Real estate takes center stage in LIC once again. A recent study indicates that rents in LIC are catching up to those in Manhattan and now lease at only an 11% discount. There are probably a lot of moving pieces in that calculation, but it sounds about right according to my back of the envelope anecdotally-based analysis. For reference, that discount was closer to 25% back in 2008.
This occurs just as rents in NYC overall seem to have topped off per an article in the Real Deal which notes an uptick in landlord concessions, such as a free month’s rent. Hmm, these two data points sound familiar and seem to confirm a trend I recently predicted. Since I’m hitting my stride, I’ll offer another thought. This one is more of an opinion and one that I’ve shared before, but I have little doubt it will ring true were it to be enacted:
Upsizing real estate density1 in return for additional affordable housing requirements is a bad trade-off for anyone who doesn’t receive the new affordable housing. It will mean a degradation in quality of life for those already living here.
Most notably, the subway system will become overcrowded – there is simply no way to add additional capacity. Other problems for the neighborhood, Queens, and the city as a whole, include more crowded streets and additional traffic – also in an area to which capacity can’t be added; continued collateral damage to the current K-12 students as the heavy growth is dealt with, and more typical zoning quandaries like increased shadows/reduced sunlight.
The markets are working well enough as developers appear to be overdeveloping under current zoning allowances. This leads to a glut of supply and lower rents. Where housing prices will be a decade from now and what type of occupations will fill them should be a function of how they’re best utilized and personal preferences, not government tinkering.
//The Hunters Point Civic Association is holding the LIC Educational Forum next Tuesday, November 10, at 7pm at the NY Irish Center, 10-40 Jackson Ave. Come hear our Assembly member Cathy Nolan, who happens to chair the NYS Education Committee, as well as other community leaders discuss the local school situation and answer questions. Open to all interested.
On Rents, LIC is Catching Manhattan Nabes – “arguably the city’s most burgeoning neighborhood”
Concessions Pick Up as Rental Market Slows Down – sale prices are slipping too “those fears are fueled by the influx of new condos hitting the market”
A Guide to NYC’s Coolest Borough – Conde Naste Traveler asks insiders for their picks and also snarks “It’s Not Brooklyn”
Residents Talk City Housing Proposal – don’t let anyone talk you out of it – this is a bad deal for you
Bowling Alley to Open in LIC – Bowling? Ok, we’ll take it
Restaurant of the Week: Junior’s Cafe – more like a sponsored post, but the background’s probably of interest to some
- boosting the square footage allowed on a given plot size [↩]