June 16, 2020 By Allie Griffin
More than 20 percent of Long Island City rentals were discounted below the listed rent on StreetEasy in May– as economic uncertainty spurred by the coronavirus pandemic seeps into the New York City real estate market.
Long Island City saw one of the greatest amount of discounted units in Queens, a newly released StreetEasy study shows. About 21 percent of rentals in the neighborhood were discounted last month — compared to just 10 percent in May 2019.
The rental discounts — or cuts made to the rent after they have been advertised on StreetEasy — show that demand for apartments is declining.
Sunnyside and Glendale had significant numbers of rentals discounted below the listed rent last month as well — about 31 percent and 30 percent of units were discounted respectively.
Queens overall saw 18 percent of its available rentals discounted in May, compared to about 14 percent the same time last year, according to the study. That’s behind Manhattan and Brooklyn which saw the most discounted units with nearly 27 percent and 22 percent respectively.
“Lagging interest in the unit at the expected price is an indication of a changing market — and a prompt for the landlord to offer a discount,” the study states.
The higher number of discounts could indicate New York City rents may start falling soon, according to the report.