For many New Yorkers, buying a home between 2018 and 2023 meant facing rising prices, limited inventory, and rapidly changing conditions. Budget-conscious households across the state—from New York City boroughs to smaller upstate towns—responded by shifting their purchasing choices and exploring more affordable locations and home types. Rental market dynamics, income-to-price affordability, and first-time homebuyer assistance programs all shaped the decisions of these households, marking clear differences from earlier years.

Home Prices Are Up and Inventory Is Down

New York’s home prices climbed significantly from 2018 to 2023, far outpacing income growth. The median home value in the state was around $403,000 as of the early 2020s. By 2023, the median sales price for New York homes was about $382,500, roughly 40% higher than around 2018.

The COVID-19 pandemic housing boom in 2020–2021 drove prices up sharply – the statewide median jumped nearly 20% in just one year (2021). Even as sales volume slowed in 2022–2023, prices stayed high or continued rising due to limited supply. In New York City, the median sale price in 2023 was $764,000, only a slight 2% dip from the 2022 peak.

One big reason for persistent high prices is record-low inventory. A balanced housing market typically has about a 6-month supply of homes for sale, but New York’s supply fell well below that after 2020. By 2021, there was only around a 3.2-month supply of homes on the market, indicating a tight seller’s market. Listing inventory hit the lowest levels in decades in 2023, with statewide active listings down to roughly 22,500 homes.

Meanwhile, mortgage interest rates rose dramatically. In 2018, a 30-year fixed mortgage was around 4%, and in 2020–2021 rates hit historic lows near 3%. However, by 2023 rates had climbed to about 6–7%, the highest in roughly 20 years. These higher rates significantly increased monthly mortgage payments, worsening affordability.

Homeownership Rates and Affordability

Homeownership rates in New York did inch up during 2018–2023, but remain low. New York State historically has one of the lowest homeownership rates in the U.S., mainly because so many people rent in New York City. The homeownership rate hit a low of about 50% in 2018, after the last recession. By 2022 it had grown to 53.6%, and has hovered in the 53–54% range through 2023. This is still far below the national homeownership rate (~66%).

New York City’s rate is even lower – only around 31% in the city – while most counties outside the city have higher ownership rates.

Affordability metrics have worsened. From 2019 to 2024, New York’s home values increased about 7.3% per year, while wages grew only ~3.2% per year. By one index, New York’s housing affordability index was 363 in 2024 (with 100 meaning affordable), indicating that the typical home is out of reach unless a family earns over three times the median income.

What Types of Homes Are People Buying?

New York single family home — Shutterstock

For budget-conscious buyers, the type of property matters for affordability. Single-family homes remain the most common purchase for homeowners statewide. About 76.6% of New York owner-occupied homes are single-unit houses (either detached houses or townhouses). From 2018–2023, demand for single-family houses was especially strong, since the pandemic made having more space and a yard attractive.

In New York City and some downstate areas, many households buy condominiums or cooperatives (co-ops) instead. Statewide, about 10.7% of homeowners live in apartment buildings with 10+ units. Co-ops are especially common in NYC – they often have lower sticker prices than condos, but come with coop board approvals and maintenance fees.

Two- to four-family homes (duplexes, triplexes, etc.) are another property type some budget-minded buyers choose. These make up roughly 9% of owner-occupied homes in NY. From 2018 to 2023, with high prices and tight budgets, some first-time buyers embraced this strategy of “house hacking.” Having a tenant’s rent to subsidize the home cost made homeownership possible for certain moderate-income buyers who might otherwise be priced out.

Manufactured homes (mobile homes) are a smaller part of the market but are more prevalent in some rural upstate areas. Only about 2.6% of New York homeowners live in mobile or other manufactured housing. These homes tend to be much cheaper but often are located in parks or on leased land.

Changing Buyer Needs

Upsizing New York single family home — Shutterstock

Upsizing and Remote Work

Between 2018 and 2023, New Yorkers’ housing needs and preferences evolved. Upsizing – moving to a larger home – was common for many young families and remote workers. During the pandemic, a wave of buyers sought to trade small city apartments for larger suburban or upstate houses with home offices and yards. This upsizing trend was fueled by the desire for more room and the affordability of low mortgage rates (in 2020–21) that suddenly made bigger homes feasible. Many millennial buyers in their 30s moved out of NYC to purchase their first homes in surrounding suburbs.

