Prices are cooling off in the hot Long Island City rental market as values for studios, one- and two-bedroom apartments have dropped considerably since May, according to the September Queens Rental Market Report by MNS Real Estate.
Studio prices in the neighborhood have fallen for four consecutive months, from an average of $2,602 in May to $2,293 in September, the report found, while one-bedroom apartments dropped an average of $90 since May. Two-bedrooms in the neighborhood increased slightly in September, but still remain more than $235 less than May’s prices.
The decrease in prices in the neighborhood are due to “a result of a maturing luxury rental market,” according to the report, which also pointed out that Long Island City still accounts for the highest average rents in the borough in all categories.
Overall rent prices in Queens increased slightly at 0.63 percent to $2,047 in September from $2,034 in August, while apartment inventory also jumped seven percent to 631 units.
However, Astoria, much like its neighbor on the waterfront, saw overall rent prices drop despite trending up in recent months. The overall average rents decreased 5.35 percent in the neighborhood during the month, the biggest decrease in Queens.
Studios saw a notable drop in Astoria, falling 11.04 percent or $205 during the month from $1,860 in August to $1,655 in September.
A surprising increase came to Rego Park, as studios in the neighborhood stopped months of falling and dramatically increased 17.67 percent to $1,559 in September. The increase, which was exclusive to studios in the neighborhood, is a result of new luxury developments, the study found.
“A notable growth spurt continues to take place in Rego Park,” the report said. “This is the result of newly available units in high-end new developments and conversions led by The Contour at 97-45 Queens Blvd. and, more recently, The Rego Modern at 99-39 66th Ave.”
The neighborhood with the largest decrease of the month is Flushing, where one-bedroom apartments saw a stark drop of 12.88 percent or more than $220 from $1,762 in August to $1,535 in September.
Click here to see the full report.