Brooklyn is not what it used to be: the hip New York City borough is officially the least affordable housing market in the nation, relative to income.
In Brooklyn, "a resident would need to devote 98% of the median income to afford the payment on a median-priced home of $615k," Bloomberg reports, citing data from real estate firm RealtyTrac.
San Francisco and Manhattan take second and third spot on the list of least affordable markets, according to the same report.
How did Brooklyn turn into such a wallet-destroying market? The main reason is the oversaturation of Manhattan, where ultra-rich foreign investors are pouring millions into the luxury market. (Hence Billionaire's Row, pictured.) Since 2008, 30% of sales from big developments came from foreign buyers.
As a result, the slightly less rich have no choice but to turn to Brooklyn. Swanky neighborhoods like Brooklyn Heights, Cobble Hill and Park Slope are now home to townhouses and brownstones that sell for millions of dollars.
Meanwhile, JDS Development's Michael Stern—behind Billionaire's Row's 111 W 57th St—recently closed on what will be the tallest tower in Brooklyn. [BI]
