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Several New Rental Buildings Open Putting Pressure on Prices

22-22 Jackson Ave.

22-22 Jackson Ave.

July 27, 2016 By Christian Murray

Several luxury buildings opened in Long Island City in the past quarter putting downward pressure on rental prices.

In the past quarter, 22-22 Jackson Avenue hit the market; so too did Halo LIC at 44-41 Purves Street; The Baker House at 41-07 Crescent Street; the Lunar at 42-15 Crescent Street; and other Long Island City developments.

“Close to 1,000 units opened in the quarter,” said Eric Benaim, chief executive of Modern Spaces, which released its second quarter market report this week.

The average rent for a luxury Long Island City apartment softened during the second quarter, compared to the same three months one year prior (click for report).

The amount paid for a studio was $2,473, down nearly 3 percent from 2Q2015. The average price paid for a one-bedroom unit was $3,143, about the same as 2Q2015.

Meanwhile, the average paid for a two-bedroom unit was $4,338, down 9 percent compared to 2Q2015, while three bedrooms fell 14 percent to $5,755.

Halo LIC

Halo LIC

Benaim said that the softening represents a wave of new buildings that have come to market and anticipates that rental prices will level off later this year when it’s absorbed.

However, the market may soften again, Benaim said, when several new buildings open next year.

At least 2,000 luxury rental units are expected to come to market in 2017, Benaim said, as a number of developments are expected to be completed.

Rockrose’s project at 43-25 Hunter Street; the Watermark Court Square project on 44th Drive; Brause Realty’s Purves Street project; and an array of Queens Plaza buildings are all expected to open.

The market for condos appeared brighter, according to the report.

The average amount paid for a condo during the second quarter was $1,178,304, up 26 percent from $935,422 in 2Q15. However, the increase was, in part, due to the number of larger apartments sold.

In the past quarter, 62 percent of the units sold were two bedrooms and 9 percent were three bedrooms. In 2Q15, there were no three bedrooms sold and 57 percent of the units sold were 2 bedroom.

The average price paid for a two-bedroom condo in the quarter was $1,177,695, almost unchanged from the same quarter a year ago. That number was $1,188,182.

Benaim said the two-bedroom numbers were flat because more inventory was available. Typically, inventory is tight.

 

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37 Comments

MRLIC

Doug, you are right. Where is the so called” affordable housing”? It;s certainly not a 1.1 million dollar condo isn’t it.?




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MRLIC

Mac, I am not struggling here in LIC but many are all over NYC. LIC wasnever for the rich until King Bloomberg made it that way. You are an Elitist, looking down on the less fortunate. Go live in the Hamptons or Rodeo Drive in California.




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MRLIC

Mac,I am not struggling here in LIC. It has changed not for the better. People like you ruin it fir everyone. You are elitist and look down on others less fortunate. LIC never was just for wealthy people as it is now. Why don’t you go live in the Hamptons or Rodeo Drive in California?




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Doug

Who was it that said we’d build “affordable housing” for New Yorkers? Not happening in LIC either.




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MRLIC

Continued……I think the residents of those projects deserve a bit more credit than you give them. Instead of looking down on others if they get ahead, I believe many would help the less fortunate since they were once in the same situation themselves. The Bulldozers will never come to these 2 Projects.




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MRLIC

Frank, I know I am considered poor in NYC, but not other cities. NYC is for the rich as I always say. The middle class is now 112k+. Unfortunately many even some 2 income homes don’t meet middle class standards. I am sure the people in QueensBridge & Ravenswood projects love your opinion of them.




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Frank

As long as the Queensbridge resident remain a net drain on society, I could care less what they think of me. There are plenty of example of cities moving public housing as neighborhoods have changed. If the City had any sense, it would buy land further out in Queens, build higher density housing for the current Queensbridge residents (say, 300 sq feet per resident), and make a killing selling the land here to developers.




