Oct. 20, 2014 By Christian Murray
The upward trajectory of the Long Island City rental market is beginning to show signs that it is tapering off, with rental prices down in the third quarter compared to the second.
The cool down was also evident on a year-over-year basis with rents up only slightly compared to 3Q 2013, according to a recent report.
Modern Spaces, a LIC-based real estate firm, reported that rental prices for luxury apartments dipped by about 5 percent on average in the third quarter compared to the second. For instance, the rent charged for a luxury studio was $2,369 in 3Q 2014, down from $2,558 in the second quarter (see rental figures below). Meanwhile, the rent for a one bedroom luxury unit dropped from $3,158 to $3,013 over that period.
“The past quarter we are really seeing the rental market stabilizing and leveling out,” said Eric Benaim, the CEO of Modern Spaces, in a statement. “With all the new projects that have come online this year, competition between buildings is becoming increasingly apparent and the prices of rentals in the area have started to adjust.”
This year alone, TF Cornerstone began leasing its sixth and final luxury building – 46-10 Center B lvd—which is comprised of 584 units. Meanwhile, Rockrose announced in August that it had fully leased its 709-unit luxury building called Linc LIC.
Rockrose has started construction on a 50 story mixed-used development at 43-25 Hunter Street, which will include 974 rental units. That should be completed by 2017.
Despite the recent slowdown, on a year-over-year basis luxury rentals were up about 4 percent, according to the report. In 3Q 2013, a luxury studio was renting for $2,320 (compared to $2,369 in 3Q14)—while a luxury one bedroom for $2,901 (compared to $3,013 in 3Q14). Furthermore, a 2 bedroom in 3Q 2013 went for $4,106, while in 3Q 2014 it fetched $4,134.
The big firms such as TF Cornerstone and Rockrose are still not offering much in the way of incentives. It is rare to find one month free rent, although the developers will cover the cost of the brokerage fee.
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22 Comments
So you went to this site, read the comments, put your name and email, used 5 min of your time to write that? you have no opinion and you make that public?
3,300 is a lot but worth it for some great, clean, well-maintained apts with a great view and amenities. those who can afford are happy paying.
those who can’t or don’t want to , be happy too.
LIC is great if slightly overcrowding
Its all hype. Bubble will burst. LIC is a toxic dump.
And you saw a flying pony the other day, right? How much hate some comments have, chill out people!!
Oh Dear! Leave the guy alone, whatever
Hunters point is water front and 1 stop from GC. Sounds like these kids are jealous that folks are 15 mins from work and living quiet luxury while they are still living in the 1920s fighting prewar noise and living conditions. No brokers fees and modern living. All of nyc is bridge and tunnels so enjoy that argument because it won’t last. Most New Yorkers here are completely clueless of how beautiful life can be in the city and have become too accustomed to section 8 every corner and crack heads filling the parks. These luxuries are not even expensive compared to luxury in brooklyn and manhattan. Get used to it kids cuz it’s just the beginning 🙂 (from your local 15yr experience RE broker)
You said it all, agree 100% when more people realize how nice and convinient is the neighboard; the prices will start rising even more, so enjoy this cheap prices while they last.
Dear 15yearKid, Your contempt for humanity is common among the trading class, isn’t it? You make nothing, offer nothing, and collect fees by making some people miserable and others into fools. Your opinion is worthless.
Why do you respond to a worthless opinion mate? Your life must be pretty empty to do so, correct? And btw he was just saying facts not opinions.
Alternate headline: “Supply of renters with zero negotiating skills runs low”
Welcome to the Bridge and Tunnel Crowd. I pay much, much less than you for membership John. You really are a fool.
Anyway, better news has never been heard in the B &T-land. Now maybe idiots like J will just stay home instead of becoming dupes for the real estate, bank and their various debased factotums.
Stop smoking that, and start writing in English next time please, thanks. You are a joke and you know it. 🙂 cheers!
I’m happy paying 3,300 for my 1bdr apt. ,and I would even pay more. Im one stop away from Grand Central, but when I’m home I have the peace of mind that I would have living in Ohio. I LOVE IT!!
You are such a douche! 3300 for a one bedroom. Loser.
Well …if you cant afford it; who is the loser?
You may found something more appropriate to you and your budget in Staten Island my friend! cheers.
If you can throw away $3,300 without building any equity, clearly your the winner that can’t make a down payment on owership. Maybe if you didn’t blow your entire check on rent. Hmmm.
They wouldn’t qualify for most buildings if they couldn’t afford it. It’s just that simple.
My company sent me to NY for 2 years so I have to rent. And that’s not even the point, if you base your income in the equity of a property then I feel bad about you. There are thousand of better ways to make money than an equity lol!!! As I said before, I feel bad that you can’t afford to pay 3,300 in rent, you should consider different neighboards or NJ maybe.
Well said lol…
For a walk-up one bedroom rental @ $2,230, you could find something in Manhattan.
Seriously, anything other than luxury in the 5 boroughs means you’re sharing your apartment or building with roaches and/or bedbugs. These landlords have some nerve charging those prices. Clean your damn buildings before you get cocky thinking you deserve that much!
These prices are crazy but it is what you pay to play in the big city. I love my LIC view though. For $1900 I get a view and 2 stops from midtown.
Anything other than luxury is full of bedbugs and/or roaches? Stop being such a puss