Now is the Time to Invest in this New York Real Estate Market
The Syracuse real estate market is considered one of New York state’s up and coming housing markets. Many mid-sized markets – including the Syracuse real estate investment market – are poised for growth as some residents opt to move away from expensive coastal metros that led the way in the past.
During the pandemic, homeowners left the congestion of places like New York City and nearby Buffalo for more spacious and inexpensive cities. Smaller cities offered the room for social distancing, more affordable options, and a larger workspace for people working remotely.
Post-pandemic, amid rent hikes and skyrocketing interest rates, cities like Syracuse have provided a better housing option for homeowners, renters, and real estate investors looking for a lower cost of living.
The Syracuse housing market is very competitive, with sellers receiving multiple offers and homes selling 15 days after being listed – 52% faster than a year prior.
The average sale price of a home in Syracuse was $169,000 in August – a 5.9% increase YOY. Syracuse is still very much a seller’s market. Even though Syracuse’s median home price is lower than neighboring cities, nearly 74% of homes sold in August 2022 went for more than the asking price (while many markets were seeing declines).
A Glance at Syracuse’s Rental Market
Syracuse, New York is predominantly occupied by renters, with 55% of the households being renter-occupied. Homeowners only account for 45% of households in Syracuse.
This is likely because renting has been a more affordable option than buying due to the volatile real estate market and skyrocketing interest rates.
Rent in Syracuse is actually pretty affordable. The median rent for a one-bedroom apartment is $938 – a 14% increase YOY. The median rent for a two-bedroom apartment is $1,175 – a 24% increase YOY.
Over the past month, the average rent for a one-bedroom apartment decreased by 1%, while the average rent for a two-bedroom apartment decreased by 14%.
These stats are great news for real estate investors looking to invest in rental properties. It shows that there is a market for renters, SFR purchases are affordable, and there is opportunity to increase rental rates to manage cash flow.
Which Market Segments in Syracuse are the Best to Invest In?
Higher than normal foreclosures, an elevated unemployment rate, and lower than average home prices have made it hard for investors in Syracuse to start and develop new construction projects. But while that may not bode well for new construction in Syracuse, investors still have plenty of opportunities to invest in real estate.
In July 2021, Syracuse had 288 construction permits for single-family and multifamily housing. In July 2022, the city had just 43 permits – a decrease of 68% YOY, according to statistics from the US Census Bureau.
Comparatively, the state of New York saw a 65% decrease single-family and multifamily housing permits from July 2021 to July 2022. Nationally, construction permits declined 14.4% from August 2021 to August 2022.
Because of the high number of foreclosures, investors have a great opportunity in the fix and flip investing market with the option to turn those fix and flip investment properties into rentals via a long-term hold investment strategy. Syracuse has many “zombie foreclosures,” homes that stay vacant long after the homeowners give up the property. These kinds of properties are often great properties to flip using the BRRRR method.
An Investor’s Guide to Syracuse
There are a few negative trends in the Syracuse, NY housing market – a high number of foreclosures and an elevated unemployment rate – that, if corrected, could make the Syracuse housing market a hot spot for real estate investing.
In the meantime, the high foreclosure rates can work in the favor of real estate investors, opening up the opportunity to create a fix and flip portfolio in the area. Regardless of the market real estate investors are in or the investment strategy they prefer, every investor needs the right private lender to help you grow their rental property portfolio.
Lima One Capital has created a suite of loan products as diverse as our investors’ strategies. Whether you’re looking for fix and flip financing or need guidance on your next deal, let us help you close the deal.
As opposed to other hard money lenders in NY, Lima One Capital has the best suite of products for New York real estate investors, and we’re able to move quickly when you find the right opportunity. Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.