How New York’s housing market remains competitive despite soaring prices

BUFFALO, N.Y. — For years, upstate New York has been known as one of America's most affordable housing markets. But even with higher mortgage rates, competition for starter homes remains fiercer than ever.

Housing prices have climbed dramatically over the past several years, and while the market has started to stabilize, experts say a shortage of available homes continues to create competition.

According to Parcl Labs, home prices in the city of Buffalo have increased 104% since the COVID-19 pandemic, with Albany rising 78%, Rochester rising 93%, and Syracuse rising 98%. These housing numbers, combined with his own research, led University at Buffalo Real Estate Development Program Director Matthew Roland to say buying a home remains a challenge for many upstate New Yorkers.

“Gas prices and inflation, interest rates are still relatively high, compared to when some folks bought their house a couple years ago," said Roland. "It’s making life much, much more difficult.”

Roland said interest rates are only part of the story. He believes the biggest obstacle is that there are not enough homes to meet demand, especially for first-time buyers.  

“I think it’s a supply problem where we’re not building enough homes for the demand that’s there," said Roland. "There are other studies that show Buffalo particularly has some of the oldest housing stock in the country.”

That shortage Roland referred to has fueled competition for available homes. Buffalo Niagara Association of Realtors President Lori Adams said that while the market has become less frantic than it was a few years ago, buyers still need to be prepared when the right home hits the market.

“So what I’m seeing is the market has flattened, where things are we’re not seeing the sharp spikes that we saw after COVID," said Adams. "So things are getting to become a little more reasonable for the buyers that are out there.”

Even in a more balanced market, associate real estate broker Joel HusVar said preparation can make all the difference.

“Go through the process," said HusVar. "Understand what it takes to buy a house. And you’ll have so much confidence to move forward with the home of your dreams, and potentially save thousands of dollars from paying rent for the next 10 years.”

Adams agreed with Roland that long-term relief, however, may depend on something individual buyers can’t control.

“Getting more inventory on the market is what’s going to help the first-time homebuyer be able to find a place they can settle with their family at," said Adams.

Each housing expert came to the same conclusion that the biggest challenge won’t just be keeping homes affordable. It will be building enough of them so the next generation of buyers has a chance to call New York home.