Jan. 19, 2016 Staff Report
Rental prices fell in Long Island City toward the end of 2015, as hundreds of new rental units hit the market, according to the latest market report released by real estate firm Modern Spaces.
Average rental prices in luxury, elevator and walkup buildings were lower in 4Q 2015, compared to the fourth quarter of 2014.
The average luxury rental price dropped more than $100 per month, from $3,870 in the last quarter of 2014 to $3,763 in 4Q2015. One bedroom luxury units fell slightly from $3,096 in 4Q2014 to $3,027 in 4Q2015. Two bedroom luxury units fell from $4,326 to $4,290.
Meanwhile, the average rent in an elevator building for the fourth quarter 2015 was $2,906, compared to $2,963 for the same quarter in 2014. The average walk-up cost $2,425 in 4Q2015, compared to $2,458 one year prior.
Modern Spaces CEO Eric Benaim said the drop in prices was a “direct result” of a “new wave of development hitting the market.” He cited in particular QLIC near the Queensboro bridge, with more than 400 units, and, significantly, the nearly 1,000 units brought online by the Hunters Point South affordable housing development.
“A lot of the people who lived in the other [nearby] buildings were applying [to HPS] too, so the rest of the buildings in the neighborhood obviously lost tenants,” Benaim added. “[That] put more inventory into the market which then added to the fact that the price took a little bit of a dip.”