Top Choice for First-Time Home Buyers Just Outside Rochester, N.Y.

The housing market in upstate New York continues to make headlines, with Irondequoit, a northern suburb of Rochester, claiming the top spot in Realtor.com’s ranking of 2024’s premier housing markets, particularly for first-time homebuyers. This recognition follows Zillow’s recent declaration of Buffalo, NY, as the “hottest” housing market for 2024. Realtor.com evaluated various factors, including inventory, home prices, expected price appreciation, cultural vibrancy, and commute times, to determine the best areas for first-time buyers.

Irondequoit secured its position at the pinnacle due to the combination of its affordable housing stock and the anticipated growth in property values. With a median listing price of $187,000 as of November—significantly lower than the national median of $382,230—a buyer putting 5% down on a typical Irondequoit home could expect a monthly mortgage payment of less than $1,200. However, the challenge lies in the scarcity of available homes, as inventory in Irondequoit was extremely low in December, with homes being snapped up within 27 days, compared to the national average of 61 days.

In December, there were 11.5% fewer homes for sale in Irondequoit than the previous year, highlighting a historic low in inventory. Michael O’Connor, president of the Greater Rochester Association of Realtors, emphasized the unprecedented nature of the situation, stating, “We have nothing.” Irondequoit and the broader Rochester area have become popular due to the affordability of homes, as well as being a gateway to the Finger Lakes region, known for its hiking trails, wine trails, breweries, distilleries, and museums.

Similar to many parts of the U.S., low inventory in Irondequoit is attributed to homeowners with ultralow interest rates showing little incentive to sell, along with others who own their homes outright. Selling can be challenging, even if homeowners decide to do so, given the significant increase in housing prices. O’Connor’s data revealed a 17.7% year-over-year increase in home prices in Irondequoit in December. Homes in the area tended to sell at 20% over their list prices in 2023, up from 16% the previous year.

The dilemma faced by buyers in Irondequoit revolves around the scarcity of inventory and skyrocketing home prices. Danielle Hale, chief economist at Realtor.com, highlighted that the analysis considered the general availability of homes for sale relative to the number of families in the market, emphasizing the level of availability rather than whether it’s improving or worsening.