Queens Multifamily Report – May 2023
Meanwhile, the workforce segment is treading water.
Queens rent evolution, click to enlarge
A slowing economy and other woes have affected the borough’s high-end rental sector, exacerbating the divide between quality segments. Overall, Queens rents were down 0.7 percent on a trailing three-month basis, to an average of $2,788, while U.S. figures plateaued. The metro’s slide was due to a sharp 1.4 percent drop in the Lifestyle segment, while Renter-by-Necessity rates saw a 0.1 percent uptick. Occupancy was still very tight, at 98.7 percent, following a trend-bucking, 10-basis-point increase year-over-year, showcasing New York City’s enduring multifamily appeal.
Queens sales volume and number of properties sold, click to enlarge
New York City employment saw steep losses during the pandemic, and the market has been striving to recover the jobs lost. New York City added 289,500 positions in 2022, for a 5.0 percent uptick, outperforming the 3.7 percent national rate. No sector lost jobs last year, as strong gains in education and health services and leisure and hospitality provided boosts. Spanning five city blocks, Innovation QNS is one of the largest development projects in the metro, set to take shape in Astoria.
Queens. Photo by Alex Potemkin/iStockphoto.com
Transaction activity has been limited, with only $640 million in rental assets trading in the borough since 2019, $340 million less than 2018’s total. Development rebounded after a tough stint during the early days of the pandemic, with 2,517 units delivered in 2022. Another 11,628 apartments were under construction in Queens as of March.
