Attention Investors. It's Time To Check Out The Syrac US E Market

[James Lucenti]

Micron Technology's decision to build a massive 1,400-acre semiconductor manufacturing plant in Clay, NY, a suburb of Syracuse, is poised to have a transformative effect on the local housing market. This project, known as the Megafab factory, is expected to create over 50,000 job opportunities and contribute nearly $10 billion to New York’s real GDP over its first 31 years. With 9,000 of these positions offering salaries exceeding $100,000 annually, the influx of employees and their families is projected to drive up demand for housing significantly. Currently, Syracuse multi-family properties are yielding a 10 cap rate, indicating a strong investment opportunity, while in Binghamton, large multi-family listings average at or below a 7 cap rate. The anticipated surge in population in Onondaga County, expected to grow by 25% over the next two decades, will likely escalate property values and rental prices. The construction of 12,300 new housing units, including 5,300 by the end of 2024, highlights the growing demand, with a notable focus on multi-family units. Syracuse is leading in this trend, with 6,000 multi-family units under construction. Meanwhile, Clay is set to see 1,350 new single-family homes, reinforcing its role in meeting the rising demand. The overall real estate market in Onondaga County appears robust, with increasing property values and a preference for multi-family housing. Additionally, the expansion of supporting industries, such as retail and hospitality, further bolsters the region's real estate prospects. 

[Stephanie Jacobson]

Quote from @James Lucenti:

Micron Technology's decision to build a massive 1,400-acre semiconductor manufacturing plant in Clay, NY, a suburb of Syracuse, is poised to have a transformative effect on the local housing market. This project, known as the Megafab factory, is expected to create over 50,000 job opportunities and contribute nearly $10 billion to New York’s real GDP over its first 31 years. With 9,000 of these positions offering salaries exceeding $100,000 annually, the influx of employees and their families is projected to drive up demand for housing significantly. Currently, Syracuse multi-family properties are yielding a 10 cap rate, indicating a strong investment opportunity, while in Binghamton, large multi-family listings average at or below a 7 cap rate. The anticipated surge in population in Onondaga County, expected to grow by 25% over the next two decades, will likely escalate property values and rental prices. The construction of 12,300 new housing units, including 5,300 by the end of 2024, highlights the growing demand, with a notable focus on multi-family units. Syracuse is leading in this trend, with 6,000 multi-family units under construction. Meanwhile, Clay is set to see 1,350 new single-family homes, reinforcing its role in meeting the rising demand. The overall real estate market in Onondaga County appears robust, with increasing property values and a preference for multi-family housing. Additionally, the expansion of supporting industries, such as retail and hospitality, further bolsters the region's real estate prospects. 

I hate to rain on this parade but I haven’t seen a property trade at a 10-cap in Syracuse in the last twelve months. In fact, across the board, out of town investors are buying at *negative returns* which is making it absolutely impossible for savvy, educated investors to even get their foots in the door. I have one buyer willing to purchase at a 5-cap who’s been outbid eleven times in a row. Everyone is gambling, and I keep advising my clients to please not compete with that level of moronic. 

Maybe I should amend that- there might be properties trading over a 5-cap, but most likely in the southwest quadrant of the city where I would never show a property alone.

 In Syracuse, the $800k+ price range is experiencing slightly less competition- I had a large complex just close at a 7-cap. Best I’ve seen all year. 

Anyway. Careful with advising buyers in that area, it’s tough out there!

[James Lucenti]

Thanks Stephanie. I appreciate your insight and experience.

[Ryan Kanaley]

Well, who do I have to talk to, to buy land to either build or get an MFH before it’s complete? 

[Stephanie Jacobson]

Quote from @Ryan Kanaley:

Well, who do I have to talk to, to buy land to either build or get an MFH before it’s complete? 

As far as an agent or the municipality? For agents @James Lucenti or I could help (and you can see James is much more optimistic, haha!). If you use the agent finder tool you’ll get me, so save yourself the time there.

As far as the municipality, most of my folks are keeping a close eye on Clay, Cicero and North Syracuse. If you’re looking for information on zoning, regulations and permits, I would start with one of them. 

[Michael Carter]

Quote from @Ryan Kanaley:

Well, who do I have to talk to, to buy land to either build or get an MFH before it’s complete? 

It's already too late to try get either of these in Clay (for good deals at least). As soon as the announcement came, land started being listed for several millions when previously the same parcel would have been in the 100ks. My philosophy will likely be to target lesser desired areas that are still an easy commute to the Clay area which 481 goes through. 

For a good example. Phoenix NY is only 10-15 minutes northwest of the Micron site, and is a small and relatively unknown village. There is a 1 acre lot (currently pending) that is listed for only 75k. There is an apartment building adjacent to it, and this lot would make an excellent spot for another. 

In addition to Stephanie and James, I am an agent (newer) as well and aspiring investor. Live in Syracuse. Feel free to reach out if you'd like to connect more!