New York City may be the largest real estate market in New York, and it is certainly the most expensive. However, there are several other major real estate markets in New York like Syracuse, and they are not subject to the same boom and bust as NYC real estate market. In this blog, our focus will be on the Syracuse real estate market trends and investment outlook for 2020.
Syracuse itself is home to around 150,000 people. That alone makes the Syracuse housing market the fifth largest in the state. However, the Syracuse housing market is much larger than this. More than six hundred thousand people live in the Syracuse metro area. In 2010, Forbes rated Syracuse 4th in “Top 10 Places to Raise a Family.”
“U.S. News” ranked Syracuse #54 among the best places to live based on quality of life and the job market. The list contained 125 metro areas in the United States. Syracuse has an unemployment rate of 5.5%. Syracuse has seen the job market increase by 0.5% over the last year. Future job growth over the next ten years is predicted to be 21.3%, which is lower than the US average of 33.5%. The median home price in Syracuse is much lower than in other U.S. metro areas.
Is Syracuse, New York a good place to invest in real estate? Syracuse has been one of the highest appreciating real estate markets in the nation for the latest quarter. In the last twelve months, Syracuse's real estate appreciation rate has been 0.53%, and in the latest quarter, it has been 2.88%. If it remains steady, the annualized appreciation rate would be 12.04% which would trigger a massive interest in the real estate investment opportunities in Syracuse.
Let’s learn more reasons why you may want to consider buying Syracuse real estate investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Syracuse (or any other market) and some of these variables are impossible to predict in advance.
Syracuse Real Estate Market Forecast 2020
What are the Syracuse real estate market predictions for 2020? Syracuse housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in New York. The latest real estate data from Zillow shows that the current median home value in Syracuse is $98,388.
Syracuse is currently a seller’s market – which means there are a lot of qualified buyers in the market place and not enough homes for sale in the market. The home prices have risen by 6.7% over the last year. Looking forward into the coming year, the Syracuse real estate market forecast is that home prices will continue to increase by 4.3%. Since 2015, the Syracuse home prices have increased from $83,000.
Here is the Syracuse, NY real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1% till Nov 2020.
The median list price per square foot in Syracuse is $64, which is lower than the Syracuse Metro average of $99. The median price of current listings in Syracuse is $84,900 and the median price of homes that have been sold is $92,700. The median rent price in Syracuse is $1,200, which is lower than the Syracuse Metro median of $1,275.
Zillow reports that 11.1% of the listings in Syracuse had a price cut in Nov 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median price per square foot in Syracuse in November was $64.
Syracuse Real Estate Market Trends
We shall now discuss some of the latest real estate market trends in the Syracuse such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. Syracuse is comfortable place to live, and the metro area continues to enjoy improvements. Convenience is a major perk of life in Syracuse. The center of the city proper is under 20 minutes from desirable suburbs, including places like Manlius, Baldwinsville and Liverpool.
Trulia has currently 536 resale and new homes for sale in Syracuse, NY including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. As per the real estate company called Neigborhoodscout.com, the median house price in Syracuse, NY is $95,208, which indicates that home prices in Syracuse are not only affordable but they are well below the national average for all cities and towns in the United States.
Single-family detached are the single most common housing type in Syracuse. One and two bedroom single-family detached homes are the most common housing units in Syracuse. Other types of housing that are prevalent in Syracuse include apartments, duplexes, homes converted to apartments and a few row houses. Syracuse housing market has more renters than house owners.
Currently, there are 245 single family homes for sale in Syracuse, NY on Zillow. Additionally, there are 76 single family homes for rent in Syracuse, NY. Under potential listings, there are about 4 Foreclosed and 167 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
In the past month, 130 homes have been sold in Syracuse, NY on Redfin.com. The median asking price is $110,000. Additionally, there were also 4 condos, 5 townhouses, and 109 multi-family units for sale in Syracuse last month. According to their Redfin, the Syracuse housing market is very competitive. The average sale price of a home in Syracuse was $119K last month, up 1.3% since last year. The average sale price per square foot in Syracuse is $77, down 4.3% since last year. A hot listing in Syracuse can sell for about 2% above list price and go pending in around 13 days.
Here is the latest Syracuse housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
Syracuse Housing Market Trends in Dec 2019
|Median List Price||$110,000|
|Avg. Sale / List||96.4%|
|Median List $/Sq Ft||$72|
|Avg. Number of Offers||–|
|Median Sale Price||$119,000|
|Avg. Down Payment-||–|
|Median Sale $/Sq Ft||$77|
|Number of Homes Sold||130|
There are currently 789 homes for sale in Syracuse, NY on Realtor.com. The newly listed homes for sale are 35. The asking price of single family homes can start from $1,000 and can go up to $600,000 for a luxury property located in DeWitt neighborhood in the city of Syracuse, NY. The median home price is DeWitt, Syracuse is $189,000 and homes are selling for $107/Sq Ft. There are currently 221 rental properties in Syracuse, NY and their rent prices range from $100 to $2,800 per month.
