BY ARIEL HERNANDEZ
A new rental report for Manhattan, Brooklyn and Queens during the April 2016 month in comparison to the April 2015 report was recently published by Miller Samuel Inc. Real Estate Appraisers and Douglas Elliman Real Estate.
This report focuses only on Northwest Queens, which includes Long Island City, Astoria, Sunnyside and Woodside.
The Queens Tribune spoke with the president of Miller Samuel Inc. and author of the reports, Jonathan Miller.
“My emphasis on price trends is heavily weighted to using median rent because median rent removes the highs and lows and gets the middle,” Miller said. “What we had in the median rent is that prices were down 0.4 percent which means that there certainly wasn’t any growth.”
According to Miller, the market’s soft price trend is something that he’s seen over the last six months.
Because of the amount of new developments and rentals that have recently been built in the Long Island City and outlining areas, there was a 46.1 percent increase in listing inventory.
“The growth of inventory is keeping prices from rising,” Miller said. “But because there is a decline in new leases signed does not mean that there is a weaker demand. All we’re seeing are new leases being signed.”
If you’re renting an apartment, your lease is up, your landlord proposes an increase, and you agree and sign, then that is considered a renewal. However, if you disagree or decide to move, that apartment becomes vacant, someone else moves in, and then that is considered a new lease.
“An increase in renewals versus the 7.6 percent decrease in new leases means that landlords are in better shape,” Miller said. “It’s a good thing.”
Miller said that the Queens rental market by size has been seen across the other boroughs and has resulted in a general rental market condition of New York City,
“If you look at median rents, about 19.9 percent of all the rents in April were from new development,” Miller said. “This is a general condition in the rental market and is a pattern that we’ve been seeing for years.”
Median rent for studios is down 1.4 percent, median rent for a one-bedroom is down 10.3 percent, median rent for a two-bedroom is down 27.8 percent, and the median rent for a three or more bedroom is down 34.3 percent. According to Miller, the reason for the decrease is because new developments tend to skew towards larger units.
The entry threshold, $3,350 , of the luxury median rent at the top 10 percent of the market decreased 6.9 percent in comparison of the overall market which fell 3.5 percent.
“Usually the Queens median rent is far less than Brooklyn,” Miller said. “Generally when we compare Brooklyn and Queens there’s usually a $300 to $400 difference. These reports show that Queens median rent was only $27 less than Brooklyn median rent.”
Miller said that from a general standpoint, the Queens median market is consistent with the other rental markets in NYC that were covered within this report in the sense that there has been no price increase and the markets are all soft at the top.
“Northwest Queens is no different than the rest of the city,” Miller said.
Although Miller focused on Northwest Queens for this report, he plans to expand to the rest of Queens in the near future.
“I’m a data quality person so when we started these reports, we were only looking at Manhattan,” Miller said. “Then we expanded to part of Brooklyn, then Brooklyn as a whole. Now we did part of Queens and we’ll continue to expand the coverage.”
Reach Ariel Hernandez at (718) 357-7400 x144 or firstname.lastname@example.org