Buffalo, NY

Market Update

Buffalo's population has shown a slight increase, reaching approximately 1,160,172 in the fourth quarter of 2026, marking a year-over-year growth of 0.4%. This follows a trend of population fluctuations over the past few years, with a peak in 2021 at about 1,162,336. The area has experienced a net migration gain of 5,432 residents, contributing positively to local demand for housing. The median household income stands at $72,300, while the unemployment rate is recorded at 4.2%. Employment figures indicate a robust labor market with 573,813 jobs, and the renter share is relatively modest at 31.2%, suggesting a balanced housing demand landscape.

In the multifamily sector, HUD Fair Market Rents for a two-bedroom unit are benchmarked at $1,771, which is notably lower than the current asking rent of $1,176. Year-over-year multifamily rent growth is reported at 3.9%, indicating a solid upward trend in rental pricing. The median gross rent remains stable at $1,114, reflecting the market's affordability challenges, particularly for lower-income households. The rent growth rate exceeds the national median of 3.5%, suggesting a favorable momentum for landlords in the region.

Capital markets for Buffalo's multifamily sector are characterized by a cap rate of 7.88%, which is approximately 84 basis points higher than the national median of 7.04%. Over the trailing 24 months, there have been 1,130 transactions with a total dollar volume of about $366.4 million, resulting in a median price per unit of $199,950, which aligns closely with the national benchmark. This data indicates a stable investment environment, though the cap rate suggests a risk premium relative to other markets. Recent reports from CBRE Research indicate that investor interest remains strong, suggesting continued activity in the multifamily sector.