Year after year, New York has consistently been one of the best states to invest in real estate. The New York housing market forecast is extremely bright for many of its cities. New York City-Brooklyn, for example, is projected by a PwC report to be among the best cities for investing in New York real estate and US real estate overall.
However, there’s more to the New York real estate market than NYC. The Empire State is surprisingly an excellent spot for lucrative and even affordable real estate. Today, we’ll talk to you about the 7 best cities for investing in New York real estate.
Related: 10 Best Places to Invest in Real Estate in 2019
New York Real Estate Market: State-Level Data
Before we explore the 7 cities, let’s take a look at the data of the New York housing market 2019 as a whole. According to Mashvisor’s investment property calculator, which you can learn more about by clicking here, the New York real estate market data for 2019 is:
- Median Property Price: $542,219
- Price Per Square Foot: $403
- Traditional Rental Income: $2,342
- Traditional Cap Rate / Cash on Cash Return: 2%
- Price-to-Rent Ratio: 19
As you can see, buying investment properties in the New York housing market 2019 can be a profitable investment. While the state median property price is above the national average of about $230,000, the 7 cities to be mentioned are much more affordable.
Other real estate market trends include high profitability, as seen with the rental income and return on investment averages. The state’s price-to-rent ratio indicates that renting is generally more economically favorable compared to buying a rental property in New York. In other words, there is plenty of demand from tenants throughout the New York real estate market. All of these features remain consistent, or even better, in the 7 best cities in New York.
Related: The New York City Real Estate Market Forecast for 2019
The Best Cities in the New York Real Estate Market
1. Redwood
- Median Property Price: $121,450
- Price Per Square Foot: $122
- Traditional Rental Income: $1,590
- Traditional Cap Rate / Cash on Cash Return: 14%
- Price-to-Rent Ratio: 6
A small rural town, Redwood is one of the best places for buying a rental property in New York. It is also one of the most affordable cities in New York, with a median property price over four times less than the state median. Its cost of living is 21.5% lower than the US average. The town is also very lucrative with high rental income averages. Its return on investment, averaging a whopping 14%, is the highest in the entire New York real estate market.
2. High Falls
- Median Property Price: $95,000
- Price Per Square Foot: $72
- Traditional Rental Income: $2,020
- Traditional Cap Rate / Cash on Cash Return: 14%
- Price-to-Rent Ratio: 4
With an impressive median price of $95,000, High Falls has the most affordable real estate on this list. Like Redwood, High Falls is another small town with a suburban feel and lucrative investment opportunities. Its return on investment averages alone should incentivize New York real estate investors to invest in the area.
3. Niverville
- Median Property Price: $281,891
- Price Per Square Foot: $157
- Traditional Rental Income: $1,500
- Traditional Cap Rate / Cash on Cash Return: 13%
- Price-to-Rent Ratio: 16
Another top area for buying a house in the New York real estate market is the suburban town of Niverville. Niverville, like the others on this list, is among the most affordable cities in New York. The area’s outstanding ROI and improving economy (with a low unemployment rate of 3.2% and job growth at 1.1%) will definitely motivate New York real estate investors in 2019 to buy rental property here.
4. Palatine Bridge
- Median Property Price: $103,665
- Price Per Square Foot: $70
- Traditional Rental Income: $1,500
- Traditional Cap Rate / Cash on Cash Return: 12%
- Price-to-Rent Ratio: 6
Palatine Bridge is one of the more historic cities in the state, due to its pre-World War II architecture. This town is also a top-tier place for buying investment properties in the New York real estate market. This is due to its low property prices, high rental income, and sky-high ROI. Cost of living also boasts impressive numbers, with it being 19.3% less than the US average.
Related: Where Should You Invest in Multi Family Homes in New York State?
5. Waddington
- Median Property Price: $252,760
- Price Per Square Foot: $130
- Traditional Rental Income: $1,500
- Traditional Cap Rate / Cash on Cash Return: 11%
- Price-to-Rent Ratio: 14
Waddington is another town with a great New York housing market forecast for 2019. Like the other entries on the list, the historic town is very affordable and very lucrative. Its cost of living, which is 18.5% lower than the national level, is also very attractive to potential residents. These real estate market trends make Waddington a great location for buying a house in New York to rent out.
6. Oswegatchie
- Median Property Price: $182,250
- Price Per Square Foot: $65
- Traditional Rental Income: $1,400
- Traditional Cap Rate / Cash on Cash Return: 11%
- Price-to-Rent Ratio: 11
A larger town with a rural feel, Oswegatchie is another under-the-radar destination in the New York real estate market. Similar to Waddington, the town has a rich history and inexpensive and fruitful traditional investment opportunities.
7. Ulster Park
- Median Property Price: $231,450
- Price Per Square Foot: $158
- Traditional Rental Income: $3,654
- Traditional Cap Rate / Cash on Cash Return: 11%
- Price-to-Rent Ratio: 5
Last, but definitely not least, is Ulster Park. It’s the largest town on this list but it also has the highest rental income average with a stunning $3,654. The residential town is also home to many recreational sites. This gives this unappreciated area in the New York real estate market a nice edge over many other locations.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
All in all, the New York real estate market will remain one of the best in 2019. With the 7 cities mentioned in this blog, New York real estate investors will find excellent real estate opportunities.
For more data on where to invest in real estate in New York, click here to start your 14-day free trial with Mashvisor!
