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Whether you want to buy property as an investment or for your own sake, there are a slew of factors to consider. As the saying goes, “location, location, location” tends to be the main driver when it comes to the value of a home. And when it comes to New York, the disparity in price varies wildly across the state.
However, these are not the only factors to consider. Experts said that buying a property in certain New York cities can be risky and make poor financial decisions. In turn, they said, there are also several aspects to consider, including economic challenges, high unemployment, high costs, crime rate or supply issues.
According to experts, here are the worst cities to buy property in the next five years.
According to Shannon Feick, co-owner and co-founder at ASAP Properties, despite its affordable housing, the slow recovery from economic downturns in the last several years and shrinking local industries may prevent significant property value increases in Syracuse.
In addition, Kwame Darko, a real estate agent and the founder of KD Buys Houses, noted that due to the city’s gradual loss of population, which directly affects the demand for housing, the property taxes are likely to go up.
“Coupled with slow economic growth and limited job opportunities, the property is expected to either remain the same or fall below its current level,” said Darko.
Darko noted that financial instability and economic uncertainty are two significant factors influencing Buffalo’s real estate market.
“The unshakable frailty in key enterprises prevents the city’s economy from recovering entirely, in spite of some revival endeavors,” he said, adding that the prices of properties in Buffalo heavily fluctuate, making it extremely risky to invest in the long term.
ASAP Properties’ Feick said Newburgh has rising crime rates and economic instability, making it a risky investment over the next five years.
“I see property values becoming stagnant in Newburgh,” she said.
As for Binghamton, the city has a declining population and limited job growth. The real estate market shows little potential for appreciation, making it a poor long-term investment, according to Feick.
In Schenectady, unemployment is high, and the economy is declining, which, in turn, negatively affects the demand for housing, according to Darko.
New York City’s nearby wealthy suburbs in Westchester County, including Chappaqua and Rye, command a significant premium because of their proximity to the city and strong public schools, said Alex Blackwood, CEO, co-founder, of Mogul Club.
These areas attract families and are becoming increasingly unaffordable due to high demand and rising property taxes, said Blackwood.
“In general, any area a commute away from Manhattan with good education options and ease of life faces steep real estate prices and high taxes, making them tough spots for homebuyers,” he added.