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LIC Rental Market Starts To Sag, As Prices Drop From A Year Ago

Development

April 15, 2016 By Christian Murray

Real estate companies are struggling to command the same lofty rent for luxury Long Island City apartments that they did last year, according to a newly-released report.

The average rent paid for a three-bedroom luxury apartment during the first quarter of 2016 was $5,561, according to the Modern Spaces 1Q16 report. This figure is significantly lower than the $6,053 reported for the first quarter in 2015.

Even the amount levied for smaller apartments was lackluster.

The average rent for a luxury studio apartment was $2,462 during the first quarter of 2016, down from $2,502 for the first quarter of 2015.

The average rent for two-bedroom apartments during the first quarter of 2016 was $4,302, down from $4,436 for the same quarter in 2015.

Luxury one-bedroom units did go up slightly, from $3,126 during the first quarter of 2015 to $3,171 during the first quarter of 2016.

“There is a large supply [of rental units] and a lot more coming so the market will start to plateau,” said Arlinda Dine, executive director of marketing at Modern Spaces. “There are another 20,000 units coming in the next few years.”

She said that the square footage of apartments are getting smaller, which has affected prices.

The Long Island City Partnership reported last week at its annual real estate breakfast that approximately 11,000 residential units have been completed since 2006 and another 22,500 units are to come.

Of the 22,500, about 95 percent will be rentals.

The condo market was mixed on a year-over-year basis.

The average price paid for a one-bedroom condo during the first quarter of 2016 was $813,000, down from $820,000 in the first quarter of 2015. The price per square foot also dipped, dropping from $1,134 in 1Q15 to $1,078 in 1Q16.

The Jackson

The Jackson

But the bigger apartments did better.

Two bedroom condos sold for $1.2 million during 1Q16, up from $1.1 million in 1Q15. Furthermore, the price per square foot came in at $1,116 in 1Q16, up from $1,028 in 1Q15.

Three bedroom condos sold on average for $1.7 million. Modern Spaces did not have 1Q15 data for three-bedroom condos to compare it with.

The condo market remains strong, Dine said. She said that many new buildings—such as The Jackson and [email protected] Murray Park North—have come to market and the contract prices are fetching $1,500 per square foot.

“There is also lot of demand for the bigger apartments such as the two-[bedrooms] and three-[bedrooms],” Dine said. “There are a lot of families in the neighborhood looking for these apartments.”

 

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10 Comments

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MRLIC

Yuppies and Hipsters are both no good for neighborhoods, how is that? zombies on phones that say the word “LIKE” after every other word. Man buns and funky clothing.. beards and scarfs worn even when it’s 60 degrees. Not picking up after their dogs. Did I miss anything about Yuppies and Hipsters?

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I dislike hipsters too, but yuppies-the 80s don't seem so bad

Aside from. Perhaps the phone comment it doesn’t appear that you can define yuppie as the rest of your descriptors are hipster all the way. So I’d say you missed a bunch.

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MRLIC

All these commenters are correct. It is a joke. Hipster havens not for families. Over priced for sure!!!!!!!!!!!!!!!!

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brooklynmc

Is it possible for you to ever get your point across without the insults? Plus, do you even know what a hipster is? Please do a google search. There are very few hipsters in LI City. You need to cross the Pulaski Bridge. I think the mean spirited term you seek is “yuppie”.

Reply
Chill

That is an insanely disgusting amount of building, and none of it affordable. The real estate industry is like a fatal virus to living communities.

Reply
rikki

HAHAHA…hotel rooms for the hipsters……no oven what about a tiny efficiency sink, that can hold dishes for 2 people if you dont eat much

what kind of jobs do they have to afford to toss this kind if money out the window….

we had 5 rooms in sunnyside for $1600, old landlord with a paid off house..so he didn’t need every last dime from us so we stayed 15 years

Reply
Hmmmm

It’s evident developers in this area are not keen on building for families. Apartments are entirely too small to enjoy in these new construction buildings.

The 22-22 Jackson Avenue building is a joke. Gershon should be ashamed. There isn’t even an oven in a studio or 1bed. So if you want to spend $3000 a Month and have a desire to bake or be comfortable, you should look elsewhere

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brooklynmc

Seriously? No oven? Strange indeed. The truth is, young people will never cook so maybe they are on to something. I also read a story recently that said for the first time, ordering food is actually cheaper than cooking.

Reply
student123

Regardless of the price difference between cooking and ordering, concluding that young people do not like to cook is a hasty generalization. There exists a multitude of youngsters that not only enjoy the taste of their own freshly made food, but also enjoy spending time in the kitchen (be it cleaning or drinking). Check your facts, Sir!

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