Oct. 13, 2015 By Christian Murray
Long Island City rental prices tumbled in the third quarter, according to Modern Spaces’ 3Q15 report.
The report, released today, revealed that rental prices for luxury apartments were down 7.2 percent on average, to $3,979, compared to the second quarter.
The drop is largely the result of a number of new buildings hitting the market. Furthermore, many Long Island City residents left their existing apartments to move into the newly-opened Hunters Point South complex.
“A lot of people who won the lottery relocated there from other parts of Long Island City,” said Eric Benaim, chief executive of Modern Spaces. “All of a sudden a lot of apartments became available.”
The decline was particularly significant when it came to rental prices for two and three bedroom apartments.
The price of a 2 bedroom luxury apartment dropped 9.2 percent—to $4,346—compared to the second quarter figure of $4,788, according to the report. Meanwhile, 3 bedroom units fell 10.1 percent, to $6,016.
Studios were down 1.5%, to $2,504, while one bedrooms fell 2.7%, to $3,049.
However, the rental figures were up across the board compared to a year ago. Studios were up 5.7 percent from 3Q14; one bedrooms were up 1.2 percent; two bedrooms 5.1 percent; and three bedrooms 5.9 percent.
Benaim said that the rental market is slowing down and noted that 20,000 new units are coming online over the next 3 years.