Brooklyn's median condo price crossed $800,000 in 2024. A decade ago, it was $480,000. The borough has out-appreciated Manhattan on a percentage basis over that period, driven by demographic shifts, transit improvements, and a cultural gravity that pulls professionals, creatives, and families alike. But not every neighbourhood has peaked. Some are just getting started.
DUMBO: Premium, Priced Accordingly
DUMBO (Down Under the Manhattan Bridge Overpass) is Brooklyn's most expensive neighbourhood. Average condo prices exceed $1,800/sqft. A two-bedroom runs $1.5-2.5M. The area has matured into a tech-and-media hub, anchored by Etsy's headquarters and WeWork's Brooklyn campus. Views of the Manhattan skyline and Brooklyn Bridge command aggressive premiums.
For investors, DUMBO offers capital preservation but limited upside. Rental yields are 3-3.5% gross, similar to Manhattan. The buyer pool is deep (tech workers, creatives, families), but at these prices, you're paying for established value, not emerging potential.
Williamsburg: Saturated
Williamsburg's transformation from industrial district to Brooklyn's most desirable neighbourhood is complete. The North Side and waterfront along Kent and Wythe avenues are lined with luxury condos from developers like Two Trees and Brookfield. Median condo price: $1,200-1,500/sqft. Rental yields: 3.5-4.0% gross.
The L train connection to 14th Street makes it a de facto extension of Lower Manhattan. That's priced in. New supply is still coming. The Domino Sugar factory site alone is adding 2,800 apartments, which could pressure per-unit pricing over the next 2-3 years. Williamsburg is a solid hold for existing owners. For new investors seeking growth, the upside is limited.
Bushwick: The Momentum Play
Bushwick is where the value gap is widest. Average condo prices: $650-900/sqft, roughly 40-50% below Williamsburg, which is a 15-minute walk or one L train stop away. Median two-bed condo: $600,000-750,000. Two-bed rents: $2,800-3,400/month. Gross yields of 4.5-5.5%.
The neighbourhood's demographics have shifted rapidly. The under-35 population grew 18% between 2015 and 2023. Coffee shops, galleries, co-working spaces, and independent restaurants line Knickerbocker Avenue and Irving Avenue. It's not "up and coming." It's arriving.
Transit: the L (DeKalb, Jefferson), M (Myrtle-Wyckoff), and J/Z lines serve Bushwick. It's well-connected but not as convenient as Williamsburg's waterfront stops. Rezoning is the risk to watch. The city has proposed increased density allowances, which would add supply and potentially moderate price growth.
Crown Heights: Institutional Capital Arriving
Crown Heights sits between Prospect Heights (expensive) and East Flatbush (affordable). That middle position is where appreciation happens fastest. Average condo prices: $700-950/sqft. A two-bed: $650,000-850,000. Rents have climbed 12% year-on-year, pushing gross yields to 4.5-5.0%.
The neighbourhood is anchored by the Brooklyn Museum, Prospect Park, and the Brooklyn Botanic Garden, cultural assets that attract a stable, higher-income tenant base. The 2/3/4/5 subway lines provide direct access to Manhattan's East Side and Midtown in under 30 minutes.
Institutional developers are active. New rental buildings along Franklin Avenue and nostrand Avenue are adding hundreds of units, but demand is absorbing supply without depressing rents. The demographic shift here is more advanced than Bushwick. Crown Heights has already crossed the tipping point where chain retailers and branded gyms signal mainstream market acceptance.
Bedford-Stuyvesant: Space and Value
Bed-Stuy offers something rare in Brooklyn: space. The neighbourhood's signature brownstone townhouses provide 2,000-4,000 sqft of living space. Prices for a multi-family brownstone (two or three units) range from $1.2-2.0M, translating to $400-600/sqft, the lowest among the neighbourhoods in this analysis.
The investment case is strongest for multi-family brownstones. A three-unit brownstone at $1.5M generating $8,000/month in total rent yields 6.4% gross. Live in one unit, rent two: effective yield on the rented portion climbs above 7%. These properties are also eligible for favourable financing (3-4 unit residential mortgages with 25% down).
Bed-Stuy's A/C line stations (Nostrand, Utica) connect to Lower Manhattan in 25 minutes. The G line runs crosstown to Williamsburg and Long Island City. Population growth has been steady at 5-7% annually since 2018, driven by families seeking more space than Manhattan or Williamsburg can offer.
What to Watch
NYC's property tax system heavily favours co-ops and older buildings. New condo developments carry disproportionately higher tax assessments, sometimes 3-4x per sqft compared to a brownstone next door. This is being challenged in court and may reform, but for now, it's a material cost difference.
Interest rates matter enormously in Brooklyn's middle market. At 7% mortgage rates (the 2023 peak), a $700,000 condo was unaffordable for most two-income households. At 6% (current), it works. At 5.5% (projected 2026), it becomes comfortable. Each 50bps reduction unlocks a new cohort of buyers.
The IBX (Interborough Express) transit proposal, a new rail line connecting Brooklyn and Queens through underserved neighbourhoods, could transform Bushwick, Crown Heights, and Bed-Stuy connectivity if approved. It's still in planning, but if it advances to construction, property near proposed stations will see immediate price impact.