Buffalo Investment Property for Sale - 2024 Rental Home Appreciation

State: New York


The Buffalo real estate market is strong and competitive. Why? It’s a very affordable market with a lot of housing demand driving property values up. This has created a lot of competition that keeps real estate agents and brokerage services busy.

Real estate investors who want to get in on New York’s housing market should consider a rental property in Buffalo. It’s an affordable way to enter the market. It presents a lot of potential to earn a good return on investment.

Buffalo's Attractive Housing Market

Buffalo is in Western New York (WNY) on the shores of Lake Erie, about 370 miles northwest of New York City. It’s also not too far from Cleveland, OH (189 miles) and Detroit, MI (255 miles). Buffalo recently went through a significant transformation and has become a cultural hotspot.

Real estate investors can find nearly every property type in Buffalo’s homes for sale. They include nearly every type of multi-family home, single-family home, and unit property. Whatever you’re looking for, Buffalo has it.

The Buffalo area is home to some of the best suburbs for real estate investors to consider. They include Amherst, Cattaraugus, Cheektowaga, Niagara Falls, and Williamsville.

  • Amherst: Amherst is located 10 miles north of Buffalo along NY-33, east of Tonawanda. It’s home to Daemen University and the University at Buffalo Stadium. The median listing price in Amherst is $169/sqft, and the median sales price is $295,000. The median rent is $1,600/month.
  • Cattaraugus: Cattaraugus is located 52 miles south of Buffalo along US-219. It’s a small, affordable village with many investment opportunities. The median listing price in Cattaraugus is $79/sqft, and the median sales price is $174,450. The median rent is $1,500/month.
  • Cheektowaga: Cheektowaga is located 9 miles northeast of Buffalo along I-90. It’s a charming town that has a large Polish-American community. The median listing price in Cheektowaga is $140/sqft, and the median sales price is $180,000. The median rent is $1,250/month.
  • Niagara Falls: Niagara Falls is located 20 miles north of Buffalo along I-190. It’s home to Niagara Falls, one of the most famous waterfalls in the world, and a great place to invest in short-term rentals. The median listing price in Niagara Falls is $98/sqft, and the median sales price is $129,900. The median rent is $1,150/month.
  • Williamsville: Williamsville is located 14 miles northeast of Buffalo along I-90. It’s known for its rich history and village charm. The median listing price in Williamsville is $177/sqft, and the median sales price is $339,900. The median rent is $1,900/month.

Rental Home Appreciation in Buffalo

Buffalo is an affordable housing market with a very strong rental market.

According to Realtor, the median listing price in Buffalo is $133 per square foot with a median sale price of $174,900. Zillow’s Home Value Index reports a 15.9% change since last year. The median rent in Buffalo is $1,250 per month.

Buffalo has a solid rental market that generates a lot of demand for rental properties. Half (50%) of households in Buffalo are occupied by renters, and the city has a vacancy rate of around 6%.

Buffalo presents many opportunities for real estate investors and property management companies to increase their cash flow through rental income.

Economic Growth in Buffalo

Buffalo is the second largest city in New York. It’s the state’s capital and seat of Erie County.

Buffalo’s primary industries are government, healthcare, education, and financial services. The largest employers are the State of New York, the Federal Executive Board, Kaleida Health, and M&T Bank. Buffalo is also home to 9 colleges, including the University at Buffalo and SUNY Buffalo State College. These employers provide stability for the city’s economy. In fact, the unemployment rate in Buffalo is just 3.5%.

The Buffalo real estate market offers real estate investors affordability, demand, and a stable economy. It presents a tremendous opportunity for any interested in entering Upstate New York’s booming housing market.

Want to invest in a Buffalo rental property but don’t want to deal with lenders? Sign up with Arrived to discover how we make real estate investment easy and affordable.

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