There are 11 new construction homes for sale in Syracuse within a price range of $260,000 to $514,000. The cheapest new construction home can be bought in Onondaga Hill neighborhood in the city of Syracuse, NY. Onondaga is a popular neighborhood for buyers who can afford to buy a home in the median price range of $240K. According to Realtor.com, in November 2019, the Syracuse housing market was a seller’s market, which means there were more qualified buyers than there were active homes for sale.
In other words, the demand for housing outweighed the supply. Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In November 2019, the median list price of homes in Syracuse, NY was $119.9K, trending up 6.2% year-over-year. The median listing price per square foot was $77. The median sale price was $124.9K. On average, homes in Syracuse, NY sell after 82 days on the market. The trend for median days on market in Syracuse, NY has gone down since last month, and slightly down since last year.
The median list price in Syracuse, NY is $109,000 on Movoto.com. The median list price in Syracuse was less than 1% change from December to January. Syracuse's home resale inventories is 228, which decreased 6 percent since December 2019. The median list price per square foot in Syracuse is $73.
As you can see in the graph, the median price per sq ft rose to its peak value in June 2019, when it was $87, and then there was a continuous drop in prices. In December 2019 it was $74. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
Syracuse is a moderately walkable city in Onondaga County. Some of the most popular neighborhoods in Syracuse are Brighton, Eastwood, Washington Square, Southwest, Strathmore, North Valley, Northside, Tipperary Hill, DeWitt, Solvay, Valley, Westvale, Eastwood, Armory Square, Onondaga Hill, Franklin Square, Meadowbrook, East Syracuse and Sedgwick.
Brighton is one of the 26 official neighborhoods in Syracuse, New York. It is one of most affordable neighborhoods of Syracuse. The crime rate in Brighton is considered to be on higher side but it is declining every year. The housing in Brighton consists mostly of single family homes. It also has apartment complexes on the east side for those seeking to rent.
There are currently 61 homes for sale in Brighton, Syracuse, NY on Trulia.
- Median Home Value in Brighton: $55,000
- Median Rent in Brighton: $800
- Median Income in Brighton: $25,000
Strathmore is a suburb located east of Syracuse. Strathmore is bounded on the north by Bellevue Avenue, on the west by Onondaga Avenue, on the south by Glenwood Avenue, and on the east by South Geddes Street. Strathmore is predominantly residential with apartment communities located north and south of the residential areas.
There are currently 21 homes for sale in Strathmore, Syracuse, NY on Trulia.
- Median Home Value in Strathmore: $125,000
- Median Rent in Strathmore: $1,100
- Median Income in Strathmore: $23,000
Washington Square encompasses what used to be the old Village of Salina which has a concentration of two, three, and four family structures, and larger apartments surrounded by single-family homes. The neighborhood contains mixed-use buildings along the North Salina Street corridor. The Washington Square neighborhood consists of a mix of residential, commercial and industrial sectors.
There are currently 61 homes for sale in Washington Square, Syracuse, NY on Trulia.
- Median Home Value in Washington Square: $67,000
- Median Rent in Washington Square: $700
- Median Income in Washington Square: $29,000
If you are looking to invest in the Syracuse real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Syracuse investment real estate and you should be able flip it for a lump sum profit. The neighborhoods in Syracuse must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls.
Syracuse, NY Foreclosures And Bank Owned Homes Statistics
In 2019, Syracuse had about 16.5 percent vacant foreclosures. You can buy foreclosed homes in Syracuse up to 60% below market value. These are bank owned foreclosures, pre-foreclosures, foreclosure auctions and government foreclosure homes in Syracuse, NY. As per the Syracuse foreclosure data by Zillow, in Syracuse 1.2 homes are foreclosed (per 10,000).
This is the same as the national value of 1.2. The percent of delinquent mortgages in Syracuse is 1.9%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Syracuse homeowners underwater on their mortgage is 16.8%.
|Total No. of Foreclosures in Syracuse||484 (RealtyTrac)|
|Homes for Sale in Syracuse||422|
|Median List Price||$119,900 (4% drop vs Oct 2018)|
There are currently 484 properties in Syracuse, NY that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 422. In November 2019, the number of properties that received a foreclosure filing in Syracuse, NY was 36% higher than the previous month and 2% higher than the same time last year.
Is Syracuse, NY a Good Place For Real Estate Investment?
Investing in good real estate markets is touted as a great way to become wealthy. Is Syracuse a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying a property in Syracuse is good investment? If you want to find out whether Syracuse real estate is a good investment or not, you need to drill deeper into local trends. The Syracuse real estate trends will tell what the market holds for the year 2020. We have already discussed the latest Syracuse housing market forecast for 2020.
Purchasing an investment property in Syracuse real estate is a little different from shopping for your car or primary residence. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Syracuse real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Syracuse that you might move into or sell at retirement in the future!
Either way, knowing your profit potential and purpose is the first thing to consider. When looking for the best real estate investments in Syracuse you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential. Let’s now discuss state of the Syracuse real estate market, which can help investors who are keen to buy an investment property in this city.
