Why are more investors flocking to the Northeast?

Question

Investing in Connecticut and Massachusetts where real estate prices aren't declining and property sells quickly makes it very ideal for out of state investors. It seems as if only New York investments have picked up on this reality

Lydia Winn · Answer

Totally fair that CT/MA/NE generally (especially NYC-adjacent areas) aren’t always ideal for high cap rate or quick-cash-flow investors. It’s usually a lower-risk, lower-reward play—especially early on.

In the case of the tri-state area, you're buying it because you're owning a piece of real estate in arguably the most dominant and resilient market in the U.S., and one of the most valuable globally. That has its own kind of upside, even if it’s not immediate.

Bill B. · Answer

Is the title of your post to be why AREN’T more people investing there or is it truly why are they?

I’ll tell you why I’m not…

Weather

Property taxes

Income taxes

Insurance

I have no competitive advantage

If you live in a worse market. (Worse weather, with higher taxes and insurance) And you’ve lived there, know someone who lives there, or are willing to move there, then maybe? But you’d still be purposely giving up on better markets you could have chosen instead.

Forget everyone declaring anything between positive and negative 3% price changes. There is ZERO chance you could tell me within 3% what your house is worth today or 5+% what it was worth a year ago. (You can give comps, or a listing price, not even a guess what the after repairs/concessions best offer net is.)

And if you plan to hold for a few years. Paying 1% higher property taxes, double insurance costs, giving 5-10% to the state in income taxes will affect you more than that price change. Good luck and unless you think prices will be lower in 5 years, get started.