Top 5 Residential Real Estate Investment Markets in New York

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By Trent Seigfried Updated June 6, 2024
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Edited by Michael Yessis

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Walworth is home to the best residential real estate investment market in New York.

The 14568 zip code in Walworth presents the greatest opportunity for investors among the 2,828 individual real estate markets in New York we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 New York residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Walworth1002.562.75%
2Peru1002.147.61%
3Dunkirk99.92.474.34%
4Rochester98.82.763.01%
5Syracuse982.759.02%
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1. Walworth

We've identified the 14568 zip code in Walworth as New York's best real estate investment market. Here's why.

πŸ”Ž Key data about Walworth

Data pointValueRank in state (of 2,828 markets)
Zip code14568N/A
InvestScore 100Highest
Typical property value $248,338[1]186th lowest
Five-year appreciation 62.75%[2]56th highest
Household income $100,491[3]276th highest
Affordability ratio 2.538th most affordable
Five-year population growth 5.7%[4]161st highest
Unemployment rate 1.9%[5]20th lowest
Property taxes $5,021[6]266th lowest
Educational attainment 28.5%[7]494th highest
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Walworth (zip code 14568) is the best residential real estate investment market in New York. It has the 56th highest property value appreciation among markets we evaluated, with a 62.75% appreciation of the typical property over the last five years.

Walworth is the 38th most affordable market among the 2,828 New York markets we evaluated, with an affordability ratio of 2.5.

2. Peru

The 12972 zip code in Peru is New York's second-best residential real estate investment market.

πŸ”Ž Key data about Peru

Data pointValueRank in state (of 2,828 markets)
Zip code12972N/A
InvestScore 1002nd highest
Typical property value $244,230[8]180th lowest
Five-year appreciation 47.61%[9]268th highest
Household income $116,563[10]187th highest
Affordability ratio 2.19th most affordable
Five-year population growth 25.3%[11]7th highest
Unemployment rate 2.6%[12]49th lowest
Property taxes $4,051[13]161st lowest
Educational attainment 34.1%[14]398th highest
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The 12972 zip code in Peru features a typical property value of $244,230, the 180th lowest in the state.

Property values have appreciated 47.61% over the past five years, the 268th highest increase among evaluated markets in the state. Peru homes have an affordability ratio of 2.1, the 9th most affordable in the state.

3. Dunkirk

The 14048 zip code in Dunkirk comes in at No. 3 in our ranking of residential real estate investment markets in New York.

πŸ”Ž Key data about Dunkirk

Data pointValueRank in state (of 2,828 markets)
Zip code14048N/A
InvestScore 99.93rd highest
Typical property value $119,251[15]21st lowest
Five-year appreciation 74.34%[16]14th highest
Household income $49,708[17]651st highest
Affordability ratio 2.431st most affordable
Five-year population growth 3.9%[18]230th highest
Unemployment rate 3.9%[19]170th lowest
Property taxes $2,360[20]24th lowest
Educational attainment 18.7%[21]645th highest
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With a typical property value of $119,251, Dunkirk's 14048 zip code features the 21st lowest property values in the state.

Dunkirk homes have an affordability ratio of 2.4, the 31st most affordable among the markets we evaluated.

4. Rochester

The 14624 zip code in Rochester ranks No. 4 among New York's residential real estate investment markets.

πŸ”Ž Key data about Rochester

Data pointValueRank in state (of 2,828 markets)
Zip code14624N/A
InvestScore 98.84th highest
Typical property value $232,910[22]166th lowest
Five-year appreciation 63.01%[23]50th highest
Household income $85,773[24]50th highest
Affordability ratio 2.771st most affordable
Five-year population growth 7.6%[25]110th highest
Unemployment rate 3.5%[26]118th lowest
Property taxes $4,802[27]247th lowest
Educational attainment 33.8%[28]403rd highest
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Property values in Rochester's 14624 zip code have seen the 50th highest increase among evaluated markets in the state, with an appreciation of 63.01% over the past five years.

Rochester's affordability ratio of 2.7 makes it the 71st most affordable among the 2,828 markets we evaluated.

5. Syracuse

The 13219 zip code in Syracuse rounds out our top five residential real estate investment markets in New York.

πŸ”Ž Key data about Syracuse

Data pointValueRank in state (of 2,828 markets)
Zip code13219N/A
InvestScore 985th highest
Typical property value $218,227[29]148th lowest
Five-year appreciation 59.02%[30]111th highest
Household income $82,083[31]111th highest
Affordability ratio 2.761st most affordable
Five-year population growth 4.4%[32]202nd highest
Unemployment rate 2.6%[33]49th lowest
Property taxes $4,688[34]232nd lowest
Educational attainment 42.9%[35]264th highest
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Property values in Syracuse's 13219 zip code rose 59.02% over the last five years, ranking the city 111th highest among evaluated markets in New York.

Syracuse homes have an affordability ratio of 2.7, the 61st most affordable among the markets we evaluated.

How we rank residential real estate markets in New York

We evaluated 2,828 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in New York.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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