Downsizing and Aging in Place

Some homeowners have been downsizing, though this trend has nuances. From 2018–2023, Baby Boomers became a dominant force in the housing market, often with significant equity in their homes. Some older Boomers did downsize for retirement or relocate to cheaper areas. Boomers were the largest share of home sellers in recent years, and older seniors (age 79+) were most likely to have decreased the size of their home when they moved.

However, an interesting counter-trend is “aging in place.” High prices and a lack of alternative housing options meant many older New Yorkers stayed in their homes rather than downsizing. By 2022–2023, the phenomenon of “housing lock” set in – homeowners with 3% mortgages were reluctant to sell and face 7% rates on a new purchase. This reduced the volume of downsizing moves.

Rise of Multi-Generational Households

One notable trend has been the rise of multi-generational home purchases. By 2022, 14% of all U.S. home purchases were multi-generational, up from 11% in 2021 – the highest share on record. Data showed that 15% of first-time buyers and 14% of repeat buyers in 2022 bought multi-generational homes.

Why the surge? In New York, high housing costs pushed families to pool resources. Adult children who couldn’t afford a home on their own often teamed up with parents or extended family to buy a house large enough for everyone. Cost savings was a major factor, cited by 28% of first-time buyers in multi-gen purchases. By combining incomes, families could qualify for a mortgage and share expenses.

New York’s cultural diversity also plays a role – multi-generational living has long been common among some immigrant communities. The 2018–2023 period saw it enter the mainstream out of economic necessity. Realtors noted more buyers specifically seeking homes with extra units or basement apartments for extended family.

Regional Differences: NYC vs. Upstate

New York State’s housing trends can vary dramatically by region. The starkest contrast is between New York City (and its suburbs) and Upstate New York.

In New York City, housing is largely multi-family and extremely expensive. The vast majority of NYC residents rent (about 69% of households rent in the city), and those who buy often purchase condos or co-ops. The median sale price in NYC has been around $750,000–$800,000 in 2022–2023. For example, the median in 2023 was $764K. These prices are far above what most middle-income families can afford.

Affordability in NYC worsened post-pandemic: median asking rents hit a record ~$3,500/month in 2023 (which would require a $140K income to afford without burden). During 2020–2021, thousands of New Yorkers left the city in search of more space or lower costs. This net out-migration lowered demand in NYC temporarily. New York State had a net domestic migration loss of over 216,000 people in 2023. Some moved to Sunbelt states, but others relocated within New York to upstate or outer suburbs.

Upstate New York (and suburban counties) saw a surge in demand from both locals and relocating city dwellers. Smaller cities and towns like Buffalo, Rochester, Syracuse, Albany, as well as the Hudson Valley and Catskills region, experienced a mini housing boom. These areas historically had much lower prices. For instance, in Buffalo the median home price was around $180,000–$240,000 in the early 2020s – a fraction of NYC prices.

The result: home prices upstate and in the Hudson Valley climbed dramatically from 2019 to 2023. In the Hudson Valley counties just north of NYC, median sale prices jumped 40%–100% or more. For example, Westchester County’s median home price rose about 38% from 2019 into late 2023. More dramatically, Sullivan County (Catskills area) saw median prices skyrocket ~123% – from about $145,000 in 2019 to $324,000 in 2024.

Even upstate metro areas saw growth: Rochester and Syracuse had strong seller’s markets, and Buffalo’s prices, while low, hit record highs. By 2023, Buffalo’s median listing price around $240K was noted as very affordable compared to the U.S. median, which was over $400K.

The regional pattern is clear:

Downstate (NYC, Long Island, lower Hudson Valley) – High prices, low inventory, many buyers but also many priced-out households. Co-ops/condos prevalent in the city; single-family homes in suburbs but at high cost. Homeownership rates lower in NYC (30%) and rental burdens very high.
Upstate (north of metro NYC) – Lower prices overall, though rising fast post-2020. Better affordability for moderate incomes; median prices in many upstate cities were $200–300K or less. Homeownership rates higher (often 60-70% in many upstate counties). More single-family homes available.

