For many first-time homebuyers, the journey of owning a small, affordable starter home in New York has become daunting in recent years—but not impossible.
With sky-high real estate prices in many parts of the state and a housing market that’s getting more competitive by the day, the steps to buying a house for the first time in NY can feel overwhelming.
However, the key to success is to know what you’re up against. Whether you’re looking to live in the city or upstate, understanding how far your salary will stretch will help prospective homeowners find value in locations perhaps they didn’t initially consider.
Is Buying a Starter Home in New York Worth It?
Whether purchasing a starter home in New York is a sound investment depends on the location. In areas like Western New York and parts of the Hudson Valley, home values have grown at a stable pace, offering a fair return over five years.
However, in high-cost areas such as New York City, affordability and low new construction rates reduce the appeal. New York received an “F” on Realtor.com’s housing report card, indicating poor affordability and limited housing development. The state’s Realtor.com® Affordability Score stands at just 0.50.
Nonetheless, strategic buyers who explore alternative options like condos or who utilize down payment assistance and mortgages for first-time homebuyers can still find viable paths to home ownership. Understanding how to qualify for financing options is essential in navigating this tough but potentially rewarding market.
New York might not be the most affordable state to live, but with the right strategy, it still offers entry points into the real estate market for those determined to make it home.
What It Costs To Afford a Starter Home in New York
In 2024, the average price of a starter home in New York was $335,230. To afford that with a standard mortgage rate of 7% and a 10% down payment—while estimating payments being within 30% of your income—a buyer would need to earn at least $80,291 per year for a place.
Unsurprisingly, that places New York among the hardest housing markets to break into. By comparison, neighboring states like Pennsylvania require $44,561 in income, and Vermont requires $80,964. In short, within Northeast region, New York remains one of the least accessible places to purchase a home.
Affordability concerns are starkest in high-end areas. According to Realtor.com data, Water Mill in Southampton is the most expensive city for a starter home in the country, with a median price of $5.48 million. Across the state, 10 cities report median starter home prices above $1 million.
Best and Worst Places in New York for Starter Homes
Despite steep state averages, several cities offer comparatively accessible housing:
- Buffalo: Median prices are actually below $300,000, and inventory is relatively high. If you can manage the winter months, this could be a solid option
- Rochester: With mid-$200,000 prices and solid infrastructure, it’s a practical choice, though you’ll need to love that lake life.
- Syracuse: The most affordable locale on the list, this upstate locale has modest prices, with a median price of $200,000. It’s ideal for budget-conscious buyers, but it’s also a college town.
On the flip side, these cities are among the least affordable:
- Water Mill: Living in Southampton comes with a hefty price tag: a median price over $5 million, to be exact.
- Greenwich Village : Prices in Manhattan often exceed what’s available in the rest of the state, but if you’re looking to live in the city, you’ll have to prepared to shell out over $1 million.
- Brooklyn Heights: There’s lots to love about this outer-borough neighborhood. Historic charm, famous neighbors, fine eateries—but limited listings and intense popularity have driven median prices well past $1 million.
Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
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