New York Rental Market Trends in 2026
When talking about the best rental markets in New York, the Big Apple may be the first place that comes to mind—but in this post, we’ll focus on five lesser-known, more affordable markets across New York State that rental investors should keep an eye on in 2026. Four of the five cities that we’ll cover ranked on our 2026 list of up-and-coming real estate markets, proof of the strength of their rental markets and their investment appeal in comparison with the rest of the U.S.
New York is the fourth-most populous state in the country, with approximately 20 million residents, one-third of whom live outside of the New York City metro area. While most companies located in the state have offices in Manhattan, big names like IBM, Mastercard, PepsiCo, and Wegmans are headquartered in other cities throughout the state.
Alongside the many positive factors that may pique real estate investors’ interest, there are three considerations that you may want to keep in mind when considering investing in New York State:
- Regulatory environment: Passed in 2019, the state’s Housing Stability and Tenant Protection Act dictates how landlords can operate rent-regulated units. Many of the cities on our list are also in the process of passing Good Cause Eviction Protections, which apply to market-rate units.
- High housing costs: New York is among the most expensive states in the country to live in, with relatively high taxes and a shortage of homes pushing prices even higher. However, the cities on our list are relatively inexpensive compared to pricier markets throughout the U.S.
- Declining population: Due to outmigration, low fertility rates, and an aging population, New York is losing residents, a trend that’s expected to continue in the coming years, including in many of the cities on our list.
If you’re a real estate investor or property manager looking to expand within New York State, this post will guide you through evaluating up-and-coming real estate markets for 2026. We’ll share rental market statistics for each city, including inventory growth, rent growth, vacancy rates, cap rates, and home value appreciation. We’ll also highlight economic and demographic trends in each market.
Top 5 Rental Markets in New York State for 2026
Without further ado, here are 5 New York State rental markets where our research indicates growth opportunities lie in 2026.
Market #1: Albany, NY
Albany, the capital of New York, anchors a metro area of 904,682 residents and serves as the administrative heart of the state. Its role as a government center provides a foundation of economic stability, while a diverse mix of industries—including healthcare, education, technology, and finance—adds resilience. Major employers such as Albany Medical Center, GlobalFoundries, and the University at Albany create steady job opportunities and attract professionals and students, helping to sustain the demand for housing.
Residents are drawn to Albany for its blend of urban convenience and natural beauty. The city’s location along the Hudson River offers scenic views and waterfront recreation, while its proximity to the Adirondacks and the Catskills provides easy access for hiking, skiing, and other outdoor activities. Albany also boasts a rich cultural scene, with historic architecture, museums, theaters, and annual festivals that celebrate art, music, and food.
In 2026, Albany ranks in position #26 on Buildium’s list of up-and-coming real estate markets. For rental investors, Albany offers a balanced market with steady demand from government and healthcare employees as well as students. The metro’s affordability relative to downstate markets, as well as the diversity of its economy, make it appealing for long-term investment. The city has also avoided oversupply, with healthy rent growth, vacancy rates, and cap rates beginning to draw investors’ attention. It is worth noting that Albany recently implemented Good Cause Eviction Protections, intended to safeguard tenants from steep rent hikes and arbitrary evictions.
Albany, New York Rental Market Statistics
- Rental Inventory (Q3-’25): 59,427
- Units Added Since Q3-’24: +45
- Asking Rent Growth Since Q3-’24: 3.2%
- Asking Rent (Q3-’25): $1,657
- Effective Rent (Q3-’25): $1,647
- Multifamily Vacancy Rate (Q3-’25): 4.4%
- Multifamily Cap Rate (Q3-’25): 7.7%
Source: National Association of Realtors
Albany, New York Housing Market Statistics
- Average Home Value: (Q4-’25): $313,140
- Home Value Appreciation Since Q3-’23: 4.4%
Source: Zillow
Albany, New York Economic Statistics
- Population Growth (2025): 1.0%
- GDP Growth (2023): 2.5%
- Job Growth (Q3-’25): 1.3%
Source: National Association of Realtors
Lists That Mention Albany, New York
- Best Real Estate Markets (WalletHub): #209
Market #2: Rochester, NY
Rochester, located in western New York, is a vibrant city with a metro area that’s home to 1,052,087 residents. The city is a hub for several major corporations, including Western Union, Kodak, Xerox, and Paychex, which contribute to a stable and diverse economy. Additionally, the presence of educational institutions like the University of Rochester and Rochester Institute of Technology drives a steady demand for rental properties. This demand is further supported by the city’s diverse job market, which includes sectors such as healthcare, technology, and manufacturing.
