Year-Over-Year Rent Price Analysis
The subject of today’s snapshot is for Downtown, Rochester, New York. Based on our analysis, Rochester’s year-over-year average rents increased across all bedroom types.
Our standard neighborhood analysis uses a 12-month “LookBack” to establish an average baseline rent. The results from the 12-month LookBack analysis are presented in the tables below for Downtown Rochester 1–2 bedroom rents from January 1, 2021 – January 1, 2022:
As the table shows, 1BR units increased by 3% from last year or $43 more, and the 2BR units increased by 6% or $94 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.
Market Activity: Rochester, New York
Are you interested in investing in Rochester? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Rochester rental market that can help you with your investment analysis and overall decision.
- Price-to-Rent Ratio
- Avg 2BR House Price: $354,407 (According to Redfin data)
- Avg Annual 2BR Rent: $20,532 ($1,711 x 12 months)
- Price-to-Rent Ratio: 17
- Population Growth:
- -0.13% (According to Roofstock)
- The population grew by 0.36% over the past decade with the potential to double over the next 50 years due to population shifts (According to Roofstock)
- Major Companies & Institutions:
- University of Rochester, Rochester Regional Health, Wegmans Food Markets, Paychex, Rochester Institute of Technology, L3Harris Technologies Corporation, and Lifetime Healthcare Cos. Inc.
- Employment Growth: 3.5% (According to Roofstock)
Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Rochester. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.