6 Northeast Cities To Buy Property in the Next 5 Years, According to Real Estate Agents
Written by
Jennifer Taylor
Edited by
Levi Leidy
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When you think about Northeast cities, those like New York and Boston likely come to mind. While incredible in their own rights, there’s plenty of other, more affordable options to choose from. Whether you’re looking for a small town, mid-sized city or even a spot on the water, there’s no shortage of options. These can be great for a primary home or even rental properties.
The good news is, some of the best cities in the Northeast are still a bit under the radar. This could mean now is a great time to start thinking about buying, as it may allow you to take advantage of lower home prices before they go up.
GOBankingRates spoke with two real estate experts to find out where to buy property in the next five years. Keep reading to see which six Northeast cities made the list.
Rochester, New York
- Median home sale price: $170,000
- Year-over-year home price increase: 13.3%
- Median gross rent: $1,043 per month
Located in the Finger Lakes region of New York, Rochester is situated on the southern shore of Lake Ontario. The city has a population of more than 200,000, according to the U.S. Census Bureau.
“With affordable home prices and growing industries like healthcare and education, Rochester is an attractive market for both residential and rental investments,” said Ben Wagner, real estate investor at Leave The Key Homebuyers, based in New York state. “Compared to other New York cities, its affordability makes it appealing for first-time investors.”
Providence, Rhode Island
- Median home sale price: $482,680
- Year-over-year home price increase: 5.3%
- Median gross rent: $1,501 per month
“Providence has seen steady growth in its tech and creative sectors, bringing more young professionals to the city,” Wagner said. “The relatively low cost of living and growing job market make it a great place to buy property now.”
The largest city in Rhode Island and also the most populous, Providence is home to just under 200,000 people, according the Census Bureau.
Hartford, Connecticut
- Median home sale price: $270,000
- Year-over-year home price decrease: 3.6%
- Median gross rent: $1,221 per month (Hartford County)
The Connecticut state capital, Hartford has a population of approximately 120,000 people, according to the Census Bureau.
“Hartford’s market is starting to gain traction after a long period of stagnation,” Wagner said. “With major companies headquartered in the city and a lower cost of living than nearby Boston or New York City, Hartford offers long-term potential for both appreciation and rental income.”
Long Island, New York (Suffolk County)
- Median home sale price: $653,000
- Year-over-year home price increase: 9.7%
- Median gross rent: $2,045 per month
Home to The Hamptons, Suffolk County has several glamorous beach towns, including Sag Harbor, Montauk, Southampton, Bridgehampton, East Hampton, Sag Harbor and Amagansett. The county has a population of more than 1.5 million, according to the Census Bureau.
“As someone who has focused on Long Island real estate for many years, I see Suffolk County continuing to grow in appeal,” Wagner said. “The ongoing exodus from New York City, combined with more remote work opportunities, means suburban areas like Suffolk are likely to see an uptick in demand for family homes in the coming years.”
It’s not the most affordable Northeast area by far, but he said it’s still worth buying property in Suffolk County.
“While cash flow is not as great due to higher housing prices and taxes, Long Island has been an appreciating market and has weathered market downturns very well due to limited new construction,” he said.
New Haven, Connecticut
- Median home sale price: $340,000
- Year-over-year home price increase: 9.7%
- Median gross rent: $1,235 per month
The home of Yale University and a growing tech industry, New Haven a great city to buy property in, said Dave Flanders, owner of HomeVisors Collective in Burlington, Connecticut.
“[It] offers excellent opportunities for rental income,” he said.
Located in south-central Connecticut, New Haven is the third-largest city in Connecticut. Roughly 865,000 people reside in the city, according to the Census Bureau.
Worchester, Massachusetts
- Median home sale price: $460,000
- Year-over-year home price increase: 7.1%
- Median gross rent: $1,605 per month
Conveniently situated in the center of Massachusetts, Worchester is roughly 50 miles west of Boston. The city is known as the “Heart of the Commonwealth” due to its location between Boston and Springfield.
“[It’s] close to Boston and has a growing healthcare and biotech industry, which makes it attractive for both buyers and renters,” Flanders said.
Incorporated as a town in 1722, Worchester is rich in history. The city has a population of just over 200,000, according to the Census Bureau.
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