Is Syracuse, NY really a dump?? Maybe not.
Syracuse, a prominent city in New York, offers a rich tapestry of culture, history, and education, highlighted by institutions like Syracuse University. Known for its robust journalism program and spirited sports culture, the city also presents a variety of museums, such as the Everson Museum of Art and the Erie Canal Museum. Notably, Syracuse is recognized for its snowy winters, providing ample opportunities for winter sports enthusiasts. It is also a great place for flippers to make some $$$$$$.
Demographic Snapshot
- Population Dynamics: Higher populations in zip codes 13208 and 13210 suggest a vibrant rental market, whereas 13224’s higher median income points to the potential for luxury real estate investments.
- Age and Housing Needs: The younger demographics in zip codes 13204, 13205, and 13210 indicate a need for affordable, compact living spaces suitable for young singles and new families.
- Gen Z is actively moving to Syracuse, NY:
https://www.localsyr.com/news/gen-z-is-moving-to-major-cities-including-syracuse-why/
This migrational data is supported by search terms for jobs at Amazon being up 900% YoY:
| Keyword | Avg. monthly searches | YoY change |
|---|---|---|
| amazon jobs syracuse ny | 500 | 900% |
| amazon careers syracuse ny | 500 | 900% |
Market Analysis and Rent Trends
- Rental Scene: There is a stark contrast in rental prices across the zip codes. For instance, zip code 13210 shows a substantial rental market with higher median rents, especially for larger units. This could indicate a premium market with potentially higher profit margins on flips.
- Housing Structures: Zip code 13224 shows a high number of multi-family structures, particularly those with more than 50 units, suggesting a potentially saturated rental market or a demand for apartment living.
- Market Outlook Combined with Google Search Data:
- 13224: Witnessing a notable 53.7% surge in median sale prices for 4-bedroom homes and a 19.7% uptick for 5+ bedrooms reflects a buoyant market for larger residences. High search volumes for terms like "luxury apartments Syracuse NY" and "new apartments Syracuse NY" mirror the interest in upscale living spaces, particularly evident in this zip code. The uptick in multi-family construction, with 52 new units being permitted in 2024, underscores a growing preference for apartment living, further supporting upscale conversions or new developments.
- 13210: The sales data shows a 28.5% increase in the price of 5+ bedroom homes, and other categories also saw price increases, such as a 15% increase in 2-bedroom homes, indicating healthy market conditions for larger family-oriented properties. This zip code has a high population density with a substantial portion of the population in age groups likely to rent (22 to 34 years and under 18 years), suggesting a steady demand for rental properties. Consistent search volumes for rental-related queries like "apartments for rent Syracuse NY" match well with the demographic profile, indicating ongoing interest in housing in this area.
Supply and Demand Dynamics
- Building Permits: A notable surge in building permits in 2024, particularly for 2-unit and 5+ unit multi-family structures, notably in zip code 13224, signifies both growing demand and increasing supply, potentially influencing market prices.
| 2024 | |
|---|---|
| Total Units | 56 |
| Units in Single-Family Structures | 4 |
| Units in All Multi-Family Structures | 52 |
| Units in 2-unit Multi-Family Structures | 32 |
| Units in 3- and 4-unit Multi-Family Structures | 0 |
| Units in 5+ Unit Multi-Family Structures | 20 |
Google Search Insights
- Search Trends: The terms "luxury apartments Syracuse NY" and "new apartments Syracuse NY" show increased interest, particularly with searches peaking for new construction assets. This is especially relevant to zip code 13224, where there's evidence of higher-income demographics and an increased rate of new building permits, which correlates with a market that can sustain higher-end flips.
- High Volume of Searches Related to Rentals: Keywords like "houses for rent Syracuse," "apartments for rent Syracuse NY," and "Syracuse apartments for rent" show a consistently high average monthly search volume of ~ 5,000. This suggests a strong ongoing demand for rental properties, which is critical for the real estate flipping market since it can indicate the ease of renting out or selling renovated properties.
- Interest in Affordability and Accessibility: Searches for "affordable housing Syracuse NY" and "low income apartments Syracuse NY" are consistent, which aligns with the interest in more affordable and accessible housing options. This supports investment in zip codes like 13206, where median incomes are lower and there is a significant increase in sales volumes for more affordably priced homes.
Based on the analysis, here are the recommended zip codes for lucrative property flipping in Syracuse NY:
13210: High Rental Demand Area (71.76% renter occupied) High rental demand, especially for larger units, and substantial search interest in the area suggest strong market dynamics favorable for flipping houses.
- Multi-bedroom homes, especially those with 4 or more bedrooms, as these have seen substantial appreciation. There is also an opportunity to target the rental market with renovations that cater to both families and young professionals given its large, diverse population and proximity to educational institutions.
- Enhance properties to appeal to families and young professionals, focusing on durability and functionality, such as open-plan kitchens and multiple bathrooms.
