Few Homes, Plenty of Buyers: Inside New York's Catskills Housing Market

Written by:

Alejandra Rodriguez

Date:

18 Jun 2026

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Two hours north of New York City, the Catskills and Hudson Valley real estate markets are navigating a quieter chapter after several years of intense activity. The pandemic-era rush that turned small upstate towns into competitive sellers’ markets has given way to a more measured pace, shaped by persistent inventory shortages, elevated interest rates, and a buyer pool that looks noticeably different from just a few years ago.

With mortgage rates still near 6.75% and many homeowners locked into sub-4% loans from the pandemic era, few sellers are willing to list – leaving a thin market where investors from downstate have become the most active buyers. The dynamic is visible across Greene County, where properties under $500,000 still move quickly. Still, higher-priced listings sit on the market longer, and in small towns, they are physically changing as outside capital flows in.

Roxana Orrego, a bilingual sales agent with RVW Select Properties in Greene County, works this market daily and has watched conditions evolve in real time. Her perspective offers a ground-level view of what’s driving decisions – and what’s holding them back.

The Lock-In Effect

Investors Fill the Gap

With first-time home buyers largely sidelined by borrowing costs, investors have become the most active segment of the buyer pool – particularly those from the New York City metro area seeking income-producing properties.

Orrego is currently working with several downstate buyers searching for multifamily properties, though finding the right fit remains challenging. “More investors are turning to real estate because they still see it as one of the best long-term investment options for building generational wealth while also generating income.”

For these buyers, the math has to work. An ROI threshold of around 8% is typically the baseline, and properties need to show stable, long-term tenancy. High tenant turnover is treated as a red flag. The appeal of the Catskill area for this buyer type comes down to lower property prices, Greene County’s comparatively modest tax burden, and proximity to New York City. Some investors are also drawn by short-term rental potential, with Airbnb-style properties remaining a point of interest given the region’s tourism activity.

“They’re looking for something that makes sense, which they’re not able to find in their market,” Orrego says, referring to the cost barriers investors face in the city and its immediate suburbs.

Correcting Buyer Expectations

While investor interest is steady, many buyers arrive with assumptions that don’t align with local conditions – particularly regarding renovation timelines and labor availability. The gap between expectation and reality is one of the more practical challenges Orrego encounters regularly.

Many buyers assume that a renovation and tenant placement can quickly follow a fixer-upper acquisition. The area faces a shortage of skilled tradespeople, which means renovation projects can take considerably longer than buyers anticipate. Pricing expectations also need recalibrating; properties are less negotiable than some out-of-area buyers assume, and available inventory is thinner than the demand would suggest.

“Another misconception of buyers unfamiliar with the area is how quickly everything can happen. Buyers think they can buy a property and renovate it within a short period of time, but that’s usually not the case.”

That said, the physical results of outside investment are visible. Over the past five years, the influx of buyers and capital has contributed to noticeable improvements across the area. “The last five years, I have seen towns change completely, not just in demographics, but also how they look,” Orrego observes. “All the houses that were dilapidated are being upgraded and fixed.”

A Town Revitalized

The broader trajectory of the area extends beyond individual transactions. Downtown Catskill itself is in the middle of a revitalization supported by state funding for improvements along Main Street. New restaurants, coffee shops, and businesses have opened in recent years, and a new court facility is under construction. The town retains its historic character while gradually adding everyday amenities that attract younger families and remote workers seeking a lifestyle change without sacrificing convenience.

“It’s a very vibrant town,” Orrego says. “You have the old charm of a traditional town, and at the same time, new coffee shops have opened in recent years and the restaurants are great. There’s beautiful nature all around us. Coming from congested Long Island, life in the Catskills feels really refreshing.”

For Orrego, who relocated from Port Washington on Long Island five years ago, the area’s appeal is as much personal as it is professional. She became drawn to real estate through RVW Select Properties, a brokerage with deep local roots – its name references the Rip Van Winkle folk tale – that has operated in the community for four decades. Broker Ted Banta has more than 30 years of market experience.

What Comes Next

The near-term outlook for the market hinges largely on interest rates. Many prospective buyers and sellers are in a wait-and-see posture, hoping that rates will ease enough to make transactions more viable. Until that happens, the market is likely to remain constrained on the supply side, with investor activity continuing to drive much of the transaction volume.

For those willing to engage with the market as it stands, the fundamentals of the region remain intact: affordability relative to downstate, a two-hour drive to New York City, ongoing community investment, and a lower tax environment in Greene County. The open question is whether rates will decline enough to unlock both new listings and a broader pool of buyers – or whether the current pattern of limited supply and investor-driven demand will define the market through the end of the year. For buyers waiting on the sidelines, the risk is that when conditions do shift, competition returns faster than inventory does.

About the Expert: Roxana Orrego is a bilingual sales agent with RVW Select Properties in Greene County, New York, serving the Catskill and Hudson Valley real estate market.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.