Looking to Invest in the Buffalo Real Estate Market?

Investing in real estate in Buffalo, NY can be a smart move for several strategic and financial reasons. Here’s a breakdown of why:

🔑 1. Affordable Entry Prices

  • Low property costs compared to national averages make Buffalo an accessible market for first-time investors.

  • Median home prices are significantly below major metro areas like NYC, Boston, or San Francisco.

  • Easier to cash flow positively on rental properties, even with 20-25% down.

💸 2. Strong Rental Demand

  • High percentage of renters, especially near universities (UB, Canisius, Buffalo State) and downtown.

  • Many neighborhoods (e.g., Elmwood Village, North Buffalo, Allentown) have steady demand for long-term and student rentals.

  • Rising housing costs elsewhere are driving more renters to markets like Buffalo.

📈 3. Appreciation Potential

  • Buffalo has seen modest but consistent appreciation over the last decade.

  • Ongoing revitalization in areas like the Canalside, Larkinville, and the Medical Campus are driving up values.

  • Investments in infrastructure and business are creating long-term value.

🧊 4. Stable Economy

  • Anchor institutions: Healthcare (Kaleida Health, ECMC), education (University at Buffalo), and government.

  • Buffalo’s economy is less volatile than tech-centric cities — it's a resilient, blue-collar economy.

  • Cost of living remains manageable, so people stay put.

🧠 5. Pro-Investor Climate

  • New York State is not the easiest for landlords overall, but Buffalo stands out with:

    • A community of local investors.

    • Reasonable property taxes (compared to downstate).

    • City-led programs for housing redevelopment and historic restoration.

🌆 6. Growth & Development

  • Billions invested into the Buffalo Niagara Medical Campus, making it a growth hub for healthcare and research.

  • Tesla's Gigafactory and other tech-forward employers are bringing jobs.

  • Downtown revitalization and increased tourism via Niagara Falls are boosting commercial property values.

7. Strong Cap Rates

  • Investors often see cap rates between 6.5%–10.5%, which is high compared to coastal markets.

  • Duplexes and small multis are plentiful, giving you scale without the risk of large commercial buildings.

⚠️ Caveats to Consider

  • Harsh winters can lead to higher maintenance costs.

  • Eviction process in New York State can be slow — screening tenants is critical.

  • Certain neighborhoods still experience high vacancy or crime — local market knowledge is essential.

If you’re looking for cash flow, stable demand, and long-term upside without breaking the bank, Buffalo is worth serious consideration.

Why Buy Investment Properties in WNY?

Buffalo is an up and coming city and the 2nd largest in NY. Economically, Buffalo has seen major improvements in the past decade. Money from New York State Governor Andrew Cuomo through a program known locally as "Buffalo Billion" brought new construction, increased development, and hundreds of new jobs to the area. With affordable housing, overall low living costs, and an economically diverse population, the real estate market is booming. People love living in Buffalo: there is always lots to do, delicious food, and friendly residents.

Niagara Falls has huge potential. The housing market has not seen the same jump as Buffalo has, thus, from an equity standpoint, there is a lot of room to grow. The owner to rental ratio is higher in Niagara Falls than Buffalo meaning that the neighborhoods and homes are generally better-kept. Right now you can buy Niagara Falls homes in a better neighborhood than Buffalo houses at a better value. With many stores and restaurants, Niagara Falls is also a great place to live. It is within walking distance to a gorgeous wonder of the world: Niagara Falls. The city is pushing to improve their living conditions and deteriorated houses (see the article below). As this project progresses, this will cause an increase in home prices. We believe that Niagara Falls is going to see significant economic improvement in the coming years.

See Licensed Real Estate Salesperson Danielle Pruitt with Blue Eagle Realty talk to Eyewitness News 7 about the Niagara Falls foreclosure auction, economy, and housing market here: https://www.wkbw.com/news/niagara-falls-auctions-hundreds-of-properties

The millennial generation and some older baby boomers are increasingly looking to rent instead of buy. “When we show houses, we can get upwards of 30 applicants,” ABC Property Management told us. This push towards leasing means higher rents and better tenants. Because the rental market is competitive, tenants know how hard it can be to find a nice place. These tenants stay longer, maintain the house, and pay on time. The chart below, posted by Buffalo Rising shows the increase in rents in Buffalo compared to other NY cities.

For Sale By Owner or Real Estate Agent?

One of my favorite nondescript answers to any questions is: it depends. While this may irk you hear me out. If you already know someone who will buy your property for what you know to be a good price then by all means sell it yourself. If you know what your property is worth and know how to market the property well enough to sell it for that price then again, by all means sell it yourself. Now if you are like most people where you only have a guess on how much your property is worth and don’t know the first thing about marketing a property then you might what to consider using a real estate agent. Depending on the area and type of sale, Realtor® fees can be between 5 and 6 percent of the sale price. That means if a real estate agent can get you just 5 or 6 percent more than what you can get on your own, then it is worth it! You could easily misjudge the value of your home by that and if you cannot find a buyer on your own then that’s no good either. Generally realtors can find many more potential buyers which means that you can sell with more confidence knowing you got the best possible price for your home. Furthermore, real estate agents sell properties all the time so they know their way around negotiations and contracts. So just call a real estate professional unless you really know what you are getting into, I promise they don’t bite.

To Rent or to Buy? That is the question....

Should I rent or buy?

This is one of the most common questions I hear in real estate. Is it better to rent or to buy? Well, my answer may not be the answer you’re looking for: it depends. I would say 9 times out of 10 it is better to buy, but certainly not always. You want to be searching for the best deal and generally the best deals are buying. The landlords you rent from are going to be making money off of you unless you truly have a smoking deal. So why not make money off of yourself and be your own landlord? Nobody is going to be a better tenant to you than yourself so if you can afford to buy that is normally the way to go. One of the downsides to buying is that your property value is subject to the housing market. Normally this is good because historically real estate appreciates in value, but if you are buying when prices are high and then the market crashes, you can find yourself in a pickle. Even with this potential downside, the housing market does normally bounce back up. So next time someone asks you is it better to rent or to buy you know what to tell them. It depends.