Brooklyn and Queens' Lower Cost to Entry Drives Surge in Housing Prices
- Mar 4
- 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 Global 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 Global, told GlobeSt.
She added that she expects interest rates to continue declining, which would "bolster the entry-level market" even more. 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, which has completed more than 120 residential and mixed-use projects, including 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 high-end finishes... 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: The Future Hot Spots
For future development, Qian predicts that transit corridors will be the primary drivers for residential growth.
Transit Proximity: "As long as we're along main subway thoroughfares, that's where you're going to see a lot of development," she said.
Central Locations: Being in a central hub creates opportunity even in areas without previous "benchmark" projects.
Green Space: She identifies areas surrounding Prospect Park and the northern side of Central Park as high-potential zones for future builds.
NYC Investment Remains Resilient
Ellen Qian highlighted a trend she expects to see throughout 2026: more homebuyers coming off the sidelines in anticipation of mortgage rates falling further. She noted that much of the uncertainty surrounding the 2025 Mayoral race has subsided, clearing the path for investors.
"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. "This is the year where the engine keeps going and the train keeps moving forward."
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