New York Real Estate Market Forecast 2020

New York State is one of the hottest housing markets in the US. But what does the New York real estate market have in store for investors in 2020?

New York Real Estate Trends

Buying a New York investment property can be a very good move as long as you keep tabs on trends so you know what to expect. After taking a look at the most recent reports and expert housing market predictions for the state, we’re going to give you the New York real estate market forecast for 2020.

A quick snapshot: Although experts do expect a mild recession to hit the US in the near future, the country’s economic expansion which started in 2009 will continue this year and the next. So there are no threats of a big housing market bubble or a housing market crash. New York’s economy ranks third in the nation (following California and Texas) with a GDP of $1,720 trillion in 2019. Expected to only grow in 2020, positive trends are on the horizon for the New York real estate market.

New York House Prices Are Increasing

According to this New York real estate market report, home prices are moving up. The median sales price increased by 7.1 percent to $299,950 from July 2018 to July 2019. Every month this year has hit a higher median sales price than what it was last year. This has been an apparent trend for years now. The annual increase in sales price was 5.6 percent in 2017, 8.2 percent in 2018, and 5.7 percent in 2019.

According to Zillow, the median home value for New York real estate is currently $303,600. This is an 8.1 percent increase since last year. The data also shows a forecasted increase in market value by 4.1%. Based on these stats, we can say that the New York housing market predictions for 2020 point to a higher sales price.

Affordability Is Dropping

The housing affordability index dropped to 121 in 2019. The market experienced a 6.5 percent drop in 2017, a 12.4 percent drop in 2018, and a 4.7 percent drop in 2019. The lower the number, the less housing is affordable in that region. While affordability in the market is dropping, the New York housing market forecast for 2020 doesn’t include an affordability drop as big as the one seen in 2018.

Housing Inventory Is Tightening

Taking a look at the average number of homes for sale in the New York real estate market over the past 12 months, we’re seeing a consistent annual drop. Inventory levels throughout the year so far have been fluctuating slightly. One month up and the next down. Over the last three years, the largest drop was -7.9 percent in 2017 when the New York housing market was red hot. But seeing as there was only a 2.4 percent drop in 2018, and a 2.6 percent drop in 2019, the New York real estate market forecast for 2020 won’t include any major drops in the inventory of homes for sale in New York.

It Might Still Be a Seller’s Market

After learning that home prices are up and inventory is down, it’s natural for us to assume that New York is currently a seller’s market– and it is. But that doesn’t mean that you shouldn’t invest in New York real estate. In July, months of supply in the New York real estate market was 6.6- which is indicative of a buyer’s market. The number of new listings has gone up 1 percent since 2018, which is good considering new listings were down the two years prior. If things stay on the trends we’re seeing right now, the New York real estate market forecast could include favorable conditions for buyers in 2020.

A Strong Rental Market Forecasted Across the State

Mashvisor’s analysis of the New York real estate market tells us that, on average, rental properties perform quite well and generate a strong return. Take a quick look at our numbers:

Median Property Price: $538,566
Price per Square Foot: $307
Price to Rent Ratio: 19
Average Days on Market: 121
Monthly Traditional Rental Income: $2,327
Traditional Cash on Cash Return: 1.6%
Monthly Airbnb Rental Income: $3,317
Airbnb Cash on Cash Return: 4.2%
Airbnb Occupancy Rate: 54%

When looking at these numbers, keep in mind that they’re statewide projections of rental property performance. Local real estate markets will have their own trends and witness different levels of performance for rental properties. If you want to start searching for real estate in the New York real estate market, use our Property Finder. You can choose the city/cities to search in, set a preferred rental strategy, and filter out search results based on budget, property type, and the number of bedrooms and bathrooms. Learn more about the Property Finder here.

Where to Invest in the New York Housing Market 2020

Using Mashvisor’s investment property calculator, we’ve got all the data you need to make a confident investment in the New York real estate market. Based on price trends, important ratios, and key return on investment metrics, the following cities will make for the best real estate investments in New York 2020.

1) Windham, Greene County

Median Property Price: $456,241
Price per Square Foot: $219
Price to Rent Ratio: 6
Average Days on Market: 145
Monthly Traditional Rental Income: $6,822
Traditional Cash on Cash Return: 11.0%

2) Hunter, Greene County

Median Property Price: $370,648
Price per Square Foot: $211
Price to Rent Ratio: 7
Average Days on Market: 109
Monthly Traditional Rental Income: $4,661
Traditional Cash on Cash Return: 7.3%

3) Wilton, Saratoga County

Median Property Price: $418,733
Price per Square Foot: $190
Price to Rent Ratio: 10
Average Days on Market: 132
Monthly Traditional Rental Income: $3,496
Traditional Cash on Cash Return: 5.9%

4) Hampton Bays, Suffolk County

Median Property Price: $882,246
Price per Square Foot: $500
Price to Rent Ratio: 12
Average Days on Market: 164
Monthly Traditional Rental Income: $5,984
Traditional Cash on Cash Return: 5.4%

5) Malone, Franklin County

Median Property Price: $161,162
Price per Square Foot: $90
Price to Rent Ratio: 10
Average Days on Market: 174
Monthly Traditional Rental Income: $1,339
Traditional Cash on Cash Return: 5.4%

6) Riverhead, Suffolk County

Median Property Price: $487,725
Price per Square Foot: $255
Price to Rent Ratio: 10
Average Days on Market: 135
Monthly Traditional Rental Income: $4,061
Traditional Cash on Cash Return: 5.2%

To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

Note: Although our analytics do include Airbnb data, we didn’t provide any for the New York real estate market forecast seeing as there are different short-term rental regulations, depending on the county you’re in. If Airbnb is legal in a New York housing market you’re interested in, and you want data, click here to sign up for Mashvisor and get access.

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The New York Real Estate Market Forecast 2020