Why Downtown Brooklyn Is Outpacing Other Neighborhoods

Downtown Brooklyn’s housing market is booming. More than 3,700 new units were completed in the first half of 2025 alone—a record-breaking surge that eclipses the borough’s last major growth spurt in 2002, when just 2,925 units were delivered over the entire year. Roughly 30% of this year’s additions include affordable housing.

Jonathan Miller, CEO and President of Miller Samuel, draws a comparison to Manhattan’s Financial District during its transformation years ago, when the area shifted from a 9-to-5 commercial hub to a vibrant residential neighborhood. “Downtown Brooklyn is going through the same phenomenon,” Miller says, “converting from a commercial district with residential on the side to a significant residential neighborhood.”

Today, Downtown Brooklyn leads the borough in housing availability, surpassing both Park Slope and Williamsburg. While the surge in new units is a welcome response to historically tight inventory, most of the new stock is priced above existing options—putting upward pressure on values.

Over the past decade, home prices here have climbed 65%. That’s less dramatic than Cobble Hill’s 104% jump, but with this sudden wave of development, Downtown Brooklyn may outpace its neighbors over the next couple of years.

Some of this momentum can be linked to “climate gentrification.” After Hurricane Sandy in 2012, costly repairs and rising insurance premiums pushed out longtime residents, while wealthier buyers—many with ties to nearby Wall Street—moved in. Since then, major investments in infrastructure aimed at protecting against future storms have made the area even more attractive to developers, who are delivering high-end residential projects that continue to drive prices higher.

Beyond housing, Downtown Brooklyn is thriving on other fronts. Residential foot traffic has soared 97% above pre-pandemic levels, fueled by new retail, grocery stores, and seamless transit access via Atlantic Terminal and 12 subway lines.

For anyone considering Brooklyn as home, the message is clear: with more units on the way, prices are set to keep climbing. If you’d like to discuss opportunities, let’s connect.

Serj Markarian