Authors Jaison R. Abel and Richard Deitz assess the performance of upstate New York’s housing markets during the most recent residential real estate cycle. They find that the region’s housing markets have largely been insulated from the boom-and-bust volatility experienced in the United States.
The authors explain that during the nation’s housing boom of 2000-06, home prices in Binghamton, Buffalo, Elmira, Rochester, Syracuse and Utica did not appreciate as rapidly as the national average, although prices in Albany, Glens Falls and Ithaca outpaced it. Since then, home prices in every upstate metro area have risen faster, or fallen more slowly, than the national average. Notably, Buffalo, Rochester and Syracuse all ranked in the top 10 percent of metro areas in terms of home price appreciation in 2009, with Buffalo ranking sixth overall. Abel and Deitz observe that the region’s relatively low incidence of nonprime mortgages and the better performance of these loans contributed to this stability.
Jaison R. Abel is an economist and Richard Deitz a research officer in the Microeconomic and Regional Studies Function of the Federal Reserve Bank of New York.