While winters in Rochester tend to be cold and snowy, the city offers a wealth of activities during the warmer months. Residents enjoy spending time at Lake Ontario, exploring its many parks, and attending frequent outdoor festivals.
Rochester ranked in position #28 on our 2026 list of up-and-coming real estate markets thanks to its strong cap rates, rent growth, vacancy rates, and property price appreciation over the last few years. Its affordability, combined with the city’s economic stability, make it an appealing market for rental investors and residents alike. As with the other cities on our list, however, it’s important to be aware that Rochester recently enacted Good Cause Eviction Protections.Â
Rochester, New York Rental Market Statistics
- Rental Inventory (Q3-’25): 59,602
- Units Added Since Q3-’24: +155
- Asking Rent Growth Since Q3-’24: 3.9%
- Asking Rent (Q3-’25): $1,519
- Effective Rent (Q3-’25): $1,510
- Multifamily Vacancy Rate (Q3-’25): 5.2%
- Multifamily Cap Rate (Q3-’25): 8.3%
Source: National Association of Realtors
Rochester, New York Housing Market Statistics
- Average Home Value (Q4-’25): $227,136
- Home Value Appreciation Since Q4-’24: 2.5%
Source: Zillow
Rochester, New York Economic Statistics
- Population Growth (2025): 0.5%
- GDP Growth (2023): 0.1%
- Job Growth (Q3-’25): 0.9%
Source: National Association of Realtors
Lists That Mention Rochester, New York
Best Real Estate Markets (WalletHub): #72
Market #3: Glens Falls, NY
By far the smallest New York real estate market on our list, Glens Falls has 125,427 residents living in its metro area. The city is located in eastern New York, less than an hour from the Vermont border. Its economy specializes in healthcare and medical device production, with Glens Falls Hospital, Hudson Health Network, Beckton Dickinson, and Medline/NAMIC representing some of the largest employers in the city. Other top employers outside of the medical sector include Finch Paper, Sagamore Resort, and Arrow Financial.
Known as the Gateway to the Adirondacks, and also located in proximity to Lake George, the city is full of recreational opportunities for its residents. It also boasts a number of historical landmarks, museums, galleries, performance venues, and annual festivals.
Glens Falls ranked in position #32 on our 2026 list of up-and-coming real estate markets. Though small in size, it showed attractive cap rates, tight occupancy, and relatively strong rent growth over the past year. It’s also more affordable than the U.S. overall for residents and investors alike. It’s worth noting that Glens Falls is phasing out unhosted short-term rentals in certain neighborhoods.
Glens Falls, New York Rental Market Statistics
- Rental Inventory (Q3-’25): 3,675
- Units Added Since Q3-’24: +98
- Asking Rent Growth Since Q3-’24: 2.1%
- Asking Rent (Q3-’25): $1,282
- Effective Rent (Q3-’25): $1,276
- Multifamily Vacancy Rate (Q3-’25): 2.0%
- Multifamily Cap Rate (Q3-’25): 7.9%
Source: National Association of Realtors
Glens Falls, New York Housing Market Statistics
- Average Home Value (Q3-’24): $259,796
- Home Value Appreciation Since Q3-’23: 2.5%
Source: Zillow
Glens Falls, New York Economic Statistics
- Population Growth (2025): -0.2%
- GDP Growth (2023): 1.9%
- Job Growth (Q3-’25): -1.5%
Source: National Association of Realtors
Lists That Mention Glens Falls, New York
- None—this is an under-the-radar pick
Market #4: Buffalo, NY
With 1,155,604 residents living in its metro area, Buffalo is the second-most populous city in the state of New York. It’s located in the western half of the state, close to Lake Erie as well as the Canadian border.
Buffalo’s economy transitioned away from steel production throughout the latter half of the twentieth century. The city now has a more diversified economy focused on healthcare, retail, logistics, education, and tourism (due to its location near Niagara Falls) as well as manufacturing. Education institutions located in the city, such as the University at Buffalo, Buffalo State University, and D’Youville University, contribute to the city’s dynamic environment.
Famous for its lake-effect snow and Buffalo chicken wings, the city also boasts the oldest urban parks system in the U.S. It’s a culturally vibrant city as well due to its museums, performing arts institutions, and festivals.
Buffalo ranked in position #51 on our 2026 list of up-and-coming real estate markets due to its moderately strong rent growth, vacancy rates, cap rates, and property price appreciation over the last few years. Its affordability relative to the rest of the U.S., as well as its economic stability, hold appeal with residents and investors alike. As with the other New York metros on our list, it’s important to be aware that Buffalo recently enacted Good Cause Eviction Protections.
