If you are a current or aspiring homeowner in the Hudson Valley, you surely want to know: What’s up with real estate right now? Let’s cut to the chase: Yes, the market has been a little sleepy, but it’s waking up. Yup, there’s still more demand than supply, so prices continue to rise. Period houses loaded with charm are always winners, but new construction is wooing the younger generations. And many buyers are eyeing the northern and western reaches of the region in search of great homes at affordable prices.
Let’s do a deep dive into Hudson Valley real estate—and maybe discover a dream home or a bargain fixer-upper in the process.
“We have fantastic restaurants; the quality of food rivals that of New York City and Boston; and there are really authentic farmers’ markets, or you can buy direct from local farmers. Don’t overlook the growing arts scene either.
Making Sense of the Market
While the market may not be in hyperdrive (as it was in 2020, when properties sold sight unseen to urbanites escaping lockdown), it’s good! “We are really seeing things gearing up this spring,” says Elyse Harney Morris, principal broker and co-owner at Harney Real Estate, in Millerton and Connecticut. There’s strong demand in the Hudson Valley, both east of the river and in the Catskills, but not enough inventory to meet demand…which is the very definition of a hot market.
There’s the continuing allure of living somewhere beautiful and historic, where the pace of life is calmer, the air cleaner, and the crime rate lower. That attracts everyone from downstate families to downsizers from across the Valley and the country. “Quality of life is a major draw,” says Hudson-based broker Michael Stasi, with Corcoran Country Living. “We have fantastic restaurants; the quality of food rivals that of New York City and Boston; and there are really authentic farmers’ markets, or you can buy direct from local farmers. Don’t overlook the growing arts scene either.”
Also, politics and the economy are shifting, which is getting people off the dime and ready to buy. In late 2024, some potential house shoppers were sitting on the sidelines, waiting to see what would happen with the Presidential election—and the world. But since 2025 swept in, there’s renewed interest.
Bonus season on Wall Street (typically January into March) was, at press time, looking lush, so brokers were expecting a healthy crop of finance folk to take their dollars upstate in search of weekend homes (which can make up half of many towns), often paying cash.
What’s more, “buyers have gotten sick of waiting for rates to drop, and it’s not looking like they will come down substantially any time soon,” says Lisa Halter of Halter Associates Realty, with offices in Woodstock and Kingston. The small rate cuts courtesy of the Fed haven’t softened up mortgage rates much, and those who are hoping to return to the much-ballyhooed “historic lows” of several years ago are realizing it just isn’t going to happen any time soon. Into the market they jump!
However, there’s a hurdle to matching buyers with their dream homes: a general lack of inventory in the Hudson Valley. Those homeowners who are sitting pretty with their 2.65 percent interest rate might be able to sell at a profit…but where would they go? Current interest rates and asking prices mean that if they sell, they have few affordable options in the area, so they are often sitting tight. That said, Delyse Berry, CEO and principal broker at Upstate Down in Rhinebeck, says as NYC businesses call workers back to the office, that dynamic could shift. Those who relocated during the pandemic may need to rethink their residence.
One other factor impacting the market: The National Association of Realtors settlement last year, which has shifted how realtors get paid. Sellers no longer have to pay a buyer’s agent, which means a buyer must sign an acknowledgement of this fact and might have to cover this chunk of change. Says Halter, “Sellers are typically still offering some compensation to buyer’s agents, but buyers may have to chip in—and they may be surprised to do so.” This new wrinkle can shift budgets for those on both sides of the deal and potentially impact pricing.
Dream House, Redefined
Picture an antique farmhouse in Dutchess County with a bright red front door, or a rustic, tucked-in-the-trees cottage near Woodstock: Surely those pull at many people’s heartstrings. “There’s always a customer for the quintessential weekend fantasy house, which is typically an antique,” says agent Bill Melnick with Harney Real Estate. Sleek midcentury modern homes have their allure, but by and large, ranch houses are left in the cold, not appealing to most of the shoppers who want a home with oodles of charm. (Though Upstate Down’s Berry, a masterful rethinker of properties, says even these boxy homes can be warmed up with a smart renovation, new finishes, and on-point lighting.)
Whether a home is decades or centuries old, here’s a new wrinkle: “By and large, it has to be done,” says Melnick. People are increasingly wary of doing the work to restore vintage homes that need updating. The supply-chain issues that unfurled during the pandemic haven’t fully subsided, and there’s more in terms of motives.