Example Investment: 130 Benedict Ave, Syracuse, NY 13210
130 Benedict Ave, Syracuse, NY 13210 | Zillow
Located right next to the Syracuse University, and currently rented under market for $1,200 a month. Some light repairs, updates and potentially an addition, could see this worth $200K+ to an investor.
13224: Luxury Market Potential
Despite its high-income profile and significant building activity, there's increased interest in luxury and new apartments, indicating room for high-end property flips.
- Focus on larger, multi-bedroom houses or convert them into high-end apartments. The data shows a significant appreciation in larger homes' prices and a notable interest in luxury and new apartments.
- Invest in substantial renovations with high-quality finishes, modern amenities, and possibly smart home technology to attract the upper-end market. Consider expanding single-family homes into multiple units if zoning permits, to maximize ROI. The demographic is higher-income, and there is a robust increase in building permits for multi-family structures, suggesting a readiness for upscale, possibly expansive living spaces that could attract premium prices.
Specific Focus: Scottholm area offers lucrative opportunities with 4+ bed houses selling for $300K+ in the past 6 months.
13206: Emerging Market for Affordability
- Target more affordable, multi-unit or single-family homes. There’s an observed increase in sales volumes and a moderate appreciation in house prices, coupled with a significant interest in affordable housing in the search data.
- Opt for cost-effective updates that improve structural integrity and aesthetic appeal, such as new fixtures, fresh paint, and updated kitchens and bathrooms. Efficiency apartments or duplexes can be particularly appealing in this market, providing affordable yet attractive options for potential buyers or renters. With a lower median income but active market conditions, focusing on value-driven renovations that enhance living quality without the high-end price tag could be most effective here.
- Veterans make up notable portions of the population in certain areas, such as in zip code 13206 where approximately 8.04% of the population are veterans. Develop housing solutions that cater specifically to the needs of veterans. This could involve creating accessible living spaces that are close to VA hospitals or clinics, community centers, and other veteran support services. Offering amenities that cater to older veterans, such as no-step entries, wider doorways, and emergency call buttons, could be advantageous.
Most Popular Reply
This is fantastic research, and I would mostly agree with both of you, but as an investor and commercial/investment real estate agent in Syracuse I can confirm that we have the good and bad that comes with a lot of the cities in New York outside of NYC. There are definitely rougher areas in the city itself, however mostly they can be a couple of blocks more than an entire zip code so it is good to have local eyes for a potential purchase.
While SU is a huge driver for the area, we have a lot of other economic drivers, including the two new Amazon facilities, but also newer companies such as TCGPlayer and Spincar, along with a multitude of new drone companies which are here for the expanding Tech Garden and the drone corridor which runs from Syracuse to Rome, NY.
Micron is not 10 years away, site work is actively underway and construction should begin later this year or beginning of next. I have been busy with out of state investors but also housing developers and supply companies coming into the area. This is a $100 billion project that has brought the President a couple of times already, as well as international interest in the area.
It seemed most of your great research was focused on the SU area only, but my biggest interest has been outside of those areas, especially north of the city. Rents for apartments and single family homes are up significantly, and I don’t see that trend ending any time soon: we are severely lacking in housing and available inventory. Also, SU has been building or buying up properties for students, which does cut into the student rental market. Almost independently from SU, Downtown Syracuse has been almost completely revitalized in the last 10 years, with waiting lists for rentals. I recently renovated a building downtown, and that investment paid off in spades. Our hospitals bring many people into the area, and we are going to see a tremendous increase in health care to take care of the 50,000 or more new residents that are projected to move here.
One thing to keep in mind, NYS is a very tenant friendly state. We are constantly having to deal with the state’s newest laws which almost always are a net negative to landlords, however we just deal with it (not much we can do), and are still able to have great investments as long as you understand and keep up with the tenant laws.
Please let me know if you have questions about the area. I have properties downtown and the surrounding area, and wish I had bought more!
- Stephen Schmitt
- [email protected]
- 3154577170
Yes, Syracuse is a diamond in the rough. Don't just buy cheap houses in the city, though. I would recommend going to the city and touring around so you know what you're getting into. There are some very rough parts. The old houses in the city need a lot of TLC. They all have lead paint, asbestos, and radon.
You could theoretically buy up one or two blocks of dilapidated houses near SU or Crouse Irving for cheap and fix them all at once and change the look of that particular block in the city, but it would be risky. Renting to SU students can be a complete nightmare because they can be heavy drinkers and destructive. There are serious students at SU and graduate students, but I don't know where they normal live...maybe out in the suburbs.
Some of the streets are less desirable because of the slope of the road/sidewalk and all the locals know you can't walk or drive on that street in the winter....something you don't know as a out of town investor.
There is also a culture of frugality overall. Don't think just because you're putting in nicer countertops and cabinets that renters or buyers will be willing to pay for that.
