Queens Multifamily Report – Fall 2019
Unrestrained by this summer’s new statewide regulations, rents in the New York City borough rose sharply over the past two quarters.
Queens rent evolution, click to enlarge
Unrestrained by this summer’s new statewide regulations, Queens rents rose sharply over the past two quarters. At 5.3 percent year-over-year through August, rent growth in the borough’s working-class Renter-by-Necessity segment was the highest across the metro. The average RBN rate surpassed the $2,000 mark for the first time this summer, reaching $2,031.
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New York City added 111,500 jobs in the 12 months ending in August, marking a 1.5 percent increase. Long Island City continued to be Queens’ main development engine, with several large-scale projects underway. The borough’s pipeline also includes Flushing Commons, a 1.8 million-square-foot megaproject, and the 17-acre Willets Point redevelopment. Furthermore, Queens’ airports are undergoing major revamps. Apart from the $8 billion LaGuardia overhaul, American Airlines and British Airways announced a $344 million investment at JFK’s Terminal 8.
Queens sales volume and number of properties sold, click to enlarge
Queens is on track to score a new development cycle peak, as more than 2,000 units already came online this year through August. Investment sales of larger assets, however, have shifted down a gear due to regulatory uncertainties before June, and might linger while investors weigh the effects of policy changes. With new supply and demand in relative balance, we expect the average New York City rent to increase just 1.3 percent in 2019.
