Why are Upstate NY Houses So Cheap?? (New York, Ithaca: sales, 2013)
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In general, it is because property taxes are too high. The greedy government always wants to get paid first, and in that the property values are stiffled. They don't realize that the property values would grow faster without the restraints.
Another reason could be because there is so much land to spread out. NYC and NJ are limited.
High taxes aside, I think most people like the property values here. There aren't the swings up and down as in other areas. And as for Rochester we do get some swings upward, but seem to retain values when other areas are declining.
Very good insight here. I figured a big reason is taxes. Demand probably isn't high because the taxes are eye watering. Do you think it's because of the winters there too?
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Originally Posted by ckhthankgod
Interesting, as those areas are actually on the higher end for Upstate NY in terms of housing prices, yet are still relatively affordable. Both of those areas are actually growing steadily in population too. In fact, Orange County, where Middletown is located, was and may still be one of the faster growing counties in the state and has never had a decline in population in its history. Tompkins County where Ithaca is located, hasn't seen a decline in population since 1910.
I found a few houses in Middletown that seem nice, but affordable. And the crime doesn't seem too bad. I am looking around "lower" Upstate because I wouldn't want to be too far away from the city.
Most of the houses are really old though. Which is ok because I like Victorian, but they would need a very thorough inspection.
No, I'm sorry but I don't believe you. There's no way color TV's have found their way up there yet...
Amazing State, Local and County Parks too.... Ithaca has some great waterfalls, then there's Watkins Glen, Lecthworth S.P., etc. Finger Lakes has some world class wines and wineries, produces some of the best white wines, particularly rieslings, IMO.
Middletown does have alot of shopping, but that's not really true upstate NY in my opinion, more like the left flank of the Hudson Valley.
So Middletown is pretty nice? The houses there are pretty affordable.
I'm not really trying to live out in the NY woods per say LOL. Just a nice suburb I guess. It's funny because I always have to remind my friends that NY is actually a pretty rural state. Most people think NYC all the time.
...An answer to the poster's question...can involve numerous reasons/answers. I'll pick one for this response. Property and home prices starting in the spring of 20', went up dramatically, BUT, mostly, in certain areas north of NYC/L.I. The covid "thing" saw folks looking for part time/full time "safe" places to live. Working from home helped accelerate the demand. Areas that saw this influx the most?...Hudson Valley, and lower half of the Catskills. The demand was at a lesser level elsewhere. One of my sons who did construction in the Catskills actually had these "pilgrims" offering his company a sizable bonus to put them at the head of the list, for new build/renovation, in these 2 areas. I could add other info to my answer..but suffice to say, this demand has slowed (for some obvious reasons.).
Compared to Schlong Island, Queens, Westchester, and the rest of the downstate counties, of course upstate seems cheaper. There are other reasons why. Don’t get all cocked and think about running upstate to live the good life.
...LOL..never heard that one before. Off topic..but whatever (take away my birthday)...when I would come home on leave from the military (back in the 80'-90's)..I would hit the bars where the female students from SUNY Binghamton would go. Now these were mostly NYC/L.I. girls. All I can say, lookin' back, as a serviceman/rural upstater from a farm...they were a tough group to impress...despite my best efforts to act "city sophisticated".
I think there are numerous reasons. High property taxes and going higher. Out of control state spending. One party government that never met a source of revenue they didn't like. Legalizing gambling casinos and pot, with the consequences be damned. Lack of employment opportunities. Businesses and people fleeing in droves. Houses are cheap for a reason, people are not fools, if the areas were more desirable then the prices would be higher. I look at it this way, when I go to a area I am not at all familiar with and I am looking for a place to dine, I check out which places are busy and which are not. The busy places must be better since the locals know a lot more than I do. The same goes for cheap houses in NYS.
I own in a major city currently. I am originally from NJ. I have been poking around on Zillow and I need to ask, why are decent houses so cheap in upstate NY? If possible, be real with me. Crime? Taxes? Drugs? Demand?COL?
