Real Estate Insiders Assess the 2022 Brooklyn Market

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The Brooklyn apartment market was red hot in 2021. “It reached new records for both sales and prices,” said Gregory Heym, Brown Harris Steven’s chief economist. “And demand for townhouses was also very strong, as those prices also hit a new high.”

For 2022, while competition for neighborhoods throughout Brooklyn expects to reach record highs, some factors remain unpredictable.

Here is an overview of the market’s outlook for 2022, with insights from top Brown Harris Stevens agents and brokers specializing in Brooklyn real estate.

Ban Leow, BHS real estate agent:

Current market forecast, simply put, is unpredictable, and also very segmented in different neighborhoods. While Park Slope, Downtown Brooklyn, Cobble Hill and Carroll Gardens are experiencing a robust buying spree, other neighborhoods are experiencing stagnant inventories with tons of window shoppers. We’ve been on a Covid-19 pricing roller coaster since 2020, and with a new variant detected, the “yo-yo” pricing goes into effect. Sellers demand high listing prices and the buyers are still in the “pandemic” low-ball mode. I believe the market will gain strength again in mid-2022 if the Omicron variant is somewhat contained.

Steven Segretta, BHS real estate agent: 

I see active buying interest across all sectors of the Brooklyn market driven by first-time homebuyers and those migrating into Brooklyn from other areas. Given the strength of the market last year and the acceleration this year, I expect demand to outpace supply in 2022 with continued upward pressure on prices. Macro factors like the economy, inflation, rates and the pandemic may obviously change the dynamic, but without dramatic shocks to the system, I think we see continued momentum in the Brooklyn real estate market.

Joanna Mayfield Marks, BHS real estate agent:

Rates are supposed to hold into July, loan limits on one- to three-family homes were just increased nationwide and Brooklyn is cool. I believe, because of these factors, the first half of the year is going to zoom! Borrowing power is up. Buyers have flocked to Brooklyn for the “cool” cachet for over a decade, and some who left for a season have returned. Now living happy and well is paramount and Brooklyn offers it all: Light, air, parks, culture, art, cuisine. We are the youngest, most highly educated, diverse borough — according to Mayor Eric Adams.

Bill Sheppard, BHS real estate agent:

As we continue to live with Covid concerns, buyers still need to get on with their lives. I expect 2022 will be a very competitive year for Brooklyn buyers, especially for townhouses, as outdoor space and square footage continue to be a priority.

Dena Driver, BHS real estate agent:

I believe the fourth quarter reports will only further confirm the strong return of New York City real estate. Luxury real estate signed contracts tripled in 2021 compared to 2020, which was a weak year, but I expect when the fourth quarter figures come out, they will be vastly up even when compared to 2019.

Brooklyn has had a stronger market overall when compared to Manhattan through the pandemic; people are still moving to Brooklyn for the lifestyle and access to waterfronts and green spaces. The economic figures, expected bonuses and jobs growth all remain high.

Peter Grazioli, BHS real estate agent:

I think we will see continued strong demand, especially in the townhouse market, and some pricing stability as we saw starting in the last half of 2021. The smaller studio and one-bedroom units will continue to be slow going.

For more information go to the BHS website here.

[Photos via Brown Harris Stevens]