Suburbs vs. cities: Even within the state, suburbs generally saw more homebuying by moderate-income families than the big cities. For example, a household making $150K might find it impossible to buy in Manhattan, but could comfortably buy a house in a suburb of Albany or Syracuse. The pandemic basically supercharged this existing pattern of migration from high-cost city centers to relatively cheaper peripheries.

Housing Affordability and Cost Burdens

New York City houses to rent — Shutterstock

Despite some regional differences, a common theme from 2018 through 2023 is that housing affordability is a serious challenge across New York. Both homeowners and renters have been burdened by high costs relative to their incomes.

Price-to-income ratios grew throughout this period. New York State’s median family income for homeowners is around $115,000, yet the median home price (approximately $400k) is about 3.5 times that income. In New York City, the gap is wider: a typical home ($750k+) is over 10 times the city’s median household income (~$70k).

By 2022, about 28% of New York homeowners were cost-burdened (spending over 30% of income on housing). For renters, the situation is even tougher.

Rental cost burdens in New York are among the worst in the nation. In 2022, about 52.4% of New York renters paid more than 30% of income on rent. Nearly one in five renter households spent more than 50% of their income on rent (severely burdened). Statewide, almost 3 million households (including owners and renters) were paying over 30% on housing by 2022.

Rents rose during 2018–2023, especially after an initial dip in 2020. In New York City, the median gross rent went from about $1,500 in 2019 to $1,680 in 2022, roughly a 12% increase in three years. Market rents for new leases spiked even more – by mid-2023, the asking rent on available NYC apartments was around $3,300 on average.

Because so many households are renting (over 3.5 million renter households in NY), these rent burdens impact the ability to save for homeownership. High rent makes it hard to save for a down payment. A 10% down payment on a $400,000 home is $40,000 – which is more than half of the median annual income of NY renters.

Homeownership rates among younger adults have thus been depressed. The typical first-time buyer age climbed to 36-38 by the early 2020s, as millennials delayed buying. In 2022, first-time buyers made up only 24% of home sales – a record low share.

Programs and Assistance for Homebuyers

Given the affordability challenges, various government programs and incentives have been crucial in helping moderate-income households buy homes in New York:

State of New York Mortgage Agency (SONYMA)

SONYMA offers special mortgage programs for first-time buyers with low-to-moderate income. These include competitive fixed rates and down payment assistance loans. For example, SONYMA’s Down Payment Assistance Loan (DPAL) can provide up to ~$15,000 or more (sometimes 3% of the purchase price) as a zero-interest second loan that is forgiven after 10 years.

NYC HomeFirst Down Payment Assistance

New York City operates the HomeFirst program, which saw a major expansion by 2023. This program provides up to $100,000 for down payment or closing costs to qualified first-time buyers in the five boroughs. That amount was increased (from $40k prior) to better match NYC’s high prices. HomeFirst is targeted at households within certain income limits (initially 80% of Area Median Income, later expanded to 120% AMI). This program is a forgivable loan – if the buyer stays in the home for 10-15 years, the loan is forgiven.

Federal Programs

The FHA (Federal Housing Administration) loan program continued to be a pillar for first-time buyers. FHA loans allow as little as 3.5% down and more flexible credit. The VA loan program similarly helped veteran buyers with zero-down options.

The Biden Administration in 2021–2023 also announced initiatives to help buyers and reduce discrimination. For instance, $100 million in new federal funding for states to support sustainable homeownership was rolled out.

Local Programs and Grants

Beyond NYC’s HomeFirst, various counties and municipalities in New York have smaller-scale programs. For example, some upstate cities offer down payment grants (often funded by Community Development Block Grants). Nonprofits like Neighborhood Housing Services (NHS) and local housing councils run first-time buyer workshops and sometimes provide closing cost assistance.

