There are a lot of misconceptions about Albany, N.Y. Despite what a Conde Nast Traveler study finds, the people of Albany are not unfriendly. In fact, they're downright nice, which you'll experience if you visit Albany. Here you'll find smiles exchanged between strangers and courtesies extended without expectations of something in return.
Then, there's the "Smallbany" nickname, despite the fact that Albany is home to nearly 100,000 residents who enjoy the fact that they can get just about anywhere in their city within 20 minutes. Small does have its advantages.
The fact is, residents here love their city for its location on the Hudson River and for the fact that it's 150 miles north of New York City - far enough to enjoy a small-town vibe, yet close enough to take advantage of the city's hustle and hum when the mood strikes.
One of the actual drawbacks of living in upstate New York, which you'll frequently hear newcomers complain about, is the weather. While summers are hot and humid, it's the long, cold, snowy winters that get some folks down.
Albany is known for its large selection of educational institutions, with SUNY Albany, Union University and the State University of New York (University of Albany) among them. Many of the area's high-tech industry workers are graduates of these schools, choosing to remain here rather than contribute to a "brain drain."
It's the educational institutions that bring a diversity and energy to the area that is lacking in many other cities of this size. Despite New York Magazine dubbing this fair city as the "World Capital of Boring," you'll find an amazing live music and theatre scene (The Egg and the Palace Theatre are two local favorite venues), as well as fabulous eateries along Central and Delaware Avenues and along Broadway in Albany.
The outdoor fun spots in Albany also belie the "boring" label. With more than 60 parks and public recreation areas, Albany offers ice skating in the winter, soccer in spring or swimming in the summer.
Albany's neighborhoods are as diverse as its people, with something for everyone. More gentrified neighborhoods are located in midtown and include Lark Street, Center Square and Washington Park. Here you'll find a nice mix of residential and small commercial concerns. Newer homes are located mainly in the Park South area, which has gone through a period of revitalization. Suburban vibes and amazing vintage homes can be found in the western neighborhoods, such as Whitehall, New Scotland and Pine Hills.
Q2 2015 Albany Rental Market Update
For the second consecutive quarter, Albany unfortunately remains one of the least attractive metropolitan areas in the country for rental real estate investment. It is ranked 18th out of 18 Northeastern metros in the Q2 2015 Rental Ranking Report and 74th out of 75 metros in the Rental Ranking Report's national rankings.
The one great thing Albany's rental real estate market had going for it in Q2 2015 was its impressive 8.89 percent year-over-year median rental price increase, which was almost 80 percent higher than the national average for that metric. The capitalization rate for Albany, a metric that compares annual rents to median property values, was a modest 6.45 percent last quarter. While slightly below the national average, this "cap rate" should still be enough to pique the interest of rental property investors.
Other statistics used to gauge housing demand paint a considerably less rosy picture of Albany's rental real estate market. Albany's annual property value appreciation rate, 2.20 percent, was one of the lowest in the U.S. last quarter and was less than half the national average for that metric. The relatively high local vacancy rate, 7.90 percent, was 20 percent less than the national average in Q2 2015. Albany's median age of housing inventory was 83 days, about three weeks less than the national average last quarter and one of the highest median ages of housing inventory in the country. Finally, the local annual job growth rate was just 0.95 percent (less than half the national average), indicating that the sluggish job market is bringing relatively few new residents to Albany - and therefore doing little to improve the demand for its rental housing.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Albany rental property?
Thinking about renting out a property in Albany? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.