03.10.2025 PropStream
Disclaimer: PropStream does not offer investing advice or make profit promises. This article is for educational purposes only. We recommend consulting financial professionals and/or doing your due diligence before investing or working in Buffalo, NY real estate.
|
Key Takeaways:
|
In January, Buffalo, NY, was named the hottest housing market market in 2025 based on its forecasted home appreciation, recent housing market velocity, and projected changes in the labor market, home construction activity, and number of homeowner households.
As a real estate professional, these trends may open new opportunities for you or your clients to secure favorable real estate deals. Read on to learn the current state of the market, where it’s likely headed, and the top reasons to invest in Buffalo, NY, real estate.
Table of Contents |
Buffalo, NY Housing Market Snapshot
Compared to the rest of the U.S., homes in the Buffalo-Cheektowaga, NY, metro area are considered very affordable. In February 2025, the median home listing price was just $249,974, while the national median was $412,000 (about 65% higher).
Meanwhile, Buffalo’s median home price is down by 0.46% from the same time a year ago but is likely to increase as the spring homebuying season picks up. As a result, buyers who move fast may be able to “buy the dip” before home prices rise again.
Furthermore, Buffalo's home inventory is increasing. In February, the number of active listings on any given day of the month reached 895, up over 25% from last year. At the same time, the median days on market (the number of days a property is listed for sale) was 79, up nearly 18% from a year before. This suggests that buyers may face less competition in the near term.
In other words, the Buffalo, NY, real estate market is currently moderating as home price growth slows and listings stay on the market longer, giving buyers more negotiation power.
Market Forecast for Buffalo, NY Real Estate
That said, Buffalo’s housing market may not stay balanced for long.
According to a recent report, Buffalo is poised to see a large increase in jobs, raising competition for housing and driving up prices unless builders can match the additional demand. Across the nation’s 50 largest metros, Buffalo has the most new jobs per new home permitted.
Meanwhile, demand for homes remains high among two of America’s largest generations: baby boomers (those born between 1946 and 1964) and millennials (those born between 1981 and 1996), with the latter now entering their prime homebuying years. This may put more upward pressure on Buffalo home prices for the foreseeable future.
It’s also no secret that elevated mortgage rates have kept many homebuyers on the sidelines. Over the last year, the average 30-year fixed mortgage rate has largely stayed in the 6-7% range, and it’s unclear whether 2025 will bring much rate relief. However, if rates fall, this may push home prices up even higher as more buyers enter the market due to the lower cost of financing.
By many accounts, the Buffalo housing market is poised for growth, potentially making now a great time to claim your slice of the city’s real estate pie.
6 Reasons to Work or Invest In Buffalo, NY Real Estate
If you’re still considering Buffalo, NY, real estate, here are some of the top reasons to consider working or investing here:
- Population growth: Though the Buffalo metro population declined slightly from 2021 to 2023, it’s been growing since, reaching over 1.16 million in 2024. As residents in the area continue to increase, housing demand and prices will likely follow suit.
- Strong economy: Part of what attracts residents to Buffalo is its strong economy. In 2023, the metro had a gross domestic product (GDP) of $90.72 billion, up 7.8% from the prior year. Meanwhile, the unemployment rate in December 2024 (the latest data available) was 4.0%, below the national average of 4.1%. Some of the metro’s major industries include manufacturing, healthcare, finance, leisure, and hospitality.
- Strategic trade location: Buffalo’s close proximity to the Canada-American border makes it a strategic trade location. This encourages more jobs, bolstering the local economy and driving housing demand.
- Educational opportunities: Buffalo is home to three state universities (Buffalo State University, Erie Community College, and the University at Buffalo) and many private colleges. Together, they attract thousands of students each year, making Buffalo a good opportunity for student housing investing.
- Tourist attractions: The Buffalo area has many tourist attractions, including Niagara Falls, the Albright-Knox Art Gallery, and Frank Lloyd Wright’s Darwin D. Martin House. In 2023, tourist spending jumped by 11.2% to $2.4 billion. This includes $455 million spent on lodging, suggesting lots of potential for short-term rental (STR) investments.
- Major sports teams: Major sports teams are another big attraction to Buffalo, NY. The city is home to the NFL’s Bills, NHL’s Sabres, NLL’s Bandits, Beauts women’s pro hockey, the Queen City Roller Girls, and AAA baseball Bisons—all of which bring in fans year-round.
Find Your Next Buffalo, NY Property with PropStream
Whether you’re an investor looking for your next property or a real estate professional helping a client find theirs, there’s one way to get quality leads fast: PropStream it!
Our database of over 160 million properties nationwide (including in Buffalo) and 165+ search filters make it easy to narrow your search quickly. Plus, our AI-driven platform can help you find hidden opportunities and motivated sellers you couldn’t find otherwise.
Notes on sources:
- Buffalo, NY housing market data taken from Realtor.com® Economic Research
