2nd Ave Subway has Made Upper East Side Even More Expensive: Study

UPPER EAST SIDE, NY — Land values on the Upper East Side — already some of the most expensive in New York City — are rising as the long-awaited 2nd Ave Subway project nears completion.

A recent study released by Real Estate website StreetEasy found that between East 72nd and 96th streets rents on 2nd Avenue rose 27 percent, rents of 1st Avenue rose 19 percent and rents of 3rd Avenue rose 14 percent since 2011.

The numbers reflect a willingness to pay top-dollar for transit convenience, according to the study, and once trains are running on 2nd Avenue rents only stand to increase even more. People living in the vicinity of East 96th Street will shed 14 minutes off a commute to 42nd Street but will add $462 to their median monthly rents. The same numbers apply for those living near 72nd Street, and people living near 86th street will take 10 minutes off their commute and expect to pay about $330 more for rent.

“Rising rents along 2nd Ave could indicate that New Yorkers and landlords are finally anticipating the opening of the subway line after decades of delay. 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," StreetEasy economist Krishna Rao said in a statement.

"The subway will also likely make the Upper East Side and Yorkville less affordable for some residents, and have a ripple effect on local businesses. There is a trade-off to every public project like this one as they transform the tenor and fabric of the surrounding area. A premium on transportation is inherent in the pricing of not only 2nd Ave, but the entirety of New York City.”

Phase 1 of the 2nd Ave Subway project will construct new Q train stops at 96th, 86th and 72nd street stations along 2nd Ave and connect the Q to the existing Lexington Avenue-63rd Street station. The additions made to the Q line along 2nd Ave are expected to support a ridership of 200,000 people.

The MTA has stated it plans to launch service on the new subway line by December 31, and has confidently backed up that assertion regardless of concern shown from its independent engineering consultant. The engineer has consistently warned that the MTA is at risk of falling behind schedule on work for the 72nd Street station and systems testing, which could mean a delayed opening.

But in what could be an optimistic sign, the MTA has begun driving test trains through the new stations. Check out a video of one of the tests here.

Photo: Metropolitan Transportation Authority via Flickr