Buffalo housing market offers affordable options
Zillow has conducted a comprehensive analysis of the US housing market. The key factor demonstrating the recovery was the affordability of properties due to the likely reduction in interest rates. The housing market in Buffalo, which can take a leading position among large cities, attracted particular attention from analysts.
Buffalo remained in the shadow of American metropolises for a long time, but the situation has changed in the last year. Analysts have noted an increase in demand for local amenities. While property values in other US cities have risen to record levels, the situation in Buffalo remains fairly controlled. The local market offers the following conditions:
– the price of a home is approximately USD 248,500;
– a down payment of 5% is required for a mortgage;
– under these conditions, the mortgage payment is USD 1,792.
In addition to buying, the rental sector in Buffalo remains stable. The average rental costs USD 1,257 per month.
Another advantage of the city is its strong labour market. Buffalo leads the nation in the number of new jobs per new home. This is a crucial indicator of economic stability. It also indicates good prospects for increased demand in the housing sector. Therefore, job growth and an influx of people into the city support the housing market.
Comparison of Buffalo and other cities
Zillow analysts generally see changing trends in the US housing sector. Buffalo, Cincinnati and Columbus are considered the hottest markets in the country, having previously not experienced such success. One of the primary factors for homebuyers has been the availability of jobs. This is particularly important for young people who want to own their own home and pursue a career.
Like Buffalo, Cincinnati, and Columbus are seeing job growth. The number of homeowners is also rising, indicating an influx of population.
In 2023, the US saw a record increase in buying and renting property costs. The high cost and higher mortgage payments have led to a decline in transactions. Housing has become unaffordable for many potential buyers, who must postpone their purchases indefinitely. As a result, many people are moving to other regions, hoping to reduce property costs. The most attractive cities have proven to be those where prices are USD 7,500 lower than their previous residence. These opportunities are most common in the Great Lakes and Midwest markets.
According to Zillow, housing affordability in the country should improve in 2024. However, it’s too early to talk about a rapid market recovery.