Jan. 30, 2023 By Christian Murray
The Long Island City condo market proved its resilience in 2022, with significant price increases and strong sales volume.
The median price paid for a condo in Long Island City last year was $1.11 million, up 12 percent from $998,000 in 2021, according to the 2022 Year-End Long Island City Condo Report. The report was produced by Patrick W. Smith, an independent real estate analyst and Long Island City-based agent affiliated with The Corcoran Group.
The report revealed that 2022 represented the second biggest year in Long Island City in terms of sales volume, surpassed only by 2021. Last year, $608 million worth of condos were sold in the neighborhood.
The report is based on closed condo sales within the confines of 37th Avenue to the north, Borden Avenue to the south, the East River to the west and Northern Boulevard to the east.
The numbers were strong, in part, due to a banner year for luxury apartments.
Smith said that there were more condos that closed above the $2 million mark in 2022 than in previous years.
Smith, defining the luxury market as the top 10 percent in terms of sales price, said that the average luxury apartment sold for $2.18 million last year, a record. There were also 28 sales above $2 million, up from 23 in 2021.
In 2022, a top floor condo at Aris Lofts sold for $4.8 million, the highest ever recorded in the borough, Smith said.
Smith attributes the resilience of the Long Island City market to the small condo supply, with other variables such as the growing number of quality public schools in the area and the influx of national retail brands such as Trader Joe’s and Target.
“We have an excellent school district, an increase in retail offerings, excellent transportation and great parks,” Smith said.
Long Island City, he noted, also remains at a significant discount to Manhattan. For instance, the median price paid for a Manhattan condo in the fourth quarter of 2022 was $1.65 million, according to a Miller Samuel Elliman report.
The prices paid for Long Island City condos, while substantially less than in Manhattan, saw strong price growth last year.
According to Smith’s report, there were 212 one-bedroom condos that closed in 2022, with the median price fetching $957,000—up 7 percent compared to 2021.
Meanwhile, there were 198 two-bedroom condos that closed in 2022. The median price was $1.40 million, up 3 percent from 2023.
Smith said the luxury market got a boost from families returning to the city and choosing Long Island City as the place to live.
“I think we started seeing people [families] at the higher end relocate back to the city for work,” Smith said. “We saw that reflected with the sale of larger units with larger outdoor spaces.”
Smith said that there are signs that the market is softening, although maintains that Long Island City’s core strengths make it less vulnerable to a price correction than other areas.
However, he did note that many buyers in Long Island City are first time homeowners and are affected by higher interest rates, which has been putting downward pressure on real estate prices across the nation.
Smith’s data indicates that the upward trajectory of the Long Island City market did flatten in the second half of 2022, with the average price paid in the fourth quarter being $1.19 million in comparison to $1.24 million in the second quarter.
However, the average amount paid for a condo in the fourth quarter was 2.3 percent higher when compared to the fourth quarter of 2021.
“I think the market today is probably now favoring buyers more than sellers,” Smith said. “But I think that buyers are surprised to see it’s not as extensive as they may have anticipated.”