Manhattan Beach: Homeownership Trends and Rising Property Values in Brooklyn's Coastal Gem
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Manhattan Beach, a charming neighborhood in Brooklyn, New York, is known for its beautiful shoreline and vibrant community. This area has experienced notable shifts in homeownership rates and property values over the past decade. From 2013 to 2022, the neighborhood saw a slight decrease in homeownership, while average home prices and average rent prices generally trended upward, reflecting the dynamic real estate market in this desirable coastal enclave.
The relationship between homeownership rates and average home prices in Manhattan Beach reveals an interesting trend. In 2013, the homeownership rate stood at 79%, with an average home price of $1,007,008. Despite a steady increase in average home prices, reaching $1,506,065 by 2022, the homeownership rate declined to 73%. This inverse relationship suggests that rising property values may have made homeownership less attainable for some residents. For instance, between 2013 and 2017, as average home prices rose by 22.5% to $1,233,554, the homeownership rate increased slightly to 82%. However, from 2017 to 2022, as prices continued to climb by an additional 22%, the homeownership rate dropped by 9 percentage points.
Federal interest rates have played a significant role in shaping homeownership trends in Manhattan Beach. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 80%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), we observed a gradual decline in homeownership rates, dropping to 77% by 2019. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, possibly due to economic uncertainties during the pandemic.
The renter population and average rent prices in Manhattan Beach have shown their own distinct patterns. In 2013, 21% of residents were renters, with an average rent of $1,299. By 2022, the renter percentage increased to 27%, while the average rent rose to $1,663, representing a 28% increase over nine years. Interestingly, there was a significant dip in average rent to $789 in 2018, coinciding with a temporary increase in the renter population to 23%. This anomaly could be attributed to various factors, including changes in local housing policies or economic conditions.
Looking at the most recent data, average home prices in Manhattan Beach reached $1,495,605 in 2023 and slightly decreased to $1,471,763 in 2024. This minor decline of 1.6% suggests a potential cooling in the local real estate market. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may contribute to a slowdown in home price appreciation and could potentially impact homeownership rates in the near future.
Applying predictive models to forecast trends over the next five years, we anticipate that average home prices in Manhattan Beach may experience moderate growth, potentially reaching around $1,600,000 by 2029. This projection accounts for the recent slight decline and the current high interest rate environment. Average rent prices are expected to continue their upward trajectory, potentially surpassing $1,900 per month by 2029, driven by ongoing demand for rental properties in this desirable neighborhood.
In summary, Manhattan Beach has demonstrated a complex interplay between homeownership rates, property values, and rental market dynamics. The gradual decline in homeownership despite rising property values highlights the challenges of affordability in this sought-after Brooklyn neighborhood. The rental market has shown resilience, with increasing renter percentages and generally rising average rents. As interest rates remain elevated, the real estate market in Manhattan Beach may experience a period of stabilization, with more moderate growth in both home prices and rents compared to the rapid increases seen in previous years.
