Dumbo is a beautiful, upscale neighborhood in the Brooklyn borough that stretches from the Manhattan Bridge to the Brooklyn Bridge. The surprising name derives from its exact location, “Down Under the Manhattan Bridge Overpass,” with the original intent to deter developers from expanding in this area. It has since drawn New Yorkers looking for luxury residential apartments and condominiums close to downtown Manhattan. Residents here enjoy easy access to the East River, with beautiful waterfront and cityscape views. Dumbo is also highly regarded for its variety of restaurants, boutique shops, and art galleries. If you are considering a move to this signature area, here is what you need to know about the cost of living in Dumbo.
Housing: rental prices
Dumbo is a highly desirable area to live in, often compared to the New York City neighborhoods of Tribeca, NoHo, and the Upper East Side. Most residents of Dumbo rent their apartments or condominiums, drawn to the revamped industrial spaces and new construction defining the area. The average monthly rent for an apartment in Dumbo is $4,013, with some apartments renting for significantly more depending on their location, square footage, and other amenities. This rent average is slightly higher than that of other areas of Brooklyn but remains lower than the costs in Manhattan. Many experts also expect rents to continue rising in Dumbo, as new residential construction continues to develop in this popular area.
Housing: home purchase price
If you are looking to purchase a luxury property in Dumbo, you should expect to pay more than you would in other areas of New York state. The median price for sales of homes across the state increased to $393,000, which is an increase of approximately 6% since this time last year.
The median home purchase price in Dumbo averages $1.8 million. Prices in Dumbo have not changed significantly over the last year, in keeping with the rest of the state. Experts are predicting high home prices may soon be leveling out in some areas. Home sales across New York have started to slow recently due in part to decreased inventory and higher interest rates.
Utility cost
You will also need to factor in your utilities as you calculate the total cost of living in Dumbo. Of course, your utility costs will also vary depending on your lifestyle, personal preferences, and home features. For example, if you live in an apartment with aged insulation, expansive square footage, or high ceilings, you might end up paying more to maintain your preferred temperature. You also can expect to pay separately for your utilities, which may include heating, cooling, water, and garbage, whether you rent or own your home here.
In Brooklyn, the average cost of utilities is about $182 per month. This is approximately 4% higher than the rest of New York. Your cell phone and internet costs will also be separate, depending on your carrier and personal needs.
Food cost
The overall cost of food has increased nationwide this year, and the Brooklyn area is no exception. You can expect to pay about 7% more for food here than in other areas of the state. While there are variations among stores, a gallon of milk goes for $5, while a loaf of bread will cost about $3. You can also expect to pay more when you head out to your favorite restaurant as well. The total costs have increased over the last year with the impact of inflation, cost of living increases, and shipping disruptions. If you head out for a meal for two in Brooklyn, you can expect to spend at least $90 before taxes and tips.
Transit cost
Another important consideration of the cost of living in Dumbo is the amount you can expect to spend on your transportation needs. If you are looking into mass transit, there are several options available. Three bus routes come through Dumbo, along with three subway lines heading into some of the other neighborhoods of New York. Fares cost $2.75 for the majority of riders. The East River Ferry is another option for those spending the day in Midtown or the Financial District. You can opt for either a $4 one-way trip or purchase a 10-trip pass for $27.50. If you are planning to drive your own car, gas prices currently range between $3.49 and $3.99 per gallon in the Brooklyn area.
Average salary
In New York City, the minimum wage for employees of both large and small employers is set at $15 per hour. This is significantly higher than the federal minimum wage rate of $7.25 per hour. Dumbo has also become a major hub for technology, where the average annual incomes for employees may be considerably higher. The easy access from Dumbo to the downtown New York City areas also makes this a very attractive place to reside for those who are willing to commute to their places of employment.
Ready to find your next home?
The cost of rentals, home purchase prices, average salaries, utilities, food, and transit, all factor into the total cost of living in Dumbo. With this information in hand, you can confidently begin the search for your next luxury home within this charming neighborhood in Brooklyn.
If you’re looking into Dumbo real estate, you will benefit from the support and expertise of a real estate agent to help guide you through the process. You want to team up with a professional who has a deep knowledge of the Dumbo neighborhood and understands the nuances of the real estate market.
Contact The Jonathan Stein Team for the most authentic and personable approach to real estate in the city. This team demonstrates an in-depth knowledge of the industry, strong networking connections, and overall insight into the New York City real estate market to guarantee a successful home search. Contact The Jonathan Stein Team | Douglas Elliman Real Estate for more information today.
*Header photo courtesy of Unsplash