Buffalo Rent Prices Increase in Light of Population Shift
The positive population shift we identified in our May newsletter is starting to materialise. Young professionals and graduates have been eyeing the job growth that was kick-started by the Buffalo Niagara Medical Campus and have thus started moving from the wider metro area to Buffalo.
The hiring boom started with the 13,000 jobs created over the last year for the construction of SolarCity, HarborCenter and the Medical Campus (roughly 25% of new jobs) and in the professional services, leisure and financial services sectors.
This is the strongest job growth in 15 years and it will only continue once the new facilities are fully operational. The surprising news lies in the property market shift.
The Western New York area has seen a rent price increase of nearly 7% over the last year and a 14.1% total increase over the last three years.
Alan Bedenko from “The Public” agrees in his article that growth data is easily produced and cosmeticized. But an always honest source of information can be found in the employment data.
So what does this mean for the real estate investor? In the face of a rapid increase in demand, house prices and rents will soon go up. Supply will have to play catch-up. And for the moment, housing supply growth is only half of what Mayor Byron Brown announced to be necessary.