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Mac

-MR LIC I have posted on many occasions to you…if you can’t cut it here move. People who can’t cut it in places like NYC, San Frsncisco and Seattle are moving to Texas, join them and stop crying. It’s natural selection and you’ve obviously have been weeded out. You’re mediocre at best and living here seems to be a struggle for you. Stop killing yourself. You’ll at least have a fighting chance in Texas the new Mecca for the mediocre. It’s the ideal place for you and yours. An utopia of like minded under achieving mediocre cry babies who are way in over there heads on the east and west coasts.




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MRLIC

Continued….. for someone who wants to bulldoze the Queensbridge & Ravenswood Projects , I am sure those people (The POOR) would want you and the other so called middle class to move.




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Frank

The data seem to contradict your opinion on what middle class is in NYC. Let’s see…should I believe data or the rants of an unhinged crank on the Internet with a bowling alley fetish?

Regarding Queensbridge residents, as soon as they start paying market rate rent, their opinion on who else is in the neighborhood will start to matter. Until then, fire up them bulldozers!




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MRLIC

Frank,middle class means what it says middle class. Not many places have these rents and call them middle class. When have you ever heard a 1.1 million dollar condo is middle class? LIC was never like this and unfortunately it is now. I am sure the so called middle class here are stuffy like you and would want me to move.




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Shouldn't you be bowling?

Nope, you’re confused yet again, that is for a single income. You deride the 1% but have absolutely no idea what the top 1% of New Yorkers even make, or who qualifies as the 1%!

Yes, people making 50-60k here qualify as “moderate income”. They qualify for subsidized or discounted housing lotteries FOR THAT REASON. It’s incredible how completely uninformed you are. Maybe you should learn a little about the city you live in.




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MRLIC

Shouldn’t you be bowling –I guess you mean 2 income families equal 100k+. NYC truly is a city for the well off and 1%. I can’t wait to move to another state when my wife retires and be with the real middle class. I guess in NYC I’m poor. What about single people making 50-60k I guess they are poor too, not to mention single people who make under 50k. What a city!!!!!!!!!!!




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Frank

MRLIC – you have some of the strangest hang ups. The “real” middle class? You do realize that middle class is relative to the income spectrum of a given area, right? With an attitude like that, I imagine there are many here who can’t wait for you to move either.




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MRLIC

I guess I didn’t realize 100k is the new middle class. I don’t know how a million dollar condo is for the 1%. I and my wife don’t know many people that can afford these rents.




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J-MGLIC

The NY City Council defines middle class as follow: “Here in New York that means income between $66,400 and $199,200. Lower Middle Class would be $53,120 to $66,400 and Low Income would be anything below $53,120.”
That’s a lot of “middle class” to choose from!!!




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MRLIC

Wow !!!! I guess I didn’t realize 100k is middle class in LIC. I don’t know many people who can afford those rents. The million dollar condos are not just for the 1 %? How can the middle class afford that? We truly now live in a city for the well off and rich. Sad.




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MRLIC

Wow !!!!!!!!!!!! I did not realize middle class has gone up to 100k to live in LIC. This is the new middle class. We do live in a city for the well off and rich. I don’t know too many people that can afford these prices especially the 1 million plus for condos.




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Drumpf Lover

I have heard anecdotally from many broker friends that they see cracks forming in the real estate market in LIC. They told me to sell now. Anyone in the industry have any thoughts about this?




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Anon

Because the neighborhood is overdeveloped, right? No thought process put into any of it at all.




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Anonymous visitor

One…Most Real Estate agents typically do not have the knowledge to predict this.
Two…All the over development is rentals. Due to very few condos being built, should keep prices high. Especially on the water front.
Three…LIC is still cheaper then many parts of Brooklyn with shorter commute to city. Plus L train shutting down can increase demand in LIC.
Four…If NYC falls, everything will fall with it. LIC will not just fall alone, there is no data to back that up currently.
Five…Your broker porbably just wants to make a commission to sell your condo




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PO

There is no way you should be paying $1200 psf for a condo here. Outside of the easy commute into the City, what is the justification for these prices? It lacks the cache (and character) of Brooklyn and the schools are just meh. It’s filled with young professionals that would rather live in the City or Brooklyn but can’t afford it. If you look closely, a lot of the condo’s are being picked up by foreign investors who rent the units out. LIC will always be a transient neighborhood unless the infrastructure is significantly improved.




