I
n the heart of brownstone Brooklyn, a luxury market boom has taken hold. From July to November 2024, townhouse contracts in the borough nearly doubled, reaching 756 from 402 during the same period last year, an 88% increase. This surge outpaced other property types across Brooklyn and Manhattan, with growth rates roughly two times higher.

    The luxury market's resurgence is a broader phenomenon this year, where rate-insensitive buyers have returned to the fold. These high-end buyers are flocking to prime Brooklyn neighborhoods like Brooklyn Heights, Cobble Hill, and Park Slope, driving up prices. "The $10 to $15 million buyers who have optionality and liquidity are choosing to go to these areas," said Ravi Kantha of Serhant.

    Buyers from Manhattan are leading the charge, with two recent sales – 1 Sydney Place for $22 million and 30 Tompkins asking $13 million – featuring Manhattan-based buyers. Kantha predicts that a $30 million sale in Brooklyn is not far off. "These numbers are insane," he said.

    The average price per square foot for 1-3 family homes has set a new record at $795, driven largely by the upper end of the market. However, buyers in neighborhoods like Bed Stuy and Crown Heights are more impacted by interest rates. Townhouses have become more appealing due to their relatively lower tax rate.

    Despite dwindling inventory – listings fell 22% in the third quarter – boutique developers are reaping benefits, putting multiple townhouses into contract asking mid-eight figures. "One to three families seem to be outperforming everything else," said Jonathan Miller of Miller Samuel.