Top 5 Markets for New York Real Estate Investors in 2024 (2024)

Real Estate investors looking for returns from both cash flow and appreciation continue to love New York for investment properties. The Empire State is loved by real estate investors due to many factors including a strong diversified economy, booming population and natural beauty in the north that drives year-round visitors! Easy Street Capital is proud to be a leading provider of rental properties for real estate investors looking for loans to build rental portfolios in New York!

Types of Investment Properties

New York has lots of diverse markets and types of rental property loans to choose from in. Investment property loans can be a useful tool for real estate investors, particularly when purchasing turnkey rental properties. The term “turnkey” refers to properties that are already rental-ready and require no further renovations. Move-in ready single-family and multi-unit homes, as well as fully furnished short-term rentals, can generate both cash flow and price appreciation. Long-term DSCR loans are generally fixed rate for thirty years, allowing investors to lock in a fixed interest rate while rents and appreciation continue to increase over time. This can be a powerful way to steadily build wealth through real estate investing.

EasyRent

Where To Invest In Real Estate In New York

New York, often referred to as the “Empire State,” offers a diverse range of real estate investment opportunities. New York City, the state’s iconic metropolis, presents a dynamic market with various investment strategies to explore. Rochester, known for its strong cultural heritage, is a growing city in the heart of the state. Albany, the state capital, combines historical charm with modern development, creating a unique real estate landscape. Syracuse, a vibrant city between Rochester and Albany, presents an appealing market for investors seeking diverse rental opportunities. Lastly, Catskill is known for its scenic beauty and offers an ideal location for cabins with nice views. The vast array of options in New York state caters to different investor preferences and showcases the varied nature of real estate opportunities available.

New York City

New York City, the bustling metropolis and cultural hub of the United States, offers a diverse range of real estate investment opportunities. With a thriving economy and a multitude of industries such as finance, technology, and entertainment, the city provides a strong foundation for long-term rental properties. New York City’s population is around 8.3 million and continues to grow, reflecting a sustained demand for rental housing.

As a major tourist destination, New York City attracts millions of visitors each year. The city is home to iconic landmarks like Times Square, Central Park, and the Statue of Liberty, drawing in tourists from around the globe. This creates a robust market for short-term rentals and vacation properties, especially in popular neighborhoods such as Manhattan and Brooklyn. Additionally, New York City’s vibrant arts and entertainment scene, diverse culinary offerings, and countless cultural events further contribute to its allure.

Another significant aspect of New York City is its role as a global business and educational center. With prestigious universities, like NYU, renowned medical centers, and multinational corporations, the city welcomes a constant influx of students, professionals, and researchers. This presents an opportunity for medium-term rentals, investments, catering to the needs of those seeking temporary accommodation for academic or business purposes.

Investors in New York City can take advantage of the city’s steady rental market. According to the Zillow Observed Rent Index April 2024, the average market rent in New York City is $3,500 per month. The market rent in this city is up 67% than the national median, despite general market slowdown. Overall, New York City is a great place for investors to expand their portfolios and make high returns.

Rochester

Rochester is a thriving city located in the western region of the state. With a population of over 200,000, Rochester offers a diverse economy with notable contributions from industries such as healthcare, education, and technology. Fortune 500 companies located in this city include Northwestern Mutual and IBM.

Cultural attractions abound in Rochester, with a vibrant arts scene showcased through museums, galleries, and theaters. The George Eastman Museum, Memorial Art Gallery, and Rochester Broadway Theatre League are just a few examples of the city’s cultural offerings. Additionally, Rochester’s downtown area boasts a lively atmosphere, with a wide array of shops, restaurants, and entertainment venues that appeal to both residents and visitors.

Real estate investors in Rochester have witnessed impressive returns on their investments in recent years. According to data from RocketHomes, the median sales price in Rochester has shown significant appreciation over a short period. For instance, the median sales price just last year was $182,400, and as of March 2024, it had increased to $200,000, representing a steady 8% appreciation.

Albany

Albany serves as the state’s capital and is nestled in a scenic location alongside the Hudson River. The city boasts a diverse range of industries, including healthcare, government, and technology, contributing to a stable job market and making it an appealing destination for long-term rental properties. With a population growth of 100,000, this city exhibits a steady demand for rental properties.

Albany also attracts visitors as a notable tourist destination, offering attractions such as the New York State Capitol, the Empire State Plaza, and the picturesque Hudson River. The city’s historic districts, featuring charming architecture and cultural landmarks, enhance its allure. Throughout the year, Albany hosts various events, including the Tulip Festival and the Capital Pride Parade, which draw tourists and generate demand for short-term rentals and vacation homes.

Real estate investors can find lucrative investment opportunities in Albany, with a median home sales price of $205,500 as of February 2024, according to Redfin. In addition, the average rent in Albany for all property types was $1,500 a month as of April 2024, according to Zillow. This makes it an attractive market for rental properties, with potentially high cash-on-cash returns.

Furthermore, Albany benefits from its proximity to prestigious educational institutions and government entities. With prominent universities and state agencies in the area, the city presents opportunities for medium-term rentals. Visiting academics, government officials, and professionals seeking temporary accommodations are potential tenants for medium-term stays in Albany.

Syracuse

Syracuse, located in central New York, is a vibrant market with a population of over 148,000 residents. The city’s economy is diverse, with healthcare, education, and government sectors playing significant roles. Syracuse University, a prestigious educational institution with a student enrollment of over 22,000, contributes to the city’s rental demand, particularly in the student housing market. Real estate investors specializing in niche strategies like student housing can find attractive opportunities in Syracuse.

Syracuse University’s presence creates a consistent demand for rental properties near campus, offering potential for high occupancy rates and strong rental income. Investors who strategically select properties in close proximity to the university can capitalize on the student population and enjoy the benefits of this specialized market.

Furthermore, this city presents an appealing opportunity for real estate investors due to its affordable rental market. As of April 2024, the average monthly rent for all property types in Syracuse was $1,400, as reported by Zillow. This favorable rental climate creates the potential for attractive cash-on-cash returns. Investors can capitalize on this by leveraging low-down payment options and utilizing rental loans, enabling them to generate robust cash flow and build sustainable long-term wealth in the real estate industry.

Catskill

Catskill is located in the beautiful Catskill Mountains, offers a picturesque setting with a range of outdoor activities and natural attractions. The town is known for its scenic beauty, including breathtaking mountains, hiking trails, and picturesque waterfalls. Visitors can explore popular spots like Kaaterskill Falls, North-South Lake, and the Catskill Scenic Trail.

The town’s natural beauty and proximity to outdoor activities make it an appealing destination for tourists seeking a peaceful retreat or outdoor adventure. However, investors should be mindful of the seasonal nature of the market, with higher occupancy during the warmer months and potential lower demand during the winter.

AirDNA, a leading data provider for the short-term rental industry, gives Catskill a market grade of “A+” with average daily rates of $360.90, and monthly projected revenues of just over $4,100. Investors can capitalize on high earning potential, with the potential to generate an impressive annual income of $51,900. Furthermore, Catskill’s exceptional rating of 99/100 for “investability” signals a golden opportunity for investors to thrive in this lucrative market.

Ready to Get Started?

Ready to invest in real estate in New York? Easy Street Capital is a top lender for loans for rental properties in New York!

Request a Term Sheet

Talk to a Loan Specialist

About the Author