If you’re reading this, then the chances are that you’re at least a little interested in property investment in Rochester, NY – and if that’s the case, then it’s a smart thing to be considering. But whenever you enter the market, whether it’s purchasing your first rental house, or to expand your portfolio, it’s essential that you know what you’re getting into. There may be a lot of potential profits to be made in this market, but you have to know the key stats and information about any area before putting your money down.
Interest in property investment in Rochester, NY, has been growing for sometime now and for good reason. In this article we’ll explain some of the key facts and figures that make this area such an excellent option for investment at this time. It’s in this area that we do a lot of our work at Torres Turn Key, assisting with all different aspects of property management – so we know the area well.
Turning a profit and making a good return on your investments is absolutely crucial. It’s the main reason that most of us get involved in real estate and it can be very rewarding and lucrative. That being said, those interested in property investment in Rochester, NY should be very excited by how the market looks at the moment. Aside from its proximity to New York City, the whole region is performing well.
Perhaps more important than any other stat is the time a home spends on the market, and here it’s only 53 days (as an average). This tells you that the interest in real estate is strong and investment in the market is likely to do well.
Some other key facts and figures include:
- The number of homes for sale has fallen, while the sales price has risen – 11% and 14% respectively. This means that the market currently has more potential buyers and renters and fewer homes – great for ROI.
- The average listed price in the area is just under $150k, but the average sale price is closer to $195k (and remember, this is just a median value).
- The city has seen around 15% growth in home values over the last year, alone.
As you can see, the real estate market here is robust and performing well.
Affordability is an interesting factor when it comes to investing in real estate, especially if this is in order to rent rather than flip a house. Obviously you want housing to be affordable so that you can seriously consider property investment. In Rochester, NY, this is exactly the case. Various reports have scored the city a 3/10, which puts it on the affordable end of the scale.
This is great for buying the property, but doesn’t this make it more likely that your prospective tenants will purchase their own home rather than rent from you? Usually this is what we might expect, but the rental market here performs extremely well despite the relative affordability of homes. As you will see, there are a few reasons for this – but as it stands, just think of it as being the best of both worlds.
It’s a Renter’s Dream
The homes in Rochester are fantastic, which is one of the many reasons so many people chose to move here from the big metropolitan cities. As we saw in the previous section, property investment in Rochester, NY is such a smart move because, although it’s not an unaffordable city to purchase property, it’s still cheaper for would-be homeowners to rent.
- Nearly two thirds of dwellings in the city are rented.
- Average rental on a three-bed family home is around $1,400 a month.
- Expensive areas to rent can bring in sums of around $1,800-1,900.
- There have been increases in rental values compared with five years ago.
Prices Over Time
Right now, property investment in Rochester, NY could be a wise move – the city is affordable, even if house prices have increased year on year (51.1% over the last five years). For those who invest now, they’ll have a property that, if trends are to be relied upon, might increase further in the future. Of course, you can never predict that with certainty, but as of April 22, the HPI for the city was around 206 (compared with a year 2000 baseline of 100).
Other Factors to Consider
Population growth is a key factor to consider, because this can have a big impact on the value of housing stock, both when purchasing and when renting. There has been fairly limited population growth in Rochester over the past decade, but there are predictions that it will double in the next 50 years.
Quality of life plays a big role in why this is – the quality of life afforded to residents of cities like Rochester makes it a very desirable place to live. For example, it’s 11% cheaper (in terms of cost of living) in Rochester than the national average – no wonder people keep leaving NYC to come here!
Property investment in Rochester, NY is a great thing you can get involved with, especially if you’ve done your homework and spoken to local experts like we have in our team at Torres Turn Key. There are a huge number of reasons people choose to invest in this great city, and local knowledge can help make that decision an even stronger one. To make your journey through the trials of property investment that much easier, why not get in touch with us to see exactly what we can do to help?
There are a number of aspects of property management that can be difficult without the assistance of those in the know, so give us a call and see how we can help you make the most from your investment.