DOWNTOWN BROOKLYN’S RESIDENTIAL GROWTH

Downtown Brooklyn has experienced significant growth over the past five years and has become an attractive destination for a diverse mix of residents. Since the adoption of the Downtown Brooklyn Development Plan and area-wide rezoning in 2004, Downtown Brooklyn has experienced a surge of residential development, with over 20,500 new housing units delivered across more than 100 buildings. The past five years alone (2018-2022) have accounted for nearly 40% of this growth.1

The combination of excellent transit access and proximity to employment, cultural and recreational opportunities have led to Downtown Brooklyn becoming a high-density, mixed-use neighborhood. This type of

density adjacent to a rich array of transit options is emblematic of sustainable land use planning and will help address the dire need for more housing near employment centers.

This report analyzes Downtown Brooklyn’s2 residential growth, drawing on data from city agencies, census reports, real estate databases, and interviews with developers. This report explores:

• Recent housing production and performance;

• The state of the residential market and factors driving demand; and

• The future of residential growth in the neighborhood.

Nearly 40% of all new housing supply in Downtown Brooklyn has been built in the last 5 years. 38% of new housing (7,800+ units) created since 2004 was delivered between 2018 and 2022.

Downtown Brooklyn attracts a growing concentration of residents. Downtown Brooklyn has become a magnet for a diverse range of residents with a population growth rate of 16% since 2018 - 3x the rate of New York City.

Rental demand is outpacing supply, despite new construction. Despite thousands of new units delivered in recent years, vacancy rates remain below 5% and renewal rates are strong.

The 421-a incentive was an essential tool for residential development. 421-a was used for 14 out of 18 rental buildings built from 2018 to 2022, accounting for 4,169 units, which represents 83% of all rental units built within this timeframe.