Buffalo, New York Rental Market Statistics
- Rental Inventory (Q3-’25): 48,453
- Units Added Since Q3-’24: +92
- Asking Rent Growth Since Q3-’24: 2.5%
- Asking Rent (Q3-’25): $1,371
- Effective Rent (Q3-’25): $1,360
- Multifamily Vacancy Rate (Q3-’25): 6.2%
- Multifamily Cap Rate (Q3-’25): 7.3%
Source: National Association of Realtors
Buffalo, New York Housing Market Statistics
- Average Home Value (Q3-’24): $235,752
- Home Value Appreciation Since Q3-’23: 3.7%
Source: Zillow
Buffalo, New York Economic Statistics
- Population Growth (2025): 0.4%
- GDP Growth (2023): 2.8%
- Job Growth (Q3-’25): 1.4%
Source: National Association of Realtors
Lists That Mention Buffalo, New York
Market #5: Syracuse, NY
Syracuse, located in central New York State, is a college town with a metro area population of 652,956. The presence of Syracuse University, along with other educational institutions, drives steady demand for rental properties. Syracuse’s economy has made the transition from manufacturing to a more diverse mix of healthcare, education, and technology sectors. The city’s largest employers, including SUNY Upstate Medical University, Syracuse University, and St. Joseph’s Health, contribute to a stable and diverse economy.
While the Syracuse area has some of the snowiest winters in the country, it offers a wealth of activities during the warmer months, between Lake Ontario and the city’s parks. Syracuse’s strong culture of performing arts, including an annual jazz festival, a symphony orchestra, and an opera company, adds to its appeal.
Though Syracuse just missed qualifying for our list of up-and-coming real estate markets in 2026, its cap rates, rent growth, home value appreciation remain strong. Its relative affordability also makes it attractive to rental investors. As with the other New York metros in this post, it’s important to be aware that Syracuse recently passed Good Cause Eviction Protections.
Graphic: Syracuse, NY
Syracuse, New York Rental Market Statistics
- Rental Inventory (Q3-’25): 34,552
- Units Added Since Q3-’24: +340
- Asking Rent Growth Since Q3-’24: 3.6%
- Asking Rent (Q3-’25): $1,385
- Effective Rent (Q3-’25): $1,377
- Multifamily Vacancy Rate (Q3-’25): 6.2%
- Multifamily Cap Rate (Q3-’25): 8.3%
Source: National Association of Realtors
Syracuse, New York Housing Market Statistics
- Average Home Value (Q4-’25): $206,516
- Home Value Appreciation Since Q4-’24: 5.1%
Source: Zillow
Syracuse, New York Economic Statistics
- Population Growth (2025): 0.3%
- GDP Growth (2023): 0.8%
- Job Growth (Q3-’25): 2.2%
Source: National Association of Realtors
Lists That Mention Syracuse, New York
- None – this is an under-the-radar pick
How Do We Identify the Best Rental Markets in New York?
We use the following sources to help us ascertain the best rental markets in the U.S. across five different categories.
Industry Indicators
Measures of opportunity for rental property investors and property managers:
- Markets with the best overall real estate investment prospects, as measured by PwC and the Urban Land Institute
- Housing markets with emerging investment opportunities, as measured by the Wall Street Journal and Realtor.com
- Markets with a greater number of renters relative to homeowners, as measured by the National Association of Realtors
- Markets with a high rate of renter household formation, as measured by the National Association of Realtors
Housing Indicators
Measures of property prices and rent growth:
- Markets with the highest growth in asking rents, as measured by the National Association of Realtors
- Markets with the lowest rental property vacancy rate, as measured by the National Association of Realtors
- Markets with the highest rental property cap rates, as measured by the National Association of Realtors
- Markets with the most home value appreciation, as measured by Zillow
Economic and Job Market Indicators
Measures of employment growth:
- Markets with the lowest unemployment rates, as measured by the National Association of Realtors
- Markets with the most employment growth, as measured by the National Association of Realtors
- Markets with the most GDP growth, as measured by the National Association of Realtors
Demographic Indicators
Measures of population growth:
- Markets with the greatest population growth, as measured by the U.S. Census Bureau
- The best places to live, based on analyses of quality of life and desirability, as measured by U.S. News
Climate Indicators
Measures of climate vulnerability:
- Markets with the lowest risk of natural disasters and extreme conditions, as measured by the Federal Emergency Management Agency
60 Up-and-Coming Real Estate Markets in 2026
In Buildium’s annual Up-and-Coming Real Estate Markets list, we analyzed 175 metro areas across the U.S. to determine which cities show promise for rental investors and property managers in the year ahead. View the full list of emerging markets we’ve identified across the country.
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