Buffalo City is located in Western New York State and many investors see it as a secure and stable investment. With an Olmsted Park system (the designer of New York City’s Central Park), an expansive arts community, an extensive waterfront, low cost of living combined with high quality of life, world-renown bio-medical research centres and architecture, and numerous colleges and universities, Buffalo City is a stable economy that also offers a strong rental market. Buffalo is now one of the top ten fastest growing cities for the key ‘college graduates’ demographic and is firmly back on the growth track in terms of GDP growth, unemployment, and population. Business Week recently voted Buffalo as one of the top ten cities to ride out the recession, based on its high share of employment in strong industries such as healthcare and debt collection.
The Rental Market
The low cost of single-family housing and relatively high rents provide gross yields in excess of 20% on investment properties. The city has a heavy proportion of renters versus owners (57% of residents are renters versus 47% in New York State overall), which ensures a solid pool of prospective tenants. Vacancy rates are approximately 9%, which is below the national average of over 11%. Over the last three years, rents have risen by a total of 14.1 percent, according to a national survey. In contrast, the median sale price of homes in the Buffalo Niagara region has risen just 1.7 percent since 2012, according to data from the National Association of Realtors. The increase in rents is a sign of the improving local economy, as well as a population that has begun to stabilise after years of decline. Job growth and development, especially that associated with the Buffalo Niagara Medical Campus, is attracting young professionals and new graduates, who typically rent rather than buy.
Buffalo is located on the eastern end of Lake Erie, opposite Fort Erie, Ontario, and at the beginning of the Niagara River. Buffalo City is the second largest city in New York State and commonly referred to as the “Queen City’. Over 261,000 live in the city centre with close to one million people living in the greater metropolitan area.
Growth and Returns
Downtown Buffalo is undergoing a renaissance as a result of all the current development activity and plans for the future. The Buffalo Billion Investment Development Plan is a plan developed by the Western New York Regional Economic Development Council (WNY REDC) at the request of Governor Andrew Cuomo. The plan encompasses an in depth analysis of the levers that drive Buffalo’s and the region’s growth within a global context, promotes strategies based upon Buffalo’s unique assets, and advances early initiatives for implementation. Buffalo Billion funds will be utilised to create accessible, vibrant and sustainable communities including expanding the waterfront, Buffalo Harbor State Park will receive an initial investment of $15 million alone. The plan also includes spending in excess of $30 million on improved transportation and updating the main shopping streets.
Management and Aftercare
In Buffalo we work with one, reliable and consistent partner who is local to the area and has been a hands-on expert in the local market for over a decade. . Our partner says: “The Buffalo rental market is one of the strongest in the US, average rental time is less than 30 days from start to finish “ Our partner is one of the leading Buffalo management companies who will collect and deposit your rent, maintain and repair the property, assess and interview tenants and keep you updated on a regular basis.