New Construction in New York's Capital Region Costs Less Than Many Buyers Expect

Written by:

Alejandra Rodriguez

Date:

06 Aug 2026

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In parts of upstate New York, a brand-new home costs about the same as monthly rent, or less. That reality surprises buyers who assume new construction means $800,000-plus price tags, according to Sarah Itterman, a Realtor with Sterling Real Estate Group, an independent brokerage based north of Albany that has been voted the top independent brokerage in the area for five consecutive years.

Itterman says much of her 2026 business has come from first-time buyers and out-of-state workers relocating to the Capital Region for jobs. Many arrive expecting they are years away from homeownership. Instead, they find modular new construction in Johnstown, New York, about 15 minutes farther from Albany than the region’s hotter markets, starting in the mid-$300,000s with lot sizes over a third of an acre.

Who is Buying and Why

The Capital Region’s job market is pulling workers from other states. Albany, Schenectady, and Saratoga remain the employment centers, but their housing markets are tight. Itterman says homes in Schenectady and the Rensselaer area have been going under contract in less than a week since late March 2026. A $3.2 million Amazon facility under development just south of Johnstown is expected to add jobs and draw more people into the area.

That speed in the urban core pushes buyers outward. Johnstown offers lower property taxes than Albany or Saratoga, and its location at the foot of the Adirondacks appeals to buyers who want proximity to work without living in the middle of it. Itterman says that trade-off is landing with relocating buyers: “Even if you’re driving an extra 15 minutes to work with a brand new house, lower taxes,” that has been a deciding factor.

For first-time buyers specifically, the draw is predictability. A new home carries warranties that an older home does not. Itterman says buyers tell her they do not want to worry about replacing a roof or windows on top of a mortgage. “It gives these new home buyers peace of mind,” she says; they can focus on maintenance rather than major repairs for decades.

Why Modular Construction Changes the Math

The development Itterman works on, Aspen Hills in Johnstown, built by Phil Lake Modular Homes, uses off-site construction. According to Michael Caruso, who works with Itterman on the project, 85% of each home is built indoors in a climate-controlled factory located 17 miles from the site. Production takes approximately six to eight weeks. A local contractor handles final installation.

Itterman says this process protects materials from weather damage that commonly affects traditional site-built homes during framing. Wood that does not meet moisture-content standards is not used. Every stage of factory construction is inspected, and plans are approved by the state and a third-party engineering firm before production begins.

Caruso says the most common misconception buyers have is confusing modular homes with mobile or manufactured housing. The distinction matters: modular homes are built to regional and local municipal building codes, while manufactured homes follow federal standards. Caruso says that once buyers visit the community or the factory, the difference becomes clear, the finished homes are visually indistinguishable from conventional construction.

A Seller’s Market With Room to Build

The Capital Region has been a strong seller’s market since late March 2026, though Itterman says it slowed slightly over the summer. Listings still move quickly, and she reports little need for price reductions or major seller concessions. Clifton Park, Schenectady, and the Albany-Rensselaer corridor remain the fastest-moving areas.

Johnstown’s newer developments are still building out, which means supply is being added alongside demand. For buyers, that creates a window: unlike bidding on existing homes in tighter markets, purchasing in an active development means competing less for individual properties.

Itterman says Johnstown’s appeal extends beyond housing costs. The town’s historic downtown has seen revitalization, new retail has arrived, and the community offers distance from the Capital Region’s busier corridors while remaining close enough for a daily commute.

What Buyers Relocating From Out of State Should Know

Many of Itterman’s recent clients have never been to upstate New York. She says they often conflate the region with New York City and arrive surprised by how rural parts of the Capital Region are. Johnstown in particular offers a small-town setting, space, quiet, and proximity to the Adirondacks that differs sharply from what many out-of-state buyers expect from New York.

For buyers weighing the move, the relevant factors are commute tolerance, tax savings relative to Albany or Saratoga, and whether new construction warranties offset the distance from urban amenities. Itterman says the combination has been enough to pull buyers who assumed homeownership was five to ten years away into purchasing now.

About the Expert: Sarah Itterman is a Realtor with Sterling Real Estate Group, an independent brokerage based in Ballston Spa.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.