total.

In Bed-Stuy, the number of new home loans issued also dropped, from 26.3 for every 1,000 properties in 2008, to 14.7 in 2009, a 56 percent decrease, and about 1.5 percent of properties total.

The number of homeowners refinancing their mortgages in Brooklyn jumped to 24.7 refinance loans per 1,000 properties in 2009, up from 16.0 in 2008.

Brooklyn also continues to have the highest percentage of severely crowded rental households in the city.

In Bedford-Stuyvesant, a whopping 45.8 percent of all rental units were publicly owned or subsidized, according to the report. Of these, 56.3 percent were units in NYCHA buildings.

Correction:

The report gives median price per unit. So the median price for a 2-4 family home would be 2-4 times the per unit price, depending on the size of the property. The actual median price for a 2-4 family home in Bedford-Stuyvesant is $400,000.


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