L train services between Manhattan and Brooklyn are expected to shut down for at least 18 months in late 2017 to repair damages caused by Hurricane Sandy, and commuters who rely on the train to get to work might start looking for apartments elsewhere.
NYC real estate professionals expect rents to diminish following demand in the neighborhoods along the L train line over the construction period, including Williamsburg and Bushwick.
[graphiq id=”gXyz6u392cd” title=”Transportation in New York City” width=”600″ height=”533″ url=”https://w.graphiq.com/w/gXyz6u392cd” link=”http://places.findthehome.com/l/71121/New-York-City-NY” link_text=”Transportation in New York City | FindTheHome”]
[Tweet “NYC real estate professionals expect rents to diminish following demand”]
Worst case scenario, the train could be out of service for three years, potentially causing rents to drop in those communities over a prolonged stretch. But that’s if the Metropolitan Transportation Authority decides to work on fixing one tunnel at a time versus a complete shutdown; no agenda has been released as of yet. Gothamist reports that the organization is considering operating one tunnel while fixing the other, so at least some customers can continue their everyday route without interruption.
The Canarsie Tube, which transmits the L train under the East River between Brooklyn and Manhattan, has about three miles of concrete, cable, signal and rail damage in need of mending. The L train transports as many as 350,000 riders per day, so the upcoming closure has current Brooklyn homeowners concerned about their commutes.
Meanwhile, Brooklyn renters could be wondering if it’s worth resigning their leases since finding alternative routes to work and elsewhere may not be worth the hassle. But with an anticipated 15 percent drop in Williamsburg rent prices, perhaps the temporary inconvenience is worth finding alternative transportation.
According to the MNS January Market Report for Brooklyn, the current average rent is $2,717 — a slight .2 percent increase from December.
Williamsburg average rent prices have increased 2.55 percent year-over-year. As of January, the average studio in Williamsburg costs $3,024, the average one-bedroom $3,217 and the average two-bedroom $3,989. The neighborhood isn’t exactly cheap, so a 15 percent price decline on a studio, for example, would award renters with a decent discount.
Fortunately for homeowners, experts say home values are likely to withstand the temporary construction, regardless of the unfavorable construction timeline and unanswered public concerns.
Brooklyn business owners and residents held a meeting regarding the potential ramifications the L train shutdown could have on the local economy in late January. Peter Levitan, Brooklyn’s Real Estate Board of New York committee chair, commented on the lack of information being provided to the public by the MTA regarding the closure.
“It’s important to look at the trouble it’s currently causing. I think there’s already been a lot of damage, just on the speculative nature of not knowing what’s going to be done,” he said. “I think the brokerage community has already seen a lot of businesses pulling out of deals, not being able to make decisions because they don’t know what is what.”
While the MTA hasn’t commented specifically on how commuters will get to work in the event of a complete shutdown and if buses or ferries will be provided in lieu of train service, MTA spokesperson Adam Lisberg confirmed “anything and everything will be on the table” regarding the project.
