The median home value in the state was around $403,000 as of the early 2020s.
Even as sales volume slowed in 20222023, prices stayed high or continued rising due to limited supply.
One big reason for persistent high prices is record-low inventory.
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Meanwhile, mortgage interest rates rose dramatically.
However, by 2023 rates had climbed to about 67%, the highest in roughly 20 years.
These higher rates significantly increased monthly mortgage payments, worsening affordability.
The homeownership rate hit a low of about 50% in 2018, after the last recession.
By 2022 it had grown to 53.6%, and has hovered in the 5354% range through 2023.
This is still far below the national homeownership rate (~66%).
Affordability metrics have worsened.
What Types of Homes Are People Buying?
For budget-conscious buyers, the bang out of property matters for affordability.
Single-family homes remain the most common purchase for homeowners statewide.
About 76.6% of New York owner-occupied homes are single-unit houses (either detached houses or townhouses).
In New York City and some downstate areas, many households buy condominiums or cooperatives (co-ops) instead.
Statewide, about 10.7% of homeowners live in apartment buildings with 10+ units.
Two- to four-family homes (duplexes, triplexes, etc.)
are another property throw in some budget-minded buyers choose.
These make up roughly 9% of owner-occupied homes in NY.
Only about 2.6% of New York homeowners live in mobile or other manufactured housing.
These homes tend to be much cheaper but often are located in parks or on leased land.
Upsizing moving to a larger home was common for many young families and remote workers.
Many millennial buyers in their 30s moved out of NYC to purchase their first homes in surrounding suburbs.
Downsizing and Aging in Place
Some homeowners have been downsizing, though this trend has nuances.
Some older Boomers did downsize for retirement or relocate to cheaper areas.
However, an interesting counter-trend is aging in place.
This reduced the volume of downsizing moves.
Rise of Multi-Generational Households
One notable trend has been the rise of multi-generational home purchases.
Data showed that 15% of first-time buyers and 14% of repeat buyers in 2022 bought multi-generational homes.
In New York, high housing costs pushed families to pool resources.
Cost savings was a major factor, cited by 28% of first-time buyers in multi-gen purchases.
By combining incomes, families could qualify for a mortgage and share expenses.
New Yorks cultural diversity also plays a role multi-generational living has long been common among some immigrant communities.
The 20182023 period saw it enter the mainstream out of economic necessity.
Realtors noted more buyers specifically seeking homes with extra units or basement apartments for extended family.
Regional Differences: NYC vs.
Upstate
New York States housing trends can vary dramatically by region.
The starkest contrast is between New York City (and its suburbs) and Upstate New York.
In New York City, housing is largely multi-family and extremely expensive.
The median sale price in NYC has been around $750,000$800,000 in 20222023.
For example, the median in 2023 was $764K.
These prices are far above what most middle-income families can afford.
During 20202021, thousands of New Yorkers left the city in search of more space or lower costs.
This net out-migration lowered demand in NYC temporarily.
New York State had a net domestic migration loss of over 216,000 people in 2023.
Some moved to Sunbelt states, but others relocated within New York to upstate or outer suburbs.
These areas historically had much lower prices.
The result: home prices upstate and in the Hudson Valley climbed dramatically from 2019 to 2023.
For example, Westchester Countys median home price rose about 38% from 2019 into late 2023.
The pandemic basically supercharged this existing pattern of migration from high-cost city centers to relatively cheaper peripheries.
Both homeowners and renters have been burdened by high costs relative to their incomes.
Price-to-income ratios grew throughout this period.
For renters, the situation is even tougher.
Rental cost burdens in New York are among the worst in the nation.
In 2022, about 52.4% of New York renters paid more than 30% of income on rent.
Rents rose during 20182023, especially after an initial dip in 2020.
High rent makes it hard to save for a down payment.
Homeownership rates among younger adults have thus been depressed.
The typical first-time buyer age climbed to 36-38 by the early 2020s, as millennials delayed buying.
In 2022, first-time buyers made up only 24% of home sales a record low share.
These include competitive fixed rates and down payment assistance loans.
That amount was increased (from $40k prior) to better match NYCs high prices.
FHA loans allow as little as 3.5% down and more flexible credit.
The VA loan program similarly helped veteran buyers with zero-down options.
The Biden Administration in 20212023 also announced initiatives to help buyers and reduce discrimination.
For instance, $100 million in new federal funding for states to support sustainable homeownership was rolled out.
For example, some upstate cities offer down payment grants (often funded by Community Development Block Grants).
From 2013 to 2017, prices gradually recovered at a modest pace.
Overall, 20082017 was a period of relatively slow growth in home prices.
Homeownership and Demand
After the 2008 crash, homeownership rates dropped.
New Yorks homeownership rate went from ~56% in 2005 to around 50% by 2015.
By contrast, 20182023 saw a resurgence of demand (at least until interest rates spiked).
Millennials entered their 30s and started buying in large numbers.
The pandemic added an unexpected demand surge (people seeking more space, etc.
), which was not a factor in the earlier period.
Foreclosed homes and new constructions sat unsold in the late 2000s.
Fast forward to 20182023, housing construction never caught up.
By 2023, listings were at record lows.
These ultra-low rates in 202021 encouraged many to buy or refinance.
But come 20222023, rates jumped back to ~7%, similar to 2008 levels.
Pandemic-era policies included eviction moratoriums and mortgage forbearance.
The dream of homeownership became both richly rewarding and increasingly elusive at the same time.
