GOBankingRates spoke to experts to get their thoughts on the areas of the great state that’ll see the most of a downward shift. Here are five New York housing markets that will plummet in value by the end of 2025 .
“Binghamton has been losing jobs and people over the years which could cause home prices to drop in the near future,” he said. “With fewer jobs available it’s harder for people to buy homes and that makes home values go down.”
This combination of job losses and population decline creates a perfect storm for falling home prices. As employment opportunities dwindle, fewer people can afford to purchase homes, leading to decreased demand and, as a result, lower property values.
Utica is another city facing potential housing market challenges.
“Utica’s economy isn’t growing much and the population is getting smaller which means home prices could fall as there are fewer people looking to buy,” Flanders shared. “When fewer people want to live in an area houses take longer to sell which lowers their value.”
The stagnant economy coupled with a shrinking population is a recipe for declining home values. As the pool of potential buyers decreases, homes remain on the market longer, forcing sellers to lower their prices to attract buyers.
Watertown
Watertown’s housing market faces a unique challenge due to its dependence on military jobs.
“Watertown depends on military jobs from nearby bases so if there are cuts in defense spending home prices could drop,” Flanders said. “Fewer military personnel means fewer homebuyers which can make home values go down.”
This reliance on a single sector makes Watertown’s housing market potentially vulnerable. Any large cut could mean the demand for housing will plummet, and property values will decline quickly.
Elmira
Elmira’s economic struggles are putting pressure on its housing market.
According to Flanders, “Elmira has a weak economy and high unemployment which makes it hard for people to afford homes and that causes prices to drop. Without enough jobs, fewer people are able to buy houses which pushes home values lower.”
The potential double whammy of a weak economy and high unemployment rates creates a difficult environment for the housing market, to put it lightly. As fewer residents can afford to purchase homes, demand decreases, leading to potential price plummets.
New York City’s Luxury Condominium Market
The luxury condominium market in New York City, particularly in Manhattan, is showing signs of potential decline. Thomas J. Brock, CFA, CPA for RetireGuide , provided insight into this niche market.
“A particularly vulnerable New York housing market that could experience unfavorable conditions in 2025 is New York City’s luxury condominium market. Manhattan has experienced notable oversupply in recent years, and it has grown more apparent since the COVID-19 pandemic.”
Brock further explained the shift in market dynamics: “Foreign buyers once drove seemingly unrelenting demand, but this has dried up, largely due to stricter U.S. immigration and tax policies and the global economic slowdown. Now, luxury condo developers and banks are sitting on a costly glut. This could result in a dramatic price correction in 2025.”
When you take into consideration decreased foreign investment and changing global economic conditions, this oversupply could lead to a significant drop in luxury condo prices in Manhattan by 2025.
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