By Deborah Jeanne Sergeant
The lack of affordable housing is a trend that continues in Central New York.
Faye Beckwith, co-owner of Freedom Real Estate in Hannibal, said that with rental rates running high, people want to buy. However, residential real estate is scarce as the inventory is still low and building projects take time to launch and complete.
“I handled a small subdivision in our community, and it took a few years,” Beckwith said. “Every lot has been sold. The second to the last lot to be built on it sold for over $400,000. That’s a lot.”
She’s seeing new construction pick up in areas such as Baldwinsville and Liverpool. Some developers in those areas have started construction on larger-scale projects.
“We’re seeing building and home improvement projects going on,” Beckwith added. “New construction, I think, will pick up in 2025. There are signs as there are more projects going on.”
As to whether the “Micron effect” will mean more new homes in the area, she feels unsure.
The residential real estate market has been turbulent enough in recent years that projections can be challenging to make with any degree of accuracy.
“It’s very, very hard to know,” Beckwith said. “There’s a lot of talk that Micron is going to boost the residential market with construction of many new homes, but I have my doubts. I heard about a developer who’s buying one acre of land for $1 million, which is absurd. It’s all over the board. It’s not like it used to be, such as with a three-bedroom, two-bath home you’d know how long it would take to build and what it would sell for. Now, no one can tell anymore. But we can give advice to clients and give them information.”
The high cost of housing may be why so few homes are on the market as those who own them feel loathe to sell because they’ll have to buy another home to live in. Sometimes, homes stay on the market longer than they should because of sellers’ hopes of a big sale.
“We may get a multiple offer situation, but some places are on the market a little longer,” Beckwith said. “Also, we’re seeing through the multiple listings price adjustments where sellers are overly optimistic and have to make a price change to get the reaction they want from the buying public.”
A low inventory market is where new housing can help loosen up the market.
“There is such a lack of inventory in today’s market that new housing available would be very positive for the demand for housing and assist in stabilizing housing values,” said William Galloway, broker and owner of Century 21 Galloway Realty in Oswego.
Newcomers to the area could find affordable homes and those who want to downsize or move for other reasons could feel freer to do so.
Although it seems a no-brainer to develop residential areas in CNY, builders face some daunting obstacles to new construction.
“There are a few projects in the works for new housing,” Galloway said. “The focus is on the city of Oswego or some state funding to help assist new developments with infrastructure so new housing developments can form. There is a large demand for new construction, but we are lacking the building lots at present time.
“The Old City Hall project will be opening up some new housing as well as a few other projects that are in early planning stages.”
