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UES Rents Spike Along Second Avenue Subway, Study Finds

By Shaye Weaver | November 10, 2016 3:22pm

YORKVILLE — Rents along Second Avenue have increased substantially in the years leading up to the opening of the Second Avenue Subway, and will continue to soar in coming years, according to a report by StreetEasy.

Over the past five years, rents on Second Avenue have surged by 27 percent, compared to only 14 percent growth on Third Avenue and 19 percent on First Avenue, the study shows.

Yorkville, bound by Third Avenue to the FDR from 79th to 96th streets, is traditionally considered more affordable compared to the rest of the Upper East Side — home to blue collar workers and mom and pop shops.

But rents in that area are on the rise, with prices going $1,985 a month in 2011 to $2,520 a month in 2016, the report says.

And while it's still cheaper to live on Second Avenue than on First or Third Avenues, which currently have median rents of $2,554 and $2,873, respectively, rents on Second are expected to skyrocket in coming years, according to StreetEasy's experts.

"There is a trade-off to every public project like this one," said StreetEasy data scientist Krishna Rao. "A premium on transportation is inherent in the pricing of not only Second Avenue, but the entirety of New York City.”

Renters near the 72nd and 96th Street stations could see a rent increase by $462 a month based on a decrease of 14 minutes of commute time to Midtown, the study shows.

Those by the 86th Street station can expect an increase of $330 a month based on a decrease in commute time of 10 minutes, the study says.

StreetEasy makes predictions based on a study it did in the spring using 42nd Street as the destination point and looking at all MTA subway stations and rent prices near those stations, the group writes in its report.

The results of the study found renters will pay $33 per month more for every minute they save on their commute to 42nd Street, they said.

"Public transportation can be transformative for a neighborhood, increasing value through convenience and opening up the area to people who wouldn’t otherwise be able to access it easily,” Rao said.

The Second Avenue Subway's first phase, running up to East 96th Street from 63rd Street, is slated to open by the end of December, though the MTA's independent engineering consultant has warned that delays in testing might mean the deadline could be pushed back.

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