Attention Investors. It's Time To Check Out The Syrac US E Market

[James Lucenti]

Micron Technology's decision to build a massive 1,400-acre semiconductor manufacturing plant in Clay, NY, a suburb of Syracuse, is poised to have a transformative effect on the local housing market. This project, known as the Megafab factory, is expected to create over 50,000 job opportunities and contribute nearly $10 billion to New York’s real GDP over its first 31 years. With 9,000 of these positions offering salaries exceeding $100,000 annually, the influx of employees and their families is projected to drive up demand for housing significantly. Currently, Syracuse multi-family properties are yielding a 10 cap rate, indicating a strong investment opportunity, while in Binghamton, large multi-family listings average at or below a 7 cap rate. The anticipated surge in population in Onondaga County, expected to grow by 25% over the next two decades, will likely escalate property values and rental prices. The construction of 12,300 new housing units, including 5,300 by the end of 2024, highlights the growing demand, with a notable focus on multi-family units. Syracuse is leading in this trend, with 6,000 multi-family units under construction. Meanwhile, Clay is set to see 1,350 new single-family homes, reinforcing its role in meeting the rising demand. The overall real estate market in Onondaga County appears robust, with increasing property values and a preference for multi-family housing. Additionally, the expansion of supporting industries, such as retail and hospitality, further bolsters the region's real estate prospects. 

[Stephanie Jacobson]

Quote from @James Lucenti:

Micron Technology's decision to build a massive 1,400-acre semiconductor manufacturing plant in Clay, NY, a suburb of Syracuse, is poised to have a transformative effect on the local housing market. This project, known as the Megafab factory, is expected to create over 50,000 job opportunities and contribute nearly $10 billion to New York’s real GDP over its first 31 years. With 9,000 of these positions offering salaries exceeding $100,000 annually, the influx of employees and their families is projected to drive up demand for housing significantly. Currently, Syracuse multi-family properties are yielding a 10 cap rate, indicating a strong investment opportunity, while in Binghamton, large multi-family listings average at or below a 7 cap rate. The anticipated surge in population in Onondaga County, expected to grow by 25% over the next two decades, will likely escalate property values and rental prices. The construction of 12,300 new housing units, including 5,300 by the end of 2024, highlights the growing demand, with a notable focus on multi-family units. Syracuse is leading in this trend, with 6,000 multi-family units under construction. Meanwhile, Clay is set to see 1,350 new single-family homes, reinforcing its role in meeting the rising demand. The overall real estate market in Onondaga County appears robust, with increasing property values and a preference for multi-family housing. Additionally, the expansion of supporting industries, such as retail and hospitality, further bolsters the region's real estate prospects. 

I hate to rain on this parade but I haven’t seen a property trade at a 10-cap in Syracuse in the last twelve months. In fact, across the board, out of town investors are buying at *negative returns* which is making it absolutely impossible for savvy, educated investors to even get their foots in the door. I have one buyer willing to purchase at a 5-cap who’s been outbid eleven times in a row. Everyone is gambling, and I keep advising my clients to please not compete with that level of moronic. 

Maybe I should amend that- there might be properties trading over a 5-cap, but most likely in the southwest quadrant of the city where I would never show a property alone.

 In Syracuse, the $800k+ price range is experiencing slightly less competition- I had a large complex just close at a 7-cap. Best I’ve seen all year. 

Anyway. Careful with advising buyers in that area, it’s tough out there!