More home price growth to come in WNY

Jan. 6—Appreciating our home values

Get ready for more robust housing sales locally, because the Buffalo metropolitan area is expected to see some of the nation's highest home price appreciation and sales growth this year.

According to a new ranking by Realtor.com of the top housing markets in the country for this new year, the Buffalo-Cheektowaga area is ranked No. 5 in the country for not only anticipated combined growth in home sales and listing prices, but also affordability, as it has seen lower price increases so far when compared to many big cities.

It is in the middle of a top-10 group that is mainly concentrated east of the Mississippi River, in midsized markets whose economies are dominated by the manufacturing, education, health care and government sectors.

Buffalo came in behind Hartford-West Hartford, Conn.; El Paso, Texas; Louisville, Ky.; and Worcester, Mass., in that order. But it was ahead of Augusta, Ga.; Grand Rapids, Mich., Columbia, S.C.; Chattanooga, Tenn.; and Toledo, Ohio.

According to the ranking and the Buffalo Niagara Association of Realtors, the Buffalo market reported a $240,000 median home price in November 2022, but is expected to see a 6% increase in the forecasted 2023 home prices, and a 6.3% increase in home sales this year.

"The Western New York market continues to buck the national trend," said Joel HusVar, president of BNAR. "Looking to the first and second quarters of 2023, we see inventory levels rising to a more natural level, (with) home values slightly rising but still affordable. Additionally, as interest rates settle down, it will bode well for buyers and sellers."

Want to know more? Three stories to catch you up:

—As interest rates rise, home shoppers start to think cheaper

—Home sales slow nationally — but not in Buffalo

—Pickup in WNY housing inventory means more opportunity and time for buyers

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Welcome to Buffalo Next. This newsletter from The Buffalo News will bring you the latest coverage on the changing Buffalo Niagara economy — from real estate to health care to startups. Read more at BuffaloNext.com.

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DEALS, DEALS, DEALS

Grand Island: Haven 100 Project — a group led by Elev8 Architecture founder Michael Conroe and Justin B. Earl of Springville, Utah — bought the six-story former Radisson Hotel Niagara Falls-Grand Island from McSam Hotel Group's Grandsam Island LLC for $6.15 million.

The developers plan to spend $25 million to convert the closed 268-room hotel at 100 Whitehaven Road into an apartment complex with 132 market-rate units for both long-term and short-term rentals, along with an 8,310-square-foot restaurant, an 18,305-square-foot banquet center, and a public fitness center.

It would include nine studio, 90 one-bedroom and 33 two-bedroom units, plus an outdoor patio, dock, decks, pavilion and open lawn.

Under a community benefits agreement with the town, the project will also include a waterfront park on a slender 2-acre strip of land along the length of the Niagara River in front of the property. A public kayak launch is also proposed at the northern end.

Cheektowaga: Frank Chinnici's Legacy Development completed its $2.1 million purchase of a 6.1-acre site at 100 McKesson Parkway and on Union Road, behind the Walden Galleria, from Syracuse-based mall owner Pyramid Management.

The developer plans to construct a pair of large apartment buildings with 340 units in a $100 million project that will feature two five-story buildings, an interior courtyard and 340 onsite parking spaces.

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WHAT'S HAPPENING WITH ...

Mount Aaron Village

A development team led by CB-Emmanuel Realty and Community Hope Builders CDC Inc. has completed the $20.3 million construction of the new Mount Aaron Village affordable and supportive housing development in East Buffalo, adding 59 apartments aimed at lower-income and homeless populations.

The project at 695 Genesee St., sponsored by Mt. Aaron Baptist Church, features a three-story building with 43 units and 43,000 square feet of commercial space, plus three townhouse-style buildings with 16 apartments. It was built on 2 acres of vacant land the church's development arm acquired from the Buffalo Economic Renaissance Corp.

"We feel this is a positive addition to this growing and emerging neighborhood, which will only be enhanced through anticipated future phases of construction on surrounding sites," said Ben Upshaw, principal of CB-Emmanuel.

Eighteen apartments are set aside to support those experiencing homelessness, with rental subsidies and supportive services funded through the Empire State Supportive Housing Initiative. Those benefits are administered by the New York State Office of Addiction Services and Supports. The remaining 41 units are designated as affordable for households earning at or below 60% of the area median income.

"This development continues our block-by-block approach to rebuild this historic neighborhood in the City of Buffalo," said Pastor Dwayne Jones of Mt. Aaron Baptist Church and Community Hope Builders.

Supportive services will be provided by BestSelf Behavioral Health, and will include case management, behavioral health, education resources, counseling, mental health services, primary care, crisis intervention, peer support and health home care. BestSelf will lease the commercial space to provide the services to both residents and the surrounding community, through a community health clinic.

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The Buffalo Next team gives you the big picture on the region's economic revitalization. Buying a building? Redeveloping a property? got a tip? Reach Real Estate & Development reporter Jonathan D. Epstein at 716-849-4478 or email him at jepstein@buffnews.com.

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THE LATEST

Catch up on the latest news from the Buffalo Niagara economy:

The John R. Oishei Children's Hospital in Buffalo won a designation that it believes will play a big part in stabilizing its finances.

The United Way of Buffalo & Erie County is setting up a relief fund to aid nonprofits that help community members impacted by last month's blizzard.

Spectrum Health and Human Services has a new CEO, and it's a familiar face.

Efforts to build up the region's workforce are getting a boost from $1 million in new state funding.

Father Sam's Bakery is looking to expand its East Buffalo bakery, and it wants tax breaks to help pay for it.

A proposed Elmwood Avenue smoke shop across from a new luxury condominium building is running into some stiff opposition.

Across Western New York, health care workers have many stories to tell about how they made it through the blizzard while on the job.

Legal marijuana sales launched in the state Thursday, but not in Western New York, due to a lawsuit that led to an injunction pausing sales here.

World Central Kitchen is back to help feed Buffalo's East Side in response to the blizzard that shut down the city for nearly a week.

Wells Enterprises will eliminate 183 jobs at its Dunkirk plant, which is less than the 319 employees the company previously planned to lay off.

A three-year deal reached ensures Highmark members will continue to have in-network access to care at Catholic Health's facilities.

Athenex is closing its Newstead manufacturing plant and laying off all 92 employees as of March 17.

Preliminary efforts are underway to prepare for the third phase of the project to redevelop the Northland complex in Buffalo.

The state is looking for ideas to redevelop a prison that closed last year in Gowanda.

The federal funding needed to get a tech hub program off the ground has been included in a year-end spending bill before Congress.

Cost vs. Benefits: That's the trade-off at the center of the state's proposed climate change plan.

A development agency is hiring a consultant to come up with ways to improve the infrastructure linking Canalside and the redesigned Centennial Park.

The Buffalo Niagara region's sluggish hiring is being driven by a shortage of workers, and local officials are starting to look for ways to ease the crunch.

Big changes are coming to the state's energy markets after a plan to reduce harmful emissions was approved by an advisory panel.

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ICYMI

Five reads from Buffalo Next:

1. Bounce back for Buffalo Niagara economy: The value of all the goods and services produced in the region, which dropped by 3.4% during the pandemic, came roaring back last year, with a 5.3% gain.

2. The Bills make me want to shop: How Buffalo Bills merchandise is flying off shelves this season.

3. How will Western New York's higher education institutions recover from Covid-19? Enrollment at some local schools is holding up, but others are struggling to attract students.

4. New life for old stones: How a Buffalo company is finding new uses for old bricks and stones in construction projects.

5. Big changes are being proposed for the state's energy markets, and it could change the way residents heat their homes and cook their food in the years to come.

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