Upstate New York has become an increasingly popular destination for investors in recent years. With its natural beauty, affordability, and proximity to major cities like New York City and Boston, Upstate New York offers attractive opportunities across different asset classes. This article explores the best places to invest in Upstate New York based on market data and growth trends. We identify the top 4 cities that provide high return on investment – focusing on residential real estate, commercial real estate, farmland, and small businesses. Key factors we assess include population and job growth, infrastructure development, tax incentives, and recent price appreciation of assets.
Rochester is a top city for residential real estate investment in Upstate New York
Rochester is an excellent option for investing in residential real estate in Upstate New York. As New York’s third largest city, Rochester provides relatively affordable housing prices combined with steady population and job growth. The city’s medical and education sectors are expanding rapidly, bringing new residents and driving demand for housing. Median home prices in Rochester are around $150,000, far below prices in NYC but with strong 7% annual appreciation over the past 5 years. New infrastructure projects like the Inner Loop reconstruction are also making the city more appealing for families and millennials. Key neighborhoods to target include Park Avenue, South Wedge, and NeighborGoods areas which are undergoing extensive revitalization.
Albany and Troy provide opportunities in commercial real estate investment
For commercial real estate investment, Albany and Troy rise to the top of the list for Upstate New York. As the state capital, Albany offers unique advantages including a stable workforce anchored by 70,000+ government employees. The city has experienced a surge of tech companies and startups, with commercial property values rising over 10% annually as demand outpaces supply. Neighboring Troy is also benefiting from the growing Tech Valley economy, with Rensselaer Polytechnic Institute and other schools attracting companies to the area. Mixed-use retail, creative office spaces, and multi-family apartments are providing the highest returns on investment currently in these cities.
Farmland values in Central New York are appreciating as agriculture tech expands
Upstate New York has a long agricultural history, but farmland values are rising fast lately due to growth of precision agriculture and agriculture tech in Central New York. Cornell University and Clarkson University have developed major agriculture tech research hubs, attracting companies to expand in the region. This is driving increased productivity and profitability of local farms. Counties like Lewis, Jefferson, Oswego and Madison are seeing farmland values increase by 15%+ over the past 3 years. Investing in Central New York farmland early allows capturing significant upside potential as the agriculture industry continues rapid technology-driven growth.
Small business opportunities in tourism exist across Upstate New York
Finally, small business opportunities remain strong across Upstate New York’s tourism sector. Popular destinations like the Finger Lakes, Adirondacks, Catskills, and Hudson Valley attract over $100 billion in tourism spending each year to New York. This creates small business opportunities in lodging, restaurants, entertainment, transportation, recreation, and artisanal products. Regional tourism growth is outpacing statewide figures recently. By owning small tourism businesses in top destinations across Upstate New York, investors can generate high cash flow while also benefiting from captial appreciation and lifestyle advantages.
In conclusion, for real estate investors, residential properties in Rochester, commercial assets in Albany/Troy, and tourism small businesses across Upstate New York can provide attractive returns. Appreciating farmland values in counties like Lewis also present strong opportunities. Upstate New York’s economic growth, affordability, and high quality of life will continue drawing investors and residents alike in 2023.