Ah, BedStuy! Bedford-Stuyvesant real estate appreciated 194% since 2004- the greatest appreciation in the nation. Check out this article in Brownstoner.com that goes into detail: http://www.brownstoner.com/real-estate-market/brooklyn-real-estate-bed-stuy-home-prices-increase/ Keep in mind that time period includes the “great recession”.
It is worth noting however, that the transformation of Bedstuy and parts of Bushwick are not likely to mirror the transformations that we have seen in neighborhoods like Williamsburg and Long Island City where zoning changes played a huge role in the real estate booms. Bedstuy in particular is comprised of very established and in many cases protected/landmarked residential areas. While we are unlikely to see historic brownstones replaced by high rise apartment buildings anytime soon, there are cool new restaurants and bars popping up in various parts of the neighborhood. Try to get into Saraghina on the corner of Halsey and Lewis on a weekend night without a long wait Or go to Dynaco for some nicely mixed cocktails, craft beers and the coolest crowd in Brooklyn. And if you have any doubt about the coolness of these neighborhoods use the Edison bulb metric..
For a little inside glimpse into newer restaurants and bars in Bedstuy (and more on the Stuy-Heights end of things) check out a sister site of The Real Estate Nerd: www.idratherbeinbedstuy.com
The “party line” that the real estate industry likes to tow is that BedStuy is “over” and you missed the boat. While it is true that you missed the 194% or so appreciation from 2004 till 2017 it is short-sighted to think that BedStuy is done appreciating. But you may want to be careful about where exactly in Bedstuy you go. All subway stops along the J/Z/M are not the same, and closer to Manhattan does not always equal better neighborhood appreciation.
The big story(s) for people interested in buying real estate in BedStuy– particularly Stuyvesant Heights (Stuy Heights)– is the relatively inexpensive multi-family buildings (with 2 or more units). In north-eastern BedStuy, and south-eastern Bushwick, starting around the Myrtle ave J/Z/M subway stop and continuing out to around the Halsey J/Z stop, 2 family brownstones for under $1.5mm abound and 3 family buildings are fewer in number at that price range but do exist. From an investor or developer standpoint, one can either buy these multi-family buildings and rent and/or renovate or in some cases, the brownstones can be converted and parted out into 2 or 3 condos, often providing for a great deal more value than selling it as a multi-family building. Cap rates of 5-6% and above in this part of Brooklyn are not uncommon, and for people familiar with the NYC real estate market these are very good numbers.
Click on the picture below to see Stuy-Heights real estate for sale on Streeteasy:
Its also worth noting that the J train runs express during rush hours which takes you from Gates Ave to the lower east side in about 15 minutes at those times. But even more importantly to appreciation of brownstones in Bedstuy and Bushwick along the J/Z line is the impending shutdown of the L train starting in 2019. See the Real Estate Nerd’s article on the shutdown (which now seems partially averted). It seems very likely that rental/real estate traffic along the J/Z line will shoot up as the L train shuts down- even if its a partial shut down- for a couple years, pushing development up along with prices. One also wonders whether it will have the same effect on the M train line all the way out to Ridgewood, which is still a relatively cheap (but that is a topic for another article).
As For Bushwick:
Watch this informative video on contemporary Bushwick:
Just about everything mentioned above about north-east Bedstuy and Stuy Heights can also be applied to south-east Bushwick as well. Multi-families along the J/M/Z lines in Bushwick are similarly priced to their counterparts just south of Broadway in Bedstuy. One minor but noticeable difference is the architecture however. While you will find old brownstones comparable to much of what you find in Bedstuy along Bushwick Ave, many of the multi-families just north of Broadway are younger than their counterparts in Bedstuy. Where you will find almost exclusively brick and brownstone in Bedstuy, you will often find vinyl siding facades in Bushwick.
Exterior aesthetics aside, some extremely nice single and multi-family renovations exist in Bushwick. Like this 20′ wide, 2 family on Bushwick Ave: http://streeteasy.com/building/1314-bushwick-avenue-brooklyn/house
Also for a rent comparison (by bedroom) between Bedstuy and Bushwick (and Astoria), see below or the full The Real Estate Nerd article HERE.
| Bedrooms: | $ per Bed: Astoria- Renthop | $ per Bed: Bushwick- Renthop | $ per Bed: Bedstuy- Renthop |
| 4 beds | $725.00 | $894.00 | $903.00 |
| 3 beds | $1,057.46 | $980.00 | $995.00 |
| 2 beds | $1,265.15 | $1,289.00 | $1,220.00 |
| 1 bed | $2,156.50 | $2,412.00 | $2,231.00 |
| studio | $2,112.33 | $2,472.00 | $2,019.00 |
| Total Avg $ per bed: | $1,463.00 | $1,609.00 | $1,473.00 |
And finally, for a more general look about some of the topics just covered, along with some history and demographic info, check out this video from the New York Times about BedStuy:
Happy Real Estate Hunting!
#therealestatenerd