In Less Than a Decade, You Won’t Be Able To Afford Homes in These New York Areas

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Elevated mortgage rates, rising home prices and low housing inventory have made it challenging for most prospective homebuyers in New York to afford a home. Home prices are dropping in some parts of the state, but this isn’t the case everywhere.

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According to Forbes, the low inventory in many communities, especially those in more affordable markets, sparked competition among buyers. This put upward pressure on home prices, causing prices in nearly half of New York’s counties to rise during the second quarter of 2023.

Data from real estate brokerage Redfin shows that home prices in the Empire State are over $100,000 more expensive than the national median sales price of $433,558. As of April 2024, the median sales price statewide was $541,700, a 5.5% increase year over year.

Here are 10 New York areas with the fastest-growing sales price in the state as of April 2024, according to Redfin.

1. Ramapo: 86.2%

2. White Plains: 79.7%

3. New Rochelle: 64.8%

4. Penfield: 53.0%

5. Yonkers: 52.5%

6. Ridge: 34.3%

7. Troy: 33.5%

8. Coram: 32.2%

9. Niagara Falls: 30.4%

10. Dix Hills: 28.5%

Buyers are now more hesitant to enter the market, and some homeowners are even staying in their homes longer and waiting for market conditions to improve before selling, according to Forbes. Consequently, home sales are down, but it may not stay that way for long.

Jeffrey Decatur, a licensed broker associate at RE/MAX Capital, told Forbes that although home sales are down statewide, “the market is still very active and healthy.”

More buyers are also entering the new construction market as a way to deal with low inventory of existing homes for sale. However, the market likely won’t see any major changes as long as demand continues to outpace the housing supply.

“I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm, explained to Forbes.

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This article originally appeared on GOBankingRates.com: In Less Than a Decade, You Won’t Be Able To Afford Homes in These New York Areas