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Rural life becomes increasingly costly
New state report finds "suburban gentrification" raises housing prices  
  
By CHRIS CHURCHILL, Business writer
First published: Tuesday, July 22, 2008

Suburbanization and a wave of second-home purchases are making housing difficult to afford in the Capital Region's outlying areas, according to a state report being released today.
The report by the Division of Housing and Community Renewal says that in Greene, Saratoga and Washington counties, many towns are undergoing a "suburban gentrification" that is transforming their once-rural characters while straining longtime residents.

  
"The home-purchasing power of local residents often cannot match those from outside the region," the report says.

The report is the third of nine regional studies state officials are planning as part of a statewide assessment of housing needs. Each avoids detailed statistical examination, with findings instead based on site visits and focus-group meetings with local residents and officials.

"We're telling a story rather than using statistical analysis," said Deborah VanAmerongen, the division's commissioner.

And while that story might seem unpleasant to rural residents, it's probably familiar.

"We've always had a number of second-home buyers," said Al Cormier, a longtime resident of Salem, Washington County, who said many of those buyers are willing to pay more for homes than locals would. "They have the means to do that, if that's what they want to do."

Meanwhile, towns close to employment centers are experiencing suburbanization and rising prices as homebuyers look for value within commuting distance.

"Schuylerville has come up tremendously in the past four or five years," said Chris Preble, a real estate agent in Salem. "That's directly because of the Saratoga market trickling over."

The Capital District Regional Report was compiled in April and May, before $4-a-gallon gasoline became a national reality. Opinions were mixed on whether the rising cost of travel would curb trends described in the report.

Preble said the second-home market in Washington County has already cooled. But in Greene County, one official said the area's popularity would continue because of sky-high prices to the south.

"People can and will commute to Poughkeepsie to make up that difference," said Karl Heck, community development specialist with the Greene County Department of Planning and Economic Development.

Statistics from the New York State Association of Realtors mostly back the study's claims. They show that the median home price in Warren County, for example, climbed 11.5 percent from 2005 to 2007, to $195,000, while it rose 6.4 percent in Greene County.

The data also show why the counties are attractive for value-seeking buyers: The median 2007 home price in Greene County was $171,000, about $30,000 less than Albany County and about half the average in Dutchess County.

In Washington County, the median 2007 price was $119,500 -- up 10 percent from 2005, but still a relative bargain.

"There are reasonably priced homes here," said Cormier, the Salem resident.

The state report studied the region's urban areas, too, finding that the primary housing issues facing Troy, Schenectady and Albany are the number of vacant or rundown properties.

"Albany contains many substandard properties and an insufficient number of housing units suitable for habitation," the report says. "The existence of vacant buildings was raised as a primary housing issue facing the city."

The report details problems, but doesn't explicitly recommend solutions. But VanAmerongen, the housing commissioner, said officials will use the information gathered in the nine reports to drive state housing policy in upcoming years.
She said the series of reports is the first such effort the state has undertaken and is an attempt "to truly understand the housing needs of communities across the state."

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.