By the Numbers
Need some cold, hard figures? Here’s a snapshot of year-over-year Hudson Valley real estate details, average home values, change vs. a year ago, and length of time on market (when homes go from on sale to pending). —Zillow
Young families, who are a significant part of buyers, don’t want to do the work, since they are already stretched thin. Time and again, agents and brokers say that a “done” or move-in ready home is what makes a house shopper jump.
Another trend bubbling up: New construction, says broker Lisa Halter. Many of the younger generation of buyers want the big rooms, clean lines, and modern conveniences of just-built homes. Plus, no worries about having to upgrade the electrical or eradicate wood-boring beetles that have set up shop in the home’s main frame. Whether a “Millennial farmhouse” painted “gentrification gray” or a seriously spartan contemporary, these homes are becoming a force to reckon with.
Aspiring Hudson Valley residents are also hungry for outbuildings, says Corcoran Country Living’s Stasi. A property with a guest cottage or a finished barn that can be a welcoming entertaining space are high on many people’s wish lists.
And as much as buyers love the natural environment, eco-friendly bells and whistles are nice but not usually deal-makers. Solar panels, for instance, can be a liability if they are rented and wind up increasing the new owner’s expenses. A big-ticket item like geothermal heating may not be motivating enough for a buyer to shell out extra cash vs. something that immediately impacts their day-to-day living, such as a perfectly engineered kitchen or an in-ground pool.
The New Hotspots
Hunting for an undiscovered corner of the Hudson Valley? Good luck, say the real estate agents and brokers we spoke with. But there are a few areas that are growing in interest, away from the crowds scoping out the usual suspects of Rhinebeck, Hudson, Kingston, and Woodstock.
Harney Real Estate’s Morris says Shekomeko in Dutchess County is fast rising to the top of buyers’ wish lists, nestled in rolling farmland with lots of preserved acreage protecting the rural vibe of the area. “There’s so much land that’s in conservation, so those beautiful views are forever,” she explains.
Meanwhile, buzzy Ulster County has become less affordable, so buyers are pivoting to search farther afield. Principal Broker Lisa Halter says shoppers are snapping up properties in Ellenville and are looking way further west in Andes and Bovina—“those towns are now pretty desirable”—and north to Catskill and Durham, in search of lower prices.
CATSKILL IS AN EMERGING HOT SPOT—GREAT ARCHITECTURE AND PRICES ARE STILL REASONABLE.
Michael Stasi is seeing interest grow in Newburgh, while Delyse Berry says Catskill gets her vote as an emerging hotspot. “It’s got great architecture, interesting businesses are going in, prices are still reasonable, and you’re close to Hudson—plus you’re in a terrific slice of nature.”
Hudson Valley Hotspots
- Shekomeko
- Ellenville
- Catskill
- Durham
- Newburgh
Look Who’s House Shopping!
During 2020 and the years immediately following, the Hudson Valley housing market went on full boil, with “downstaters” or city folk heading north to enjoy their own rural, small-town fantasy. These folks still make up a lot of the buying market, whether for full-time homes or weekend places, and often, their city salaries make them stiff competition for locals trying to upgrade or downsize.
While her #1 buyer is someone questing for a weekend home, many shoppers want to be in the Hudson Valley full-time, says Morris. “What happens is one family moves from Brooklyn, and they tell three families, who come visit and fall in love with the area,” she says. Locales with well-regarded school districts, such as Millbrook, can command higher prices from NYC refugees.
But there’s a new group of buyers who are very motivated to be in the Valley: Californians displaced by the devastating fires in the Los Angeles area or fearing further environmental disasters will threaten their safety. Brokers across the area say the impact on their business has been immediate, as West Coasters look for a safe haven not too far from the city, with convenient access.
The Bottom Line
How much are buyers spending? Of course, it depends. Some brokerages work with higher-end buyers who drop an average of $1.25 million for their place in the Valley—often all cash. But elsewhere, the $500K-and-under price point is the place to be, as shoppers seek a more modest home.
If a home is super well-priced, it might get a few competing bidders, but most properties today are on the market for at least a couple of months. For instance, the average days on market clocks in at 73 in Ulster County and 72 in Columbia Country, per Coldwell Banker data. Sales are often within 5 percent of the asking price. So, while bidding wars aren’t unheard of, it takes a special, “that’s a great price!” property to get the sealed offers flowing.
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