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Brooklyn and Queens' Lower Cost to Entry Drives Surge in Housing Prices
- 2 days ago
- 2 min read
The New York City housing market remains hot, with Brooklyn in particular showing impressive gains. The borough posted median and average apartment prices of $840,056 and just under $1.1 million, according to data from real estate firm Brown Harris Stevens. Both were record highs and were up six percent from 2024.
Queens also posted a solid performance, with average apartment prices slightly above 2024 levels at $511,007 and 1-3 single-family unit homes surging by eight percent to $1.02 million.
The Lower Cost of Entry Attracts Developers
New York-based CRE brokerage One Realty noted that Queens and Brooklyn are standing out in the area, thanks to their less expensive nature compared with Manhattan.
"While the price points are lower, the entry level market has been really healthy, and that's despite these high interest rates," Ellen Qian, Managing Director at One Realty, told GlobeSt.
She added that she expects interest rates to continue declining, which would "bolster the entry-level market" even more.
Also, Qian calls Queens and Brooklyn "approachable" luxury markets. She points to the success of one of One Realty’s premier developer clients, New Empire Corp, a New York City-based developer that's completed more than 120 residential and mixed-use projects. This includes condo developments such as 567 Ocean Avenue in Brooklyn and The Neighborly in LIC.
"What New Empire has done for many years is provide an elevated luxury product with advanced design and with high-end finishes and amenities to that sort of approachable luxury, somewhat entry-level market, so that buyers who want to be in these neighborhoods are able to experience an impact and level lifestyle," she explained.
Corridors and Green Space areas Will be Future Hot Spots
For future development, Qian predicts that transit corridors will be hot spots for future residential developments.
"As long as we're along Main subway thoroughfares, that's where you're going to see a lot of development," she said.
"When you're in that sort of central location, that becomes a great area for development, even if there aren't the benchmark projects previously that made that same determination."
Additionally, green space is another factor. She lists Prospect Park in Brooklyn and the northern side of Central Park as potential spots in the future where firms might want to build.
New Potential Housing Policy Isn't Scaring NYC Investment Yet
Meanwhile, Ellen Qian highlighted a trend she expects to see in 2026: more homebuyers will come off the sidelines in anticipation of mortgage rates falling more. She added that much of the uncertainty and fear that surrounded the Mayoral race in 2025 has now subsided, even though rent control was a big part of Mayor Zohran Mamdani's campaign.
"New York City is the only truly international city in the United States. It is one of the world's cities for a reason," Qian emphasized.
"We all believe in New York City, and there's going to be a tremendous amount of continued growth over the year ahead... this is the year where the engine keeps going and the train keeps moving forward."
One trend that Qian noted over the past year or so that has picked up is firms acquiring sites to build on. And that may only continue with interest rates coming down.
