Remy Raisner is the Founder and CEO of The Raisner Group, a Brooklyn-focused Real Estate Private Equity company.
A quiet sea change has occurred in New York City real estate. In 30 years or so, the Big Apple’s center of gravity has shifted Downtown, and then to Brooklyn. More than just a brick-and-mortar change, it is an urbanism change: Today, much of the city’s cultural offer takes place there.
Decades ago, the city’s pull was Upper East Side and Midtown. Slowly in the 1980s and 1990s, run-down, grungy Soho, Lower East Side and Tribeca became desirable, then high-luxury and unaffordable to most newcomers. Eventually, the demographic push jumped the bridge and gave (re)birth to Williamsburg, the waterfront. And as it eventually lost its “cool,” New York’s beating heart crept toward Bed Stuy and Bushwick, which has become an NYC nightlife hotspot. Prospect Heights and Clinton Hill were named the “hottest neighborhoods” in the country this year by Redfin.
We are seeing a real paradigm change. Real estate-wise, Manhattan used to set the gold standard. Nowadays, Brooklyn is fast-growing and arguably the “most exciting” submarket.
Brooklyn On The Rise
Despite the backdrop of rising interest rates until recently, Brooklyn home prices keep hitting record highs. Behind this is Brooklyn’s desirability: Its arteries are tree-lined, quieter than those of Manhattan and neighborhood life is cordial and warm. Less roughness makes tenants cross the bridge, in our experience.
And apartments are still less expensive than in Manhattan. But there is more than solely rehabilitated properties to the Brooklyn story: Ground-up development has moved at a brisk space. Hence, the transformation feels very palpable. In Downtown Brooklyn, rezoned from uniquely commercial in 2004, over 3,700 new apartments were built in the first half of 2025. This is quite impressive, when knowing the difficulty of developing in New York.
But the real paradigm change is in the ownership. For decades, Manhattan was the primary housing option for many New Yorkers. Its real estate was limited, its market was protected by deep barriers to entry (very little land to build upon and compete with, and a plethora of interest groups to satisfy within each community) and owned by a few, large players. These conditions created little incentive to develop, innovate, provide better service or actively draw tenants.
These conditions also drove rents high. Prospective owners, developers and landlords in Brooklyn were different. And ready. From our experience doing business there for over a decade and half, we noticed a clear trend: Numerous first-generation entrepreneurs or foreign-born self-starters, in the industry with a vision who, with incumbent Manhattan to compete with, went above and beyond to draw a “clientele” from the blank canvass that then-rundown Brooklyn provided.
Investors And Professionals Take Notice
Many investors—like us—with the mindset of competing, did not hesitate to pay broker fees to draw a crowd. That attracted the young and artistic population that “made” the Brooklyn of the 2010s, which accelerated in the 2020s.
Over time, we saw these entrepreneurs expand their activities, become more professional and provide better services. In turn, the lenders changed. Banks would lend little on real estate in the Brooklyn of the old days, while the market became popular with institutional investors in the late 2010s.
That is the real story of New York real estate of the past decades. When deep-diving, one could have spotted that Brooklyn was ripe for a change.
Also misunderstood has been the role of NYC’s transportation system amid a rapidly changing economy. The A and C lines and the M line run through Penn Station and Herald Square, respectively, which have become tech hubs. And they run through Bed Stuy and the M line through Bushwick, too. As these neighborhoods’ apartments offer numerous outdoor and work-from-home areas, as we have witnessed in our rental units, they have proved popular with tech workers not needing to be at the office five days per week.
And the trend isn’t finished. As Bushwick, Bed Stuy, Crown Heights and Prospect Lefferts Gardens continue to grow, I expect Flatbush and Ocean Hill to open up.
Additionally, Brooklyn has become a mecca for entrepreneurship, and not solely in real estate as described above. Yoga and Pilates studios have popped up everywhere, and Williamsburg now features a “Wellness Corridor.” Combined with the youth and conquering spirit of Brooklynites, relatively affordable commercial rents have helped numerous startup businesses get off the ground in industries ranging from coffee shops to cryptocurrency.
Urban renewal projects continue to reshape New York’s real estate market, such as the Atlantic Avenue rezoning (4,600 new homes over 21 blocks), the Broadway Junction redevelopment (1,000 new units) or the Interborough Express, a new train line over 14 miles linking Brooklyn and Queens. Moreover, Brooklyn is one of the main beneficiaries of the “City of Yes” rezoning initiative, the most comprehensive New York zoning overhaul since 1961.
Are Growing Pains On The Horizon?
Growth does not come without challenges, though. Mitigating factors for the local market would be Brooklyn being victim of its own success that rents become so high that they stop the borough’s growth. And a continuing, massive inflow of tech workers could drive out cultural life as it did in San Francisco. But for the foreseeable future, I believe that Brooklyn is large enough and its culture entrenched enough to avoid that.
Another potential area of uncertainty for real estate investors is the New York City mayoral election. Democratic candidate Zohran Mamdani campaigned on a “freeze the rent” promise, though he has since taken a more moderate approach to real estate development. While the city administration has limited authority over free-market rents (which fall under state jurisdiction), the broader local economy continues to show strength and diversification following the pandemic. Looking ahead, investors are also watching for possible federal initiatives that could further support real estate development.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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