Recent data suggests home prices in the Hudson Valley might stabilize after rapid increases. But are things really calming down, or is there more to the story?
Let’s break down the numbers and find out what’s actually going on in this hot housing market.
- Hudson Valley home price growth has slowed, but prices remain high, especially in Ulster County.
- A sharp increase in Ulster County home prices in 2023 affects current growth comparisons.
- Renters are facing major challenges as rents skyrocket while wages stay flat.
Home Price Growth Slows in Ulster County, NY – But Prices Stay High
In counties like Ulster, Orange, and Dutchess, the average increase in home prices over the last year is about 8.26%.
And by comparison, that’s a big change from the 25.5% price jump between May 2023 and May 2024 that shocked many locals.
But the slower growth doesn’t mean prices have dropped. Instead, this smaller increase is mainly due to some unusual numbers from 2023.
In Ulster County, home prices took a big dip in May 2023, then jumped back by May 2024, peaking at $446,250.
As we can see, that huge price spike skews the yearly comparison, making it look like growth has slowed dramatically.
While Ulster County still saw a 9.8% rise in home prices over the past year, the real takeaway is that prices remain high overall.
Sure, Ulster County still has some of the highest price increases, but Dutchess County tops the charts regarding overall home costs.
Why Ulster County is Getting So Popular (And Expensive)
One big reason for Ulster County’s rapid price growth is its increasing popularity. As home prices have soared, so has interest from out-of-towners looking for homes or vacation spots.
Now, the area is a hotspot for tourism, second homes, and even some celebrity attention.
For example, Ulster has seen a record number of marriage license applications in recent months.
According to Town Clerk Suzanne Reavy, the rise in weddings mirrors a growing interest in the area as a destination.
At the same time, this demand has also led to increased luxury Airbnb rentals and interest from people who want a getaway from the city.
As a result, prices are going up as more people look to settle or invest in Ulster County, making it one of the hottest real estate markets in the Hudson Valley.
Renters Face Major Challenges as Rents Keep Rising
While home prices are high, the rental market in the Hudson Valley is becoming just as tough. Renters, especially in cities like Beacon, are finding it increasingly difficult to find affordable housing.
Take the story of Amanda Pabon and Troy Mongillo, a couple who struggled to find an apartment in their price range after leaving their old place due to constant noise and construction.
After weeks of searching, they were shocked by the limited number of apartments and the high demands from landlords.
This isn’t solely a Beacon problem, though. Across the Hudson Valley, rents are rising faster than wages, leaving many people priced out of the rental market.
According to a report by Hudson Valley Pattern for Progress, rents have risen by as much as 45% in some areas since 2019.
Meanwhile, wages have barely budged. Adam Bosch, the president of the organization, says that many people who can’t afford to buy homes are now turning to rentals, driving up demand and pushing prices even higher.
Single-Family Home Sales Surge Across the Region
Despite these challenges, the Hudson Valley real estate market remains active.
Interestingly, single-family home sales have increased in most parts of the region, with Putnam County leading the way with a 44.1% increase in closed sales. However, Orange County saw a 10.8% drop in sales.
Condo sales are also rising, especially in Rockland County, where sales jumped by 79.3% in July 2024. Following this trend, condo prices have followed suit, with the median price climbing to $407,500, up 31.5% from last year.
Westchester County, known for having some of the most expensive real estate in the region, saw its median home price dip slightly to $1,010,000, down from a high of $1,031,500 earlier this year.
However, condo and co-op sales are still rising, with the median price for condos now at $525,000.
The Hudson Valley Real Estate Market Is Still Changing
The real estate market in the Hudson Valley is going through changes. Some areas are seeing slower growth in home prices, while others continue to rise.
For renters, the situation is especially tough, with rents climbing faster than wages and affordable housing becoming harder to find.
But overall, the demand for homes and rentals remains high, showing that the Hudson Valley continues to be a desirable place to live—even as it faces new challenges.
