Not sure if you will be in town while it's dark, if so there are two easy drive-by attractions.
1) Washington Park on Madison Ave. near New Scotland Ave. & Lake Ave. They have a holiday light display thruout the park & the Lakehouse is decorated & filled with food & crafts. Proceeds benefit P.A.L.; the Police Athletic League for youth. I forget what the fee is - it's a flat rate per carload.
2) IMO, one of the best light displays anywhere is Apple Blossom Lane in the Town of Colonie off of Consaul Road. Just a few streets that form a loop; almost every house puts on an elaborate display. A few houses last year even strung their lights in the trees so it formed a canopy effect as you drove through. I haven't been yet this year, but it really does get better every year.
The architecture of the Capital District is pretty neat. The steps & facade of the State Capital; the churches nearby; & the state Education Bldg. all are impressive to see.
If you ever have a chance to come back in the fall or summer, be sure to take in Thatcher State Park, Saratoga Springs, Schoharie Valley & Cooperstown, Columbia County, the Hudson Valley & the Catskills. All are close enough to Albany & have quaint little towns.
I never realized how sleepy Albany is until I tried to answer your post!
BTW, I'm considering relocating to PA, TN, or VA. So far in PA, I'm looking at NEPA (at least that's how it's termed here in the forums). If you have any recommendations for towns with an attractive "main street" feel for retail business, please let me know! - thanks!

Piperspal