“In 2021, the Brooklyn real estate market reached new heights, with a record number of closings and an astounding $8.1B in sales volume. The fourth quarter also hit a new benchmark, with over 1,900 apartments closed—a notable year-over-year growth of 15%.
Buyers are still actively searching for larger homes, driving sales in neighborhoods across the borough, proving that the demand to plant roots in Brooklyn is strong. So strong, in fact, that we’re seeing the lowest inventory level in seven years, which is leading to a 17% annual increase in average pricing. Buyers continue to recognize the perks of living in the borough, and Brooklyn has quite simply never been hotter.”
-Michael Sorrentino, SVP, General Sales Manager, NY
Fourth Quarter 2021 was the icing on the cake of one of the most remarkable years in Brooklyn real estate.
- An incredible 8,600 apartments closed in 2021, a giant 73% increase over 2020 and the highest figure on record.
- Over 1,900 buyers closed on apartments in 4Q, a year-over-year increase of 15%.
2021 toppled sales volume records with a staggering $8.1B, which crushes 2017’s record of $5.5B.
- 1,466 contracts were signed during 4Q 2021, making it the second-highest quarter on record for contract activity.
- Closings in 4Q rose 15% annually to about 1,920 sales, the fifth consecutive quarter of double- or triple-digit gains.
- With an 80% year-over-year increase, new developments are driving performance and capturing nearly one-third of the market.
Active buyers on the hunt for larger homes in prime neighborhoods helped sustain near-record pricing statistics.
- Median price rose 7% year-over-year to $813,000, one of the highest figures on record, and cooling off only slightly from 3Q2021’s record high.
- Average price continued to surpass $1M and increased 17% year-over-year.
The region encompassing Kensington, Windsor Terrace, Ditmas Park, and Flatbush & Prospect Park South saw sales increase a monumental 55%, the largest year-over-year gain in the borough.
- The second-largest increase was in Williamsburg and Greenpoint, where transactions were up 34%.
- Median price was up 28% annually to $1.28M, as a staggering 77% of buyers paid over $1M for an apartment, as opposed to 48% in 2020.
Strong demand from buyers led to a 31% inventory decline, the largest in seven years.
- With only 1,785 listings, inventory is at a three-year low, excluding the market pause in 2020.
- Across all price points, inventory did not contract evenly relative to 2020. Inventory priced $1M to $2M fell 46%, whereas listings over $2M dropped only 17% compared to 4Q2020.
- Demand for larger residences continued into 4Q, and as a result, supply shrank at a slightly greater rate for this property type. Inventory for two and three bedrooms fell 33% versus last year as opposed to a drop of 28% for studios and one-bedrooms.