The Types of Properties Available
The Syracuse real estate market contains many more apartments than you’d expect in a city this size thanks to the demand from Syracuse University. Furthermore, students are almost immune to rental rates. This is why there has been a surge in luxury apartment building in the Syracuse real estate market. These upscale apartments rent for up to three times the local average. (Think 1500 to 1800 dollars a month instead of the standard 600/month for an efficiency or single bedroom apartment.)
Note that most of the apartment buildings and single family homes in the Syracuse area were built before World War 2. This increases the ongoing maintenance costs unless you’re buying one of the rare new units. On the other hand, it creates a much larger supply of properties in desperate need of rehab. You can buy it cheap, fix it up and flip it or rent it out.
Syracuse Property Prices and Rental Rates
Syracuse is home to Syracuse University and Le Moyne College. This contributes to the high proportion of residents in the Syracuse real estate market that rent; more than 60 percent do though property prices are relatively low. The average home in the Syracuse housing market costs less than a hundred thousand dollars. Yet the median rental rate for a Syracuse real estate investment property is more than eight hundred dollars a month or ten thousand dollars a year.
That’s lower than the state’s gross rent of 1300 dollars a month, but it is high given that you can buy a two bedroom home or condo for 80,000 dollars. A four bedroom home in the Syracuse real estate market rents out for about 1200 dollars a month. The median home price is hovers around ninety thousand dollars. The Syracuse housing market is seeing steady appreciation.
Rents for one and two bedroom apartments increased 10 percent in 2019. For comparison, national rents rose just under two percent. This is occurring while the value of the Syracuse real estate investment property rises several percent a year. The influx of new luxury construction pulls up property values of all surrounding areas, even if it is a 1940 two bedroom home.
The Tax Burden
The valuations of Syracuse real estate investment properties are on the rise thanks to redevelopment in downtown. The city has also increased property taxes for the 2020 tax year. Yet tax assessments are often years behind, causing some to pay outsized tax bills on depreciated homes, while other valuable properties are under-taxed. If you buy a property in the Syracuse real estate market, understand that you need to have the property assessed and expect a stiffer tax bill the next year.
The standard rate is 2.4 percent of the home’s value, and the assessed value is obviously what you just paid for it. Ironically, examples like the 2500 dollar tax bill on a 50,000 dollar home assessed at 65,000 dollars for 20 years contributes to many people being unable to afford to buy a home in the Syracuse housing market.
The Legal Climate
New York City is one of the most oppressive rental markets in the United States if you are a property owner. The rest of the state is renter-friendly but not as bad. The state of New York passed rent control for the entire state in 2019. The same law makes it much harder to evict someone from a Syracuse real estate investment property. For example, they get 14 days instead of 72 hours if evicted, even if it is for nonpayment of rent.
You can’t refuse to rent to someone with a history of evictions, either. However, these issues are true for the entire state. Syracuse is just slightly better, such as only now forming a tenants union NYC has had for years. This is one reason we’d advocate for Syracuse real estate investment over buying New York City properties.
Quality of Life in Syracuse
Quality of life metrics cover a variety of factors. Syracuse ranks high on “diversity”, though that doesn’t really impact quality of life unless you can’t live without diverse, authentic restaurants everywhere. Syracuse has an A+ night life in part due to the large student population. The city’s public schools rank a C, though there are worse school districts in New York. Housing is a C- while crime was a C, but that’s actually better than average for New York state. This is why Syracuse received a B on overall quality of life.
Another issue that factors into the equation is the job market. Lots of cities have a great quality of life but almost no one can afford to live there. The Syracuse housing market ranked a 6.3 out of 10 for its job market. That’s better than rural and much of upstate New York. And it is why there is a slow trickle of people moving in to replace those who leave. That’s why the Syracuse real estate market has a net migration of 5 or a stable population. This is in sharp contrast to the depopulation seen in most Rust Belt cities. It also means Syracuse real estate investment properties will hold their value for the foreseeable future if they don’t appreciate.
Investing in Syracuse Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Syracuse, New York but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. We’d say that the Syracuse market offers cheaper property with a higher return on the investment and less hostile legal climate. It is one of the better choices if you want to invest in New York state. A good cash flow from Syracuse investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Syracuse real estate investment opportunity would be a key to your success. If you invest wisely in the Syracuse real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the Syracuse real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the Syracuse housing market at the time you intend to purchase.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Syracuse real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Good Markets To Invest in Real Estate in 2020
The other real estate market which looks good for investment in 2020 is Albany, NY. Albany is a steadily appreciating real estate market. While it isn’t as famous or hot as NYC, it offers an affordable entry point and massive pool of perpetual renters. Though it may not be somewhere you want to live, many locals are choosing to stay and make their homes here. And that will continue to drive demand for Albany real estate investment properties as long as they are priced right.
Another good market to invest in real estate is Galveston in Texas. Galveston is more than the resort town for south Texas. It is a vibrant coastal city with multiple universities and an active port to provide steady regional employment in addition to the massive annual flood of tourists. The Galveston housing market contains two massive populations of renters. One is the large contingent of tourists who arrive in droves in Spring Break continue coming through Labor Day. Roughly 7.5 million people visited the city in 2019. This is one reason why the Galveston real estate market was ranked among the best in the country on short term rentals to tourists in 2016.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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