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LIC 1%'er

Outside of a couple of places in Brooklyn, the transportation options are just ok. By the thundering horde of brooklynites taking the G to Court Square in order to commute to midtown every morning, I’d say it’s only a matter of time before some of those folks start moving in our direction.




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brooklynmc

Yeah, the 1% rents pseudo “luxury” apartments in Queens and consists of two-income families that live in 1 BR apartments with the kids in the BR and the parents in the living room. I live in those “ivory” towers and know many people. There are very few 1%’ers in LI City.




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brooklynmc

Yeah, the 1% rents pseudo “luxury” apartments in Queens and consists of two-income families that live in 1 BR apartments with the kids in the BR and the parents in the living room. I live in those “ivory” towers and know many people. There are very few 1%’ers in LI City.




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MRLIC

Who was it that said the 1% are not moving to LIC? A studio $2,473, a one-bedroom $3,143, a three-bedroom $5,755…..WOW !!!!!!!! These are prices that have come down, mind you. Condos are up to $1.178,304. These prices don’t sound middle class to me.




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brooklynmc

The 1% is not moving to LI City. The 1% does not rent, especially not pseudo “luxury” buildings in Queens. The 1% does not consist of two-income families that are barely making it. It is no secret that New Yorkers pay a larger percentage of their income on their homes than the majority of the country. I live in these “ivory” towers on the waterfront and I have yet to meet a rich person. Yes, there may be a few 1%’ers, but not many. My neighbors are 3 hardworking, young Chinese women who share a 2 BR. The people I know that are in studios, split the rent with their girlfriends. Once people have children, they feel the pinch. There are many families in 1BR apartments. The kids get the BR and the parents live in the living room. That is not how the 1% lives. For someone who has lived their entire life here, you really don’t seem to understand.




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Frank

These are affordable with a dual income ~$200k house hold. That is pretty middle class in NYC, i.e., each person making slightly over $100k. Remember the complaint from a plumber a few weeks ago here on the LIC Post that he was making “only” $100k?




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brooklynmc

Problem is that many of these duel income families have kids and therefor have to have a full-time nanny and since many schools here are not great, that could mean private school.




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Anonymous visitor

And they also are probably still paying off their student loans and trying to put away some money to buy a place. Lets face it, you need to be pretty loaded to afford to live in New York. Yes, that means you are more likely to be a 1%’er or some money from your parents. Middle class, my ass.




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Shouldn't you be bowling?

To be in the top 1% in NYC you must earn $600k or more. These apartments can be afforded by someone making as little as $100k. So maybe those prices would “sound middle class” to you if you had any knowledge of the facts at all.




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Anonymous visitor

Are you serious? A single person earning $100K CANNOT afford a studio going for about $2,500. Two people making that salary would have to double up in one of those apartments to hope to enjoy any semblance of a middle-class lifestyle.




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Shouldn't you be bowling?

Brokers go by the 40x rule. If your rent times 40 is equal or less than your gross income, you can afford it.

How much do you think $2500 x 40 is?




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Anonymous visitor

I don’t care what brokers say — you guys are con men. I don’t know anyone earning $100,000 with $2,500 rent who has a comfortable “middle-class lifestyle” in NYC — meaning, I assume, an occasional vacation, enough disposable income for entertainment and clothes, and enough to save for retirement. Stop fooling people and treating them like mugs.




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J-MGLIC

The NY City Council defines middle class as follow: “Here in New York that means income between $66,400 and $199,200. Lower Middle Class would be $53,120 to $66,400 and Low Income would be anything below $53,120.”
That’s a lot of “middle class” to choose from!!!




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