A report released by Modern Spaces found that the average condo price in Long Island City has seen a large increase in the past year, but that the rental market will continue to stabilize as more units are introduced in the market.
The Orange Report examines the real estate market primarily in Long Island City and Astoria and the changes in prices in the condo and rental markets. The average condo price in Long Island City has increased 25 percent from 2015 to 2016, according to the report.
The average price for a one-bedroom condo during the fourth quarter of 2016 was $881,608 while the price during the same time in 2015 was $782,976.
The average price per square foot in the condo market has also continuously increased since 2013. Currently, the average price per square foot for a condo in the neighborhood is $1,122.
Long Island City’s rental market has seen a decrease in average price per square foot. Arlinda Dine, executive director of marketing at Modern Spaces, told QNS in October that rental prices in the neighborhood would stabilize soon as about 20,000 rentals come to the market in the near future.
She also predicted that Astoria’s condo market would continue to grow and since last quarter the average price per square foot in Astoria has risen 11 percent, though that number is mostly attributed to The Marx Condominium.
Rental rates in Astoria have not seen a huge shift. According to the report’s Astoria Rental Snapshot, the average rental price rose from $2,446 last quarter to $2,565 in the fourth quarter of 2016. During the fourth quarter of 2015, the average rental price was $3,131.
Modern Spaces predicts that prices in “emerging markets” such as Flushing, Jackson Heights, Woodside, Sunnyside and Rego Park will continue to rise as people are priced out of other neighborhoods.
In a chart comparing the average price for a studio in some of these neighborhoods, Long Island City and Astoria were unsurprisingly the most expensive. The average price for a studio in Sunnyside is $1,644 and in Rego Park that price is $1, 572. In Long Island City, the average rental price for a studio is almost double at $2,407.
“We predict that prices in these areas will continually increase as developments rise and the market strengthens,” said Eric Benaim, president and founder of Modern Spaces.
Click here to view the full report.
