Housing market forecast 2023
Looking towards 2023, we can expect continued growth in the Dumbo area since this neighborhood has attracted new residents while retaining its current crowd.
Property values rising
Considering the recent developments in the area and the likelihood of more being added over the coming years, buying in now while the prices are reasonable will be a prudent decision over time. With property values steadily rising in the Dumbo neighborhood, your purchase will appreciate as the improvements and beautification of the community continue. The median home sale price increase and infrastructure development in Dumbo are signaling a positive trend for this growing neighborhood.
Interest rates fluctuating
With the unpredictable interest rates, some could be waiting for the low rates we saw during 2021 or just kicking themselves for not making their move sooner. While we may never see rates that low again, Brooklyn has proven to be a coveted locale that rises in value every year.
Investing for landlords
With any finite space, as the area is built up, there will soon be a shortage of land to build on, and construction will begin to slow down. Brooklyn being on the Southern tip of Long Island means that the properties closest to the water and those moving back toward Queens will either be preserved or rebuilt, yet they will increase in value for their premier location.
In 2019, the Department for Design and Construction finalized designs and plans for the infrastructure of Dumbo. Upgrades to the systems that deliver water to residents, upgrades to storm drains, and upgrades to the landmark cobblestone streets are among the major developments the city is constructing to help accommodate the influx of residents in this neighborhood. These improvements have elevated the neighborhood from rustic to immaculate, where residents can appreciate the history of the community while enjoying their carefully maintained home base.
Population trends in the area
The upgrades to the area have attracted those moving from out of state and even swayed those who have lived in other New York City boroughs their whole lives. As such, the area is seeing more construction to accommodate the surplus of residents.
Kings County housing market trends 2023
While Dumbo properties certainly fall under the echelon of luxury real estate, there are different levels to the hierarchy when considering this neighborhood. Since the community is on the end of Long Island, closest to Manhattan, the homes that line the water are worth more for the view of Manhattan and the surrounding East River. Dumbo is also home to many restaurants, coffee shops, and boutiques and has recently been opening more and more businesses. This has attracted young professionals who could work in Manhattan but choose to live in a quieter neighborhood. This keeps residents close to the action while offering entertainment close to home.
COVID-19 Effects on Dumbo’s real estate market
While COVID-19 slowed many aspects of life down to a halt, we can see the economy and construction ramping up in a big way. Residential construction has increased in the past few years. The most recent property constructed in Dumbo can be described as the pinnacle of luxury high-rise condominiums in the area. The Olympia was completed in 2021, and this magnificent piece of real estate provides a glimpse of the current and future trends of Dumbo real estate.
This 26-story high-rise has just 12 units left on the market. When the Olympia sells out, which can be expected by next year, there will be a newly completed high-rise at 69 Adams Street with 26 stories and 225 units.
Average home prices in 2023
The Dumbo real estate ranges from renovated lofts to new high-rise condominiums. Median home sale prices in Dumbo had an uptick of 3.1% from the year prior. You can expect a median home sale price in Dumbo to be approximately $1.8 million. That equates to roughly $1,600 per square foot for real estate in this neighborhood.
The market in Dumbo is on the high end of the scale compared to surrounding Brooklyn neighborhoods. However, a quick visit to the area will quickly justify why. Views from high-rise condominiums going for $5 million and up provide exquisite riverfront views of the iconic Brooklyn Bridge and lower Manhattan skyline. The prime location of Dumbo has helped the real estate market through hard economic times and flourish otherwise.
Dumbo Real estate market: Should you invest?
Get to know the neighborhood
The neighborhood of Dumbo is an acronym for “Down Under the Manhattan Bridge Overpass.” Regarded as the most visited place in Brooklyn, this unique location provides its audience with picturesque views of the Lower Manhattan Skyline. This once-industrial hub has been rejuvenated to accommodate the city professionals who have moved into the area in droves.
Beautiful brickwork boutiques and small businesses are nestled along the cobblestone streets of this historic borough, making it the perfect location for those who enjoy an active lifestyle and quiet in the night hours. Dumbo has had a great couple of years in terms of construction and beautification, and now we are seeing those improvements pay off as people flock to the area.
Looking for representation in Dumbo?
If you are moving to New York City, you should work with a real estate professional who has worked through the highs and lows of the housing market. Securing property in any borough can be challenging, and the homes in Dumbo are desirable and can be snatched up quickly. If you are looking to buy or sell luxury real estate, working with an agent will be a necessary expense. Your agent should protect your interests while continually moving the transaction forward. Those that are looking to make a real estate purchase in and around Brooklyn will appreciate the advice and knowledge a local agent can impart.
Get started today
The Jonathan Stein Team will ensure that your questions are answered at every step of the way and will work swiftly to operate within your timeline. From Dumbo real estate to the Greenwich Village homes for sale, your representation should go the extra mile so that your homebuying experience is stress-free and enjoyable. Contact Jonathan and his team today to discuss your real estate needs and plan a course of action.