The supply of Brooklyn condos has recently picked up. New construction is ongoing in Downtown Brooklyn, the Williamsburg waterfront, and Dumbo. Although supply has increased, the inventory of listings priced over $1 million has actually decreased by 5%. Considering that this price range accounts for over 40% of all transactions, high-end listings are still in short supply.

Prices continue to rise. The median price for Brooklyn condos in Q2 2026 is $1.49 million, up 14.8% from a year ago. For resale condos alone, the median price is $1.15 million, a 15% increase from last year. The price per square foot for resales has also risen by 5% to $1,217. New constructions are holding steady at around $1,370 per square foot, similar to last year's levels.

With higher price points comes a greater burden of management fees. The average management fee for condos in New York City is $950 per month. Management fees are trending to increase by an average of 6% each year. Current management fees of $950 could exceed $1,700 in ten years.

Brooklyn falls under New York City and is subject to Local Law 97. Buildings over 25,000 square feet face a fine of $268 per ton if they exceed carbon emissions limits. The year 2026 is the first year fines will actually be imposed. Management companies will need to cover costs through increased management fees, one-time special assessments, or credit limits for condos. Newer buildings may have more flexibility, but older buildings will face greater burdens.

Key items to check are clear. Recent financial statements, budgets, reserve study results, reserve levels, pending special assessments, and Local Law 97 compliance plans should all be reviewed. Rental restriction regulations should also be considered. Brooklyn has a high proportion of second homes and investment purchases, so management companies may impose limits on the percentage of rental units.

Loan conditions are also a point of verification. If the rental unit ratio is excessively high or the reserve level is below 10% of the budget, the property may be classified as non-warrantable under Freddie Mac and Fannie Mae guidelines. In this case, only higher interest loans will be available. New developments may also fall under this classification in the initial years, making it especially important to verify during the early purchase phase.

From an investment perspective, rental demand in Brooklyn remains steady. However, given the high purchase prices, calculating net yields must include management fees, property taxes, and potential special assessments.

When comparing new constructions and resales, the calculations differ. New constructions may be classified as non-warrantable due to not meeting Freddie Mac and Fannie Mae standards in the initial years, while resales have established financial histories, making verification relatively easier. However, since resales are older, there is also a possibility that Local Law 97 compliance costs will be collected as special assessments.

Many families choose properties based on school districts. Areas with strong school reputations, like Park Slope or Brooklyn Heights, tend to have higher condo prices, so weighing budget, school district, and management fee burdens is advisable. School district boundaries can change frequently, so it's wise to verify assigned schools before signing a contract.

Brooklyn has a relatively lower entry price compared to Manhattan while maintaining steady rental demand, making it a popular area for those considering investment in New York City for the first time. However, given the sharp price increases, it's prudent to assess whether the purchase price is reasonable in light of recent trends over the past few quarters.

If a building has not established a Local Law 97 compliance plan, it's wise to check whether a budget for facility improvements has been prepared before fines accumulate. It's also worth checking the management company's website or recent newsletters for related announcements, and having a brief conversation with the property manager can help gauge the atmosphere that may not be evident from written materials alone.

This information is not investment or legal advice. Consulting with a professional before making any contracts is a safe choice.