So, what, exactly, does that mean? Several things, actually. It means that local market conditions are unique. For instance, while we in the Capital Region are experiencing growth in the housing market after a long dip, our market is relatively stable compared to the rest of the country. We also know that, every year, the market in the Capital Region experiences an uptick when the weather warms up. This remains true at a very micro level as well: we know that prices substantially increase when you cross the line from the City of Schenectady to the Town of Niskayuna. And, of course, buyers want to know about local culture – school districts, parks, restaurants, etc.
It’s a good idea to take stock of what is happening on a local level to remain competitive in real estate. Here are some items to watch:
Local Economy
Local job growth and the area’s business climate can impact supply and demand and have a huge impact on price. In the Capital Region, the presence of the New York State Capitol has kept our housing market relatively stable. In addition, we have been creating jobs and attracting businesses to our growing tech sector which has positively affected housing (especially multifamily thanks to the influx of young and temporary tech workers).
Demographic Trends
Demographic trends can differ substantially from market to market. While Florida is associated with retirees, for example, urban areas are attracting Millennials. The Albany area continues to experience high demand in the multifamily market fueled by both Millennials and retiring Boomers. This is contrary to the overall national trend where multifamily development is slowing down.
Local Elections
Local officials with the power to impose levies can have an effect on both property taxes and value. Investors and homeowners need to balance the effect of tax increases on their bottom line versus the funding of local services – roads, schools, emergency personnel – which impact property value.