Overall the people in Syracuse are working class or lower middle class. There's isn't much as far as generational wealth. Houses did not increase in value that much over the last 20-30 years....and there's a reason for that. It's a depressed economy and you're not going to be able to get great rents. Making smaller apartments from single family isn't going to go over well either because people are used to getting more square footage for their money, unlike in NYC.
Micron is putting a chip factory in Clay, which is northeast of Syracuse. Probably won't be built for at least 10 years. It caused a surge in home and land prices in the Clay area. Overall the chip factory will promote a better economy but it may take time, maybe one or two decades.
There's a lot going for Syracuse, but tread carefully. There's an international airport. There's also Syracuse University and Upstate Medical Center. It's also smack dab in the middle of the state, so it's very central for conferences, shipping, and commuting. Even still, be careful.
All great points. Some of the data I mined on Syracuse was surprising, so I felt the need to share some here and help the community.
This is fantastic research, and I would mostly agree with both of you, but as an investor and commercial/investment real estate agent in Syracuse I can confirm that we have the good and bad that comes with a lot of the cities in New York outside of NYC. There are definitely rougher areas in the city itself, however mostly they can be a couple of blocks more than an entire zip code so it is good to have local eyes for a potential purchase.
While SU is a huge driver for the area, we have a lot of other economic drivers, including the two new Amazon facilities, but also newer companies such as TCGPlayer and Spincar, along with a multitude of new drone companies which are here for the expanding Tech Garden and the drone corridor which runs from Syracuse to Rome, NY.
Micron is not 10 years away, site work is actively underway and construction should begin later this year or beginning of next. I have been busy with out of state investors but also housing developers and supply companies coming into the area. This is a $100 billion project that has brought the President a couple of times already, as well as international interest in the area.
It seemed most of your great research was focused on the SU area only, but my biggest interest has been outside of those areas, especially north of the city. Rents for apartments and single family homes are up significantly, and I don’t see that trend ending any time soon: we are severely lacking in housing and available inventory. Also, SU has been building or buying up properties for students, which does cut into the student rental market. Almost independently from SU, Downtown Syracuse has been almost completely revitalized in the last 10 years, with waiting lists for rentals. I recently renovated a building downtown, and that investment paid off in spades. Our hospitals bring many people into the area, and we are going to see a tremendous increase in health care to take care of the 50,000 or more new residents that are projected to move here.
One thing to keep in mind, NYS is a very tenant friendly state. We are constantly having to deal with the state’s newest laws which almost always are a net negative to landlords, however we just deal with it (not much we can do), and are still able to have great investments as long as you understand and keep up with the tenant laws.
Please let me know if you have questions about the area. I have properties downtown and the surrounding area, and wish I had bought more!
- Stephen Schmitt
- [email protected]
- 3154577170
In my opinion, Micron won't be up and running for about 10 years. Construction starting at the end of this year or beginning of next will last 2-3 years at a minimum and then they have sensitive equipment to set up which will take another couple years. Yes, there's been a lot of pomp and circumstance hailing the coming of Micron, but I think the effect on the economy won't be felt for about a decade.
I just wanted to caution the out-of-towner investors. They see the houses listed for 80k or 100k and they'll get themselves into trouble without a dose of realism, in my opinion.
I can't refute your opinion Kristine, I am well aware of timelines for development. My family owned the golf course that Amazon bought for their $350 million distribution center in Liverpool, and each delay and request gave me a migraine while trying to deal with leagues and tournaments. It certainly didn't make their projected build completion date, going over by over a year (of course Covid was no help). However, my point is that the Micron effect has already begun, contractors, architects, environmental etc have started descending on the area, and need land/warehousing/temp housing, especially since Micron has shrunk it's timeline for the first 2 fabs to four years, to open in 2029, due to Intel and Taiwan getting more aggressive.
Investors do need to be aware of the different areas of growth, but waiting 10 years for investment in the area is like buying GameStop 3 days after the meme. I get regular updates from the county executive, and make sure to be in every significant meeting about Micron. It's definitely ramping up, and I do recommend caution and personal research as well, but that is true for any out of town investment. Also, the days of 80k to 100k houses are past. You'd have to put 50k in repairs for that price in most areas. Stay out of that price range unless you are prepared for a long grueling restoration.
- Stephen Schmitt
- [email protected]
- 3154577170
Appreciate the kind words and the local knowledge being shared. I saw a nugget around SU that I wanted to share with the community to be helpful, so I kept it short and sweet and hopefully tasty for others.
I also appreciate that you pointed out Syracuse is in New York State and is very "***" to investors/landlords.
@Stephen Schmitt thanks for sharing all this great information. I keeping hearing about manufacturing moving to the area with continuous investment which is a really great thing! Completely agree about NYS tenant friendly laws (I live in NY) and it can be tricky to navigate so I would definitely stress this for anyone thinking of investing from out of state.
I think the medical side that you have highlighted is very interesting because people forget what increasing population growth does to the healthcare and service sector. Really interesting to think about that from a medical housing point of view potentially.
Thanks again!