Real estate in upstate New York appears cheap relative to large dynamic metro areas because:
1) the land is located far from economic activity, and
2) improvements to the land, such as buildings, decline in value every year and this decline is especially meaningful in regions such as upstate New York where the improvements were done many years ago.
Land tends to go up in value while the buildings on it decrease in value. What stands out about upstate New York is decades of weak economic activity has led to slower increases - or even decreases - in land value.
Violent crime in Tompkins County (Ithaca) and Orange County (Middletown) is dramatically lower than in New York City and slightly higher than in Nassau, Suffolk, and Westchester Counties. Property crime rates show less variance across these areas.
Property taxes are lower in upstate New York, reflecting the lower real estate values and lower public services.
Drugs, using opioid data a proxy, are a similar burden in Orange County, New York City, and Nassau, Suffolk, and Westchester counties. Tompkins County has a lower opioid burden.
Demand for housing is weak in upstate New York due to lousy population growth. Since 1990, New York City has added more population than the rest of the state combined, even though New York City has less than 1% of the state's land.
Cost of living, especially the cost of housing, is driven by the proximity of economic activity.
The OP seems to be comparing upstate NY housing prices to the housing prices in "a major city" (NYC?) and NJ. Don't both of those places also have high property taxes and the other qualities republicans complain about? Why would those things explain low home prices in upstate NY when they certainly don't seem to cause low prices in NYC?
I would think the #1 reason housing is "cheap" in some parts of NY state has more to do with incomes. Housing prices usually track with incomes and employment opportunities in the area. Vacation / second home communities would be an exception to that.
I think it would be interesting to see examples of the "cheap" houses OP is finding in NY. If Ithaca is cheap to you, that tells us your frame of reference is likely a very pricey location. To people from lower cost areas, Ithaca housing prices seem outrageous.
The OP seems to be comparing upstate NY housing prices to the housing prices in "a major city" (NYC?) and NJ. Don't both of those places also have high property taxes and the other qualities republicans complain about? Why would those things explain low home prices in upstate NY when they certainly don't seem to cause low prices in NYC?
I would think the #1 reason housing is "cheap" in some parts of NY state has more to do with incomes. Housing prices usually track with incomes and employment opportunities in the area. Vacation / second home communities would be an exception to that.
I think it would be interesting to see examples of the "cheap" houses OP is finding in NY. If Ithaca is cheap to you, that tells us your frame of reference is likely a very pricey location. To people from lower cost areas, Ithaca housing prices seem outrageous.
It’s deceiving. Like click bait.
The “cheap” homes are cheap for a reason.
Many times, you are actually just paying for the land because the actual structure(s) is a knockdown.
Foundation issues are very common due to the harsh winters.
Flooding is common and can happen ANYWHERE. Downstate and Schlong Island is a little more obvious, or predictable due to location. Most of the ding dong downstaters don’t realize just how much water is flowing around upstate. They think no ocean, and mountains, means no flooding. On top of that you have the spring thaw runoff. Snow melt runs downhill obviously, and for the uninformed, you have zero clue as to the biblical proportion of melted snow (aka:water) that flows from higher elevations.
So real estate listings won’t always include some of these facts. Like “not in flood zone”, yeah technically no, but the runoff from up the hill wiped out your yard and floods your basement for 2-3 months every spring.
So it’s stuff like that contributing to “cheap” home prices.
And then hey, sometimes it’s just a plain old sketchy skell infested neighborhood.
Local knowledge is key. A house may be floundering on the market because it’s on road that is well known to be a death trap in the winter. So yeah, just stuff to think deeper about when you see the low priced properties.
I can definitely see how someone would be surprised by those asking prices as these homes would obviously go for much much higher in a different location. Property taxes are indeed obscene in both cases, and Ithaca is known for having horrific property taxes. Both are pending so we don't know what price was actually accepted. Could be considerably higher than asking.
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Ithaca has some great waterfalls, then there's Watkins Glen, Lecthworth S.P., etc. Finger Lakes has some world class wines and wineries, produces some of the best white wines, particularly rieslings, IMO.
"Schlong Island" ??
