In a Douglas Elliman report published today, the Queens rental market revealed median rents reached a new high for the second time in four months.
In northeast Queens, the average rental price in July was about $3,426. For a studio in the area, the average rental price was $2,773. A one-bedroom averaged at $3,134; a two-bedroom was about $4,142 to rent; and a three-bedroom and over averaged at $4,786.
The rental price for luxury properties in Queens average at $6,141. A new development rental costs about $3,778 and existing units averaged at $2,985.
According to Robert Glessman, executive manager of sales at Douglas Elliman, said that rents have continued to climb in Queens from 11% to 15%.
“Northeast Queens is pretty much dead even with rent prices in certain neighborhoods in Manhattan,” Glessman said. “Queens as a whole hasn’t seen such a robust rental market like this before. Long Island City has been equal to Manhattan rental prices for quite some time now.”
According to the Elliman report, both average and median rent, as well as net effective average and net effective median rent, set new records. According to Glessman, rents a decade ago were around $1,183.
The number of landlord concessions fell to its lowest level in seven years, according to the report: there was a rate of 6.6% new leases with concessions for the month of July compared to 12.3% for June.
Glessman attributes this low level of concessions to the high demand in rental housing.
“Landlords currently don’t have to offer free rent or pay commissions in today’s market,” Glessman said.
In Glessman’s opinion, rents are skyrocketing at a wildly fast rate due to a surge in demand following a period of vacancies during the height of the COVID-19 pandemic.
“In 2020 when the city closed down for COVID, many people moved out, which caused vacancies. People got great deals on rentals with many landlord concessions,” Glessman said. “Now with the city reopening and people coming back to work, the surge and need for housing created a very high demand.”
Glessman predicts the rental market stabilizing and rents dropping in 2023.