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Upstate New York housing market may be balancing out

  • / Updated:
  • Staff Report 

The pandemic has caused major issues for the housing market since it started, with some home prices jumping more than 30% in Upstate New York.

As for national averages, home prices were seen to have risen by around 40%. Now, the end of the massive price increases may be near.

According to the Times Union, economists with the Federal Reserve had predicted that house prices will cool. For Upstate New York, that means while prices may cool off, mortgage rates will still rise and affordability remains low.

Since the pandemic began, a report released for the Federal Reserve’s second district shows home prices in Upstate New York jumped by 30%. This was a bit lower than the national average.

Remote work is partly to blame, as residents in major cities like New York chose to relocate to more rural locations, like Upstate. The Upstate region offered cheaper housing and a lower cost of living compared to major cities.

The stimulus cash and low mortgage rates also created a massive boom in the market. Many city residents wanted to escape the spread of COVID-19 and rural living became attractive. Once people were able to work remotely and live wherever they wanted, they were able to spread north from the city.

As demand for housing increased, supply stayed low due to the pandemic not allowing new homes to be built. This was both due to the virus and low supplies for building homes. The housing market in Upstate New York has now been cut in half from the shift that began years ago.

Affordability is one of the biggest concerns now for both renters and potential homeowners.

Categories: New York StateNews