Comparison to 2008–2017 Trends

The housing landscape changed significantly between the post-recession 2010s and the late 2010s/early 2020s boom:

Home Prices

In the 2008–2012 period, home prices in New York fell or stagnated due to the Great Recession and housing crash. From 2013 to 2017, prices gradually recovered at a modest pace. Overall, 2008–2017 was a period of relatively slow growth in home prices.

Contrast that with 2018–2023, where after a couple steady years, we saw rapid appreciation in 2020–2021 (the fastest since the mid-2000s boom). In some Hudson Valley counties, the price gains from 2019–2023 equaled or exceeded the total gains of the entire prior decade.

Homeownership and Demand

After the 2008 crash, homeownership rates dropped. New York’s homeownership rate went from ~56% in 2005 to around 50% by 2015. 2008–2017 saw subdued demand from first-time buyers – millennials were in their 20s (renting or delaying purchase), and the trauma of the crash made banks and buyers cautious.

By contrast, 2018–2023 saw a resurgence of demand (at least until interest rates spiked). Millennials entered their 30s and started buying in large numbers. The pandemic added an unexpected demand surge (people seeking more space, etc.), which was not a factor in the earlier period.

Inventory and Construction

In the aftermath of 2008, there was actually plenty of housing inventory (too much in some areas). Foreclosed homes and new constructions sat unsold in the late 2000s. Fast forward to 2018–2023, housing construction never caught up. New York added only about 5.7% to its housing units between 2012 and 2022 – far behind population growth in some regions.

By 2023, listings were at record lows. So unlike 2008 when there was an oversupply of homes for sale, in 2023 the pendulum swung to extreme undersupply. The earlier period favored buyers (lots of choice, even distress sales); the later period heavily favored sellers (buyers competing for scarce listings).

Interest Rates and Financing

The 2018–2023 period had historically low interest rates for much of it, until the sharp rise in 2022. In 2008, interest rates were around 6-7%, then the Fed slashed rates to near 0% post-crisis.

In 2018, rates ticked up above 4% briefly, but then fell under 3% in 2020 for the first time ever. These ultra-low rates in 2020–21 encouraged many to buy or refinance. But come 2022–2023, rates jumped back to ~7%, similar to 2008 levels. In summary: 2008–2017 buyers had the benefit of gradually lowering interest rates and stable prices; 2021 buyers had rock-bottom rates but rising prices; 2023 buyers had high prices and high rates.

Government Intervention

After the 2008 crash, the federal government took steps like the first-time homebuyer tax credit (2009–2010) which helped spur some sales. During 2018–2023, the government’s role was different – it wasn’t about rescuing a crash, but about easing an affordability crisis.

Pandemic-era policies included eviction moratoriums and mortgage forbearance. By 2022, as those protections ended, policymakers turned to longer-term fixes: proposing zoning changes to allow more housing, expanding buyer assistance, and debating upzoning and basement apartment legalization in NYC.

While 2008–2017 discussions centered on recovering from foreclosure and ensuring banks lend safely, 2018–2023 discussions center on producing more affordable housing and closing racial homeownership gaps.

Conclusion

From 2018 through 2023, New York State’s housing trends have been a rollercoaster for families earning under $250k. The dream of homeownership became both richly rewarding and increasingly elusive at the same time. Those who managed to buy homes saw substantial equity gains, while many households found themselves priced out, rent-burdened, or pushed to creative solutions like multi-generational living.

Compared to the 2008–2017 period, the recent market has flipped the script: instead of recovering from a crash, policymakers now grapple with how to cool an overheated market and broaden access. The data shows that housing cost burdens are at crisis levels for a large share of New Yorkers, and without intervention, homeownership will remain out of reach for many middle-class families.

For budget-conscious New Yorkers, the path to owning a home in 2023 might mean adjusting expectations – perhaps buying a smaller home, in a different part of the state, or later in life than previous generations. Renting will continue to be the reality for many, but the hope is that with sustained income growth, moderating interest rates, and more housing development, the next five years could see a healthier balance.

What Properties Budget-Conscious New Yorkers Are Buying, and Where

Home Prices Are Up and Inventory Is Down

Homeownership Rates and Affordability

What Types of Homes Are People Buying?