Usage of commas with "albeit"

Is it correct to place two commas in this sentence?

New York City plays a significant, albeit previously neglected, role in the urban narratives of [...].

Your use of commas there is parenthetical. So you could also write:

New York City plays a significant (albeit previously neglected) role in the urban narratives of [...].

Your use of commas is valid and frequently used.

Yes, that's fine.

A good rule of thumb when placing commas is to read the sentence through out loud, and actually say the word 'comma' in your head when you come to one. This gives you a sense of the pause the comma creates. If it sounds right, it is right!

It depends on whether you prefer an open or closed style of punctuation. It is fine to say

New York City plays a significant, albeit previously neglected, role in the urban narratives of [...].

but equally fine to say

New York City plays a significant albeit previously neglected role in the urban narratives of [...].

The judgment here must be whether the commas are needed to make the meaning clear. I think in this case they are not needed. But in a sentence with many clauses and antecedents and the like you may need the extra grouping that commas provide. Or you may not.