The future IBX (Interborough Express) light rail in NYC will be a game-changer for residents of Brooklyn and Queens by providing a direct connection with a short ride between the two boroughs. One of the neighborhoods that will get an IBX stop is East New York, a historically industrial neighborhood that is not without its challenges, but is ready for more transit — and more housing.
The bustling neighborhood does not yet have many options for dining, shopping or entertainment, but its central transportation hub on Atlantic Avenue offers an array of transit options. It is steps away from the Broadway Junction stop on the A, C, J, Z and L subway trains, and the Long Island Rail Road.
The IBX, which is still in its design phase, would enhance transit and reduce outer-borough commuting time for area residents, as it will bypass Manhattan, unlike most other city trains. The MTA said a full ride on the train, making all stops on its planned 14-mile route, would not take longer than 40 minutes. The Atlantic Avenue stop is located in the middle of the route, making the commute even shorter for those who live in East New York.
East New York ripe for real estate investment
Housing is limited in East New York, at least right now. However, real estate experts shared their insights with amNewYork on how the IBX could potentially impact the well-known Brooklyn neighborhood.
Tonya Canady, a luxury real estate expert with Serhant, stated that the IBX will create numerous opportunities for luxury apartments in East New York.
“I’m reminded of when I purchased my home in 2002,” she said. “Some people said don’t buy it, but luckily I did, because now it’s worth over four times as much.”
She also said that there will be many benefits for residents when, or if, the IBX stops in the area.
“Whenever a neighborhood gains better transit, we tend to talk only about what’s coming in,” the real estate pro said. “Yes, there will be new buildings, investors, and businesses. But what matters is what grows from within. For homeowners, property values will rise, helping families build generational wealth.”
Small businesses will also see noticeable increases.
“Small business owners can also expect new foot traffic and more visibility,” Canady explained. “East New York already has the heart, the history, and the culture. The infrastructure is simply catching up.”
Todd Drowlette, managing director ot TITAN Commercial Realty, said New Yorkers should not expect luxury apartments in East New York right away.
“East New York getting a train stop does not guarantee luxury apartments will follow,” Drowlette, who stars in A&E’s new CRE reality TV show, The Real Estate Commission, said. “Many more things would have to happen in and around East New York before developers would be ready to risk dollars on being the first to try to gentrify the area.”
With NYC experiencing an affordability crisis for necessities from groceries to housing, the IBX could bring in more moderate opportunities for real estate and rent.
“The train stop will likely bring affordable housing developers increasing the affordable housing quality of units, which would create an upward push on rents,” Drowlette speculated. “As those types of projects and new single-family homes are built, then maybe five to 10 years down the road East New York might be at a stage to successfully deliver a luxury housing project.”
Is gentrification on the horizon for East New York?
Meanwhile, NYC and state officials are contributing to the initial stages of housing that Drowlette discussed. The city has rezoned the area of East New York to address the housing crisis, making it easier to build new homes. Plans include high-density residential zones, which permit larger projects, such as apartment buildings.
Developments like this could attract investors to develop a commercial area, thereby sustaining the neighborhood. Yet, there are also concerns that the new housing may gentrify the community, leading to increased housing costs for other residents to the point where long-time residents might be priced out of the market.
As recently as July 15, Mayor Eric Adams and other officials broke ground on an initial phase of the “Innovative Urban Village” housing development, which is poised to create 385 affordable and supportive homes at the neighborhood’s Christian Cultural Center’s campus on Flatlands Avenue.
Apartments built as part of the $271 million first phase of the development will be affordable to households earning up to 80% of the area’s median income; 94 apartments will be reserved for individuals who are formerly homeless. It is part of a larger vision to feature 2,000 homes, including supportive housing for New Yorkers transitioning out of homelessness, according to city officials.
The development will also include commercial space for a fresh food grocery store, officials said.
Current real estate trends in East New York
Single-family attached homes and apartments are available for sale in East New York and its surrounding areas, with prices starting at approximately $299,999, according to Zillow. The real estate site reports that the average East New York home value is $658,047, up 1.6% over the past year.
Experts agree that an IBX train stop would attract New Yorkers to East New York.
“The stop being added is certainly the first of many steps in the right direction to increase the desirability of East New York,” Drowlette said.
amNewYork will bring readers to the next planned stop on the IBX: Sutter Avenue.
