Rochester

NYGreater Rochester Area

Real Estate Market Analysis

Q3 2025 Report
$220,798 (June 2025)
Median Home Price
210,000 (city); 1.1 million (metro area)
Population
$62,000 (metro area, 2024 estimate)
Median Income
Rochester City School District: below NYS average; suburban districts (Pittsford, Brighton, Penfield) rated highly
School District Rating

Market Overview

Property Values

$220,798 (June 2025)
Median Home Price
$151 (June 2025)
Price per Sq Ft
+9.2% (June 2024–June 2025)
YoY Change

Market Performance

Days on Market7 days (median)
Market TypeSevere seller's market; homes sell for 7–13% above asking price, often with multiple offers
Months of SupplyExtremely low; inventory down 24% from Dec 2023

Sales Activity

Sales VolumeClosed sales down 4.5% YoY in Q1 2025 (1,018 sales in Monroe County)
Metro AreaGreater Rochester Area
Population210,000 (city); 1.1 million (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~3.6% (2025 estimate, stable)
Job Growth RateModest, steady (driven by healthcare, education, tech)
Median Household Income$62,000 (metro area, 2024 estimate)

Major Employers

  • University of Rochester/Strong Health
  • Rochester Regional Health
  • Xerox
  • Paychex
  • Wegmans Food Markets
  • Kodak

Demographics

210,000 (city); 1.1 million (metro area)
Population
39 years
Median Age
Stable to modest growth (0.2–0.5% annually)
Population Growth
34% bachelor's degree or higher (metro area)
Education Level

Family Composition

Mix of families, young professionals, and retirees; strong presence of first-time buyers

Key Industries

HealthcareEducationTechnologyManufacturingProfessional Services

Education

School District

Rochester City School District: below NYS average; suburban districts (Pittsford, Brighton, Penfield) rated highly
District Rating

Top Schools

  • Pittsford Sutherland High School
  • Brighton High School
  • Penfield High School

Higher Education

  • University of Rochester
  • Rochester Institute of Technology (RIT)
  • Nazareth University
  • St. John Fisher University

Infrastructure & Development

Major Projects

  • ROC the Riverway waterfront revitalization
  • Downtown Innovation Zone expansion

Transportation

  • RTS transit system upgrades
  • I-390/I-490 interchange improvements

Planned Developments

  • Mixed-use developments in downtown and East End
  • Affordable housing initiatives in city neighborhoods

Lifestyle & Amenities

Recreation

  • Erie Canalway Trail
  • Genesee Riverway Trail
  • Lake Ontario beaches

Dining & Entertainment

  • Park Avenue district
  • East End nightlife
  • Public Market

Cultural Attractions

  • George Eastman Museum
  • Strong National Museum of Play
  • Rochester Philharmonic Orchestra

Investment Analysis

Investment Opportunities

  • Strong appreciation (projected 3–5% in 2025)
  • High rental demand due to affordability and universities
  • Value-add opportunities in older housing stock

Growth Outlook

Positive, with continued price appreciation and demand outpacing supply

Market Risks

  • Affordability squeeze for buyers
  • Potential for overbidding and appraisal gaps
  • Slower sales volume due to inventory shortage

Rental Market

Robust; low vacancy, rising rents, strong demand from students and healthcare workers

Marketing Intelligence

Target Demographics

  • First-time buyers
  • Young professionals
  • Families relocating for jobs
  • Investors seeking rental properties

Marketing Channels

  • Zillow/Realtor.com
  • Social media (Facebook, Instagram)
  • Local real estate groups

Pricing Strategies

List slightly below market to drive competition and over-asking offers

Common Objections & Response Strategies

Objection: Homes are too expensive or sell too fast

Response Strategy:

Educate buyers on market realities, set realistic expectations, and encourage pre-approval and flexible terms.

Objection: Appraisal gaps due to overbidding

Response Strategy:

Prepare buyers for appraisal contingencies and discuss gap coverage options.

Objection: Limited inventory and lack of options

Response Strategy:

Expand search criteria, consider off-market or coming-soon listings, and leverage agent networks.

Professional Recommendations

1

Educate clients on market realities and set expectations early.

2

Encourage buyers to get pre-approved and be ready to act fast.

3

Advise sellers to price strategically and prepare for multiple offers.

4

Leverage professional marketing and staging to maximize exposure.

5

Network with other agents for off-market opportunities.

6

Monitor appraisal risks and prepare clients for gap coverage discussions.

Competitive Analysis

Comparable Markets

  • Buffalo, NY
  • Syracuse, NY
  • Cleveland, OH

Market Positioning

Affordable alternative to larger metros with strong quality of life

Competitive Advantages

  • Lower median prices than national average
  • Strong local job market
  • Stable appreciation and low foreclosure rates

Price Comparison

Rochester median price ($220K) is lower than Buffalo ($245K) and Syracuse ($230K), but with faster YoY appreciation

Investment Metrics

6–7% (multi-family, 2025)
Cap Rates
5–6% gross annual yield
Rental Yields
~13–15 (favorable for investors)
Price-to-Rent
Positive cash flow possible with strategic property selection, especially in multi-family
Cash Flow
3–5% projected for 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Face intense competition and must act quickly; pre-approval and flexible terms are essential.

Move-Up Buyers

Can leverage equity gains but may face limited options and competition for larger homes.

Downsizers

Benefit from high sale prices but may struggle to find suitable smaller homes.

Investors

Strong rental demand and appreciation, but must navigate bidding wars and rising prices.

Relocators

Attracted by affordability and job market; need guidance on neighborhoods and schools.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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