Amazon’s announcement to equally split its second headquarters between Long Island City of Queens (LIC) and Crystal City in Arlington, Virginia, certainly affected the specific neighborhoods as well as surrounding areas. The retail giant’s move to LIC and Arlington has got people on both sides of the spectrum. Some are excited and others remain skeptical about Amazon’s impact on New York City’s residential market.
According to a PropertyShark report, there is a noticeable spike in listing views traffic. Views on Long Island City listings page increased by 198 percent, almost triple the views since November 12 after the announcement.
On account of easy access to “Amazon Island City” and a heightened increase in homes in surrounding areas, the rate at which property prices grow is expected to accelerate in LIC, the report indicated. Astoria and Sunnyside are among neighborhoods where home prices will take off, while areas along Metro Line 7 will boom as well.
Long before Amazon’s descent on LIC, the neighborhood experienced a surge in interest as well as home prices, with a median home price saw an increase of 35 percent in the last five years. Over the years, LIC has attained the tag of the most expensive and refined neighborhoods in Queens from the industrial district that it used to be.
“Prices along various subway lines are going to rise by 25-40 percent. Neighborhoods that have been stable for generations are going to get gentrified and existing residents pushed out,” said Matthew Haines, real estate investor and founder of PropertyShark.
According to PropertyShark, in the last five years, median home sale prices increased 35 percent, reaching a peak of $435,000 in 2017 and year-to-date, the median sits at $350,000, a drop of about 20 percent. The median home price is more than likely to increase at a much faster pace and drive demand in the near future, the report noted.
The report found that median home prices in Hunters Point and neighboring areas are expected to reach $1 million soon. Hunters Point, Sunnyside, and South Astoria will all see an increase in home prices, rents, and new developments. Median home prices in Hunters Point will reach $1 million in the near future from the current median of $875,000. Sunnyside and South Astoria boast medians of $390,000 and $650,000, respectively.
Areas in Queens are geared up for growth along major thoroughfares, metro lines, and bus lines that provide direct access to LIC, the report indicated. Neighborhoods further east in the borough are considered affordable compared to Queen’s pricey waterfront neighborhoods. Gentrification is likely to spread eventually to neighborhoods such as Jackson Heights, Elmhurst, Corona, and Downtown Flushing due to direct access to Long Island City from these areas.
Brooklyn will also see an increase in prices with Greenpoint at a median home sale price that surpasses $1.1 million. The upward trend is likely to continue in Williamsburg at $940,000, Bedford-Stuyvesant at $770,000 and Clinton Hill at $800,000.
While the discussions are ongoing about how positive the impact of Amazon in both the communities, there will certainly be an upsurge in rising rents, home prices and living costs leading to further gentrification and new developments, the report concluded.