Queens' Astoria Neighborhood Remains Undervalued Compared to Brooklyn, New York, But Prices Are Catching Up

Written by:

Alejandra Rodriguez

Date:

19 Jun 2026

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The outer boroughs of New York City have long been positioned as the affordable alternative to Manhattan, but what’s happening in Queens right now suggests something more nuanced than a simple affordability story. A steady stream of former renters converting to buyers, developers reading the numbers carefully before committing, and a persistent undersupply of three-bedroom units are shaping an active market, if not without its complications.

Gregory Kyroglou, Managing Director and Licensed Associate Real Estate Broker at Modern Spaces, has been working the Queens new development market from the Astoria office he launched for the firm. With roughly 14 new development projects under his belt across Astoria, Woodside, and Long Island City, his read on the market carries the weight of someone who has watched these neighborhoods change from the inside.

Manhattan Spillover Is Real

Much of the current narrative around Queens centers on buyers priced out of Manhattan, and Kyroglou confirms that dynamic is playing out. Buyers from the Upper West Side and Lower East Side are looking east rather than stretching for $2 million two-bedrooms. “We’re definitely getting that spillover of clients saying, ‘I don’t have $2 million for a two-bedroom. I can pick something up at a more reasonable price,” he notes.

But the more interesting buyer story may be the renter-to-owner conversion happening within the borough itself. As luxury rental buildings have opened across Long Island City and Astoria over the past several years, a cohort of residents has put down roots, grown comfortable with the neighborhood, and is now ready to buy.

Kyroglou says many of these buyers rented for three or four years before deciding to stay and raise families in the area. “You’re definitely getting a lot of people that are living in the areas currently,” he says. This local buyer base, combined with Manhattan spillover, is creating sustained demand that goes beyond opportunistic bargain hunting.

The profile skews younger, with one- and two-bedroom condos driving the bulk of transactions. That demand pattern is reflected directly in what developers are choosing to build, though Kyroglou sees a gap forming as a result.

The Three-Bedroom Gap

As the renter-to-buyer pipeline matures and households grow, one product type remains conspicuously scarce. “I think three bedrooms are something that developers should start considering,” Kyroglou says. “A lot of people want to stay in the areas. They have two kids, or they have one kid and want a home office. There’s just a lack of three bedrooms in the area.”

The reluctance is understandable from a developer’s standpoint. Three-bedroom units carry more risk, take longer to sell, and require a buyer pool with deeper pockets. But as the neighborhood matures and the renter-turned-buyer cohort starts to form families, demand is clearly building. For developers willing to take that calculated risk, there may be an opening that others are leaving on the table.

How Development Gets Built

The mechanics of launching a condo building are considerably more involved than most resale transactions. From the moment a developer makes contact, Kyroglou’s role extends well beyond marketing into shaping the product itself – working through floor plans, designs, layouts, appliance packages, and finishes.

Decisions about unit orientation, floor placement, and layout configuration all feed into the goal of maximizing price per square foot. Which unit faces south? Is a one-bedroom on the second floor more valuable than a two-bedroom on the third? Kyroglou works through these decisions with developers during pre-launch, before pricing is set or units are listed.

When a project isn’t moving as expected, the diagnosis is usually straightforward. “That means you’re too expensive,” Kyroglou says. The response is typically a price adjustment or an incentives package – such as covering a year of common charges – to bring buyers back to the table. A seven-unit building he launched in November sold out within two months, which he attributes to getting the pricing right from the start.

Developer Relationships That Work

Beyond pricing and product design, the quality of the broker-developer relationship often determines how well a project performs. Kyroglou says the key factor is a developer’s willingness to engage. “A developer just has to be open to conversation,” he says. “You’re going to butt heads a little bit, but if they’re willing to listen, you’ll have a good product.”

That openness matters because brokers in the new-development space often push back on design decisions that could hurt sellability. A kitchen layout, a unit configuration, a finish package – these details affect how quickly units move and at what price. A developer who treats broker input as an operational nuisance rather than market intelligence tends to leave money on the table.

Astoria’s Persistent Undervaluation

Asked whether any neighborhoods in Queens are currently undervalued, Kyroglou doesn’t hesitate. “I’ve said this for years: I believe Astoria is always undervalued. People take it for granted.” He points to Astoria Park, the neighborhood’s established character, strong transit connections to Manhattan, and waterfront development activity as factors that should command higher prices than the market currently reflects.

Compared to Brooklyn, Astoria remains underpriced, according to Kyroglou, though he believes the gap is narrowing. “There’s still a lot of time to get into the Astoria market and purchase something here,” he says. The waterfront, in particular, is attracting larger-scale development, a shift from the smaller boutique projects that have characterized much of the borough’s new construction in recent years.

Rates Still a Factor

Developers are still moving forward on projects when acquisition and construction costs allow for a viable margin. Kyroglou notes that, unlike individual homebuyers, who often make decisions based on emotional attachment, developers work from spreadsheets. “If the numbers make sense, they’re going to be active,” he says. “It could be a slow market, it could be a fast market. It just has to make sense.” Right now, those numbers are penciling out.

Interest rates remain the variable everyone is watching. Kyroglou acknowledges they continue to weigh on buyer decisions, but adds that a psychological adjustment is underway. “People are getting used to the rates now and understanding that this is where they are,” he says.

That recalibration matters. A market where buyers are waiting for rates to return to historic lows is a stalled market. A market where buyers adjust expectations and transact anyway is a functioning one. By that measure, Queens appears to be in the latter category.

For developers, brokers, and investors trying to understand where New York City’s residential market is heading, the outer boroughs continue to offer a more accessible entry point than Manhattan, with neighborhood fundamentals that are strengthening over time. The buyers are there, the developers are reading the numbers, and if the three-bedroom gap is any indication, there may still be product opportunities that the market has not fully addressed.

About the Expert: Gregory Kyroglou is the Managing Director and Licensed Associate Real Estate Broker at Modern Spaces, leading the firm’s Astoria office with approximately 14 new development projects completed across Astoria, Woodside, and Long Island City in Queens.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.