LIC, Astoria Growth Causing Buzz Elsewhere

NEW YORK CITY—The economic growth in Queens' neighborhoods such as Long Island City and Astoria is prompting residential tenants to seek more affordable housing in areas such as Sunnyside, Jackson Heights, Woodside, Rego Park, and Flushing.

According to a second quarter residential report released by residential brokerage firm Modern Spaces, the strong economies in Long Island City and Astoria are pricing out both apartment seekers and residential buyers there.

“Long Island City and Astoria continue to be the place to go as more and more people are priced out of Manhattan and Brooklyn. Due to this huge increase in demand, prices in these neighborhoods have skyrocketed and show no signs of slowing down,” says Eric Benaim, founder and CEO of Modern Spaces. “The good news is that renters and buyers are discovering different neighborhoods in Queens that are not only more affordable, but also offer a plethora of wonderful amenities that can be found throughout this unique borough.”

The report also shows that the average price per square foot of condos in Long Island City has remained above the $1,000-mark with the most expensive price being $1,622. This increase is taking the price of one-bedrooms over the $1-million price point and two-bedrooms starting to hit the $2-million mark there. While the condo market continues to reach prices not seen before, some good news is that the rental market, which previously experienced a huge jump in price, has leveled out with thousands of new rental homes slated to be built in the area, the report states.

Modern Spaces in its report notes that there has been little movement in prices in Astoria due to a lack of transactions. As buyers wait for new product to hit the market, the brokerage firm predicts that prices in the area will begin to rise mid-year with condos selling for $1,000-per-square-foot and rentals coming close to $50-per-square-foot.