Migration Patterns Reshape Westchester and Yonkers as Affordability Drives Buyers North

Written by:

Steve Marcinuk

Date:

12 Feb 2026

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The high cost of housing in New York City continues to push buyers into the suburbs, redrawing the real estate map north of the city and creating new opportunities for agents who closely track migration trends. Rummy Dhanoa, who leads a 150-agent team at eXp Realty and has spent two decades in the region, has built his business on understanding how these population shifts impact market dynamics from the Bronx through Westchester and into Yonkers.

The Affordability Pipeline

The pattern driving the current market is clear: as New York City prices climb, buyers look north for relief. Entry-level options in the city remain expensive, with studio condos typically around $500,000 and co-ops only modestly less. Dhanoa points out that properties in Queens that once sold for $600,000 to $700,000 are now priced at $1.3 million or more for multifamily homes, making them out of reach for many buyers. This pricing pressure has triggered a steady flow of buyers first into the Bronx, then into Yonkers, each time raising demand and prices in the next most affordable area.

Strategic Location and Transit Access

Yonkers stands out for its transportation advantages, which have helped accelerate its growth. The city’s location offers access to four major highways and multiple train lines, including stations on both the east and west sides. The convenience for commuters is a key selling point, enabling residents to reach Manhattan quickly for work. Dhanoa notes that this connectivity is a primary reason why prices in Yonkers continue to rise.

Recent data support this trend. Westchester County home prices have increased 6–11% year-over-year, with Yonkers outpacing even that growth. Dhanoa’s own experience reflects the market’s trajectory: a three-family property he bought in Yonkers 15–20 years ago for $450,000 recently sold for $850,000–$900,000, nearly doubling in value. This long-term appreciation has made Yonkers a focal point for both end users and investors.

Market Segmentation

Today’s market is sharply segmented by price. Properties listed below $700,000 continue to attract strong interest and move quickly, especially those under $500,000. Dhanoa confirms that competition remains fierce at these levels, but once asking prices exceed $800,000, homes tend to linger on the market unless priced accurately from the start.

Overpricing can have serious consequences. Homes above $700,000 that are not aligned with market realities often require substantial price reductions to attract buyers. “When you go above $700,000, if you’re not priced correctly, you will stay longer on the market. And you’re going to have big price adjustments, not small ones,” Dhanoa says.

Investment properties face their own set of challenges. Multifamily buildings, once a mainstay for investors seeking reliable returns, have become less attractive as purchase prices outpace rental income growth. Dhanoa explains that it is increasingly complex to find three- or four-family properties that deliver a logical return on investment unless rents are exceptionally high. The numbers no longer pencil out for many buyers using traditional investment criteria.

Technology Changes the Playing Field

The rise of artificial intelligence and advanced search tools has fundamentally changed how buyers and agents approach the market. Dhanoa notes that prospective buyers now arrive far more informed than in the past, often using tools such as Google, Gemini, and ChatGPT to research neighborhoods, schools, and even local agents.

This access to information has raised the bar for agents, who must now tailor their marketing strategies to reach both algorithms and people. Dhanoa recommends that agents incorporate local keywords and details into every listing and marketing piece to ensure online buyers easily find their properties. “Every time you get a listing, you want to say ‘Yonkers, New York listing.’ Make sure when you advertise, you talk about that listing so AI is indexing all of this information,” he advises.

Buyers’ increased sophistication also means they come to the table with clearer preferences and expectations. They are often armed with data on comparable sales, neighborhood trends, and even the reputations of agents and brokerages. Agents who fail to adapt to this environment risk losing out to those who embrace the new tools and understand how to use them to build trust and credibility.

Deal Execution: Regional Hurdles

Despite strong demand, closing deals in Westchester and Yonkers comes with unique obstacles. The involvement of attorneys in New York real estate transactions often slows the process, sometimes to the point where deals fall apart. Dhanoa notes that delays of more than 48 to 72 hours without progress can derail even the most promising transactions. This contrasts with neighboring states like Connecticut, where agents handle a larger share of the process and can often move deals more efficiently.

Flood insurance is another emerging friction point for buyers and sellers, particularly in parts of Yonkers with heightened flood risk. Dhanoa urges agents to understand whether a property requires flood insurance, as premiums can range from $2,000 to $4,000 annually. These costs can affect a buyer’s debt-to-income ratio and, in some cases, force renegotiations or even derail a sale.

The Changing Investment Landscape

Investor behavior has shifted in response to tightening returns and rising prices. Dhanoa observes that while investors once sought 5–6% cash-on-cash returns, many now target at least 7% to justify the associated risks and costs. Tax advantages like depreciation and write-offs remain part of the calculation, but the pool of attractive investment properties in Westchester and Yonkers has shrunk.

As a result, investors are casting a wider net, looking beyond the immediate New York metro area to upstate New York, Connecticut, Pennsylvania, Virginia, and the Carolinas. Dhanoa has expanded his business into North and South Carolina in anticipation of this trend, aiming to serve investors seeking better returns and more favorable market conditions.

New Construction: A Limited but Growing Opportunity

While resale inventory remains tight and land is scarce, new construction is emerging as a bright spot for builders and buyers alike. Municipalities in and around Westchester have begun easing restrictions and encouraging the development of more affordable housing, creating opportunities for new projects.

Dhanoa notes that land suitable for development is now extremely scarce, especially north of Yorktown. When opportunities do arise, he advises buyers and investors to move quickly, particularly for parcels that can accommodate two-family homes or in-law setups, as these configurations remain in high demand.

Outlook: Navigating a Complex, Evolving Market

Looking ahead, Dhanoa expresses cautious optimism for the remainder of the year. He reports a pipeline of strong listings and a growing number of buyers and sellers interested in entering the market. “We have good listings coming up, and we have a lot of buyers signed up. We notice a lot more buyers and sellers are looking to have conversations about selling their houses,” he says.

Several factors support this positive outlook. Interest rates have begun to improve, making financing more accessible for both first-time buyers and move-up purchasers. Technology continues to streamline the process of finding, evaluating, and marketing properties. Most importantly, the ongoing migration of buyers from New York City and other expensive boroughs is likely to sustain demand in Westchester and Yonkers.

However, success in the current environment depends on understanding the hyperlocal factors that drive each transaction. Agents and investors must pay close attention to pricing trends, attorney timelines, flood zones, and the evolving expectations of highly informed buyers. Local knowledge, adaptability, and a willingness to embrace new technologies are now essential for anyone seeking to navigate the market successfully.

The key takeaway for market participants is that while broad trends such as migration and affordability set the stage, the outcome of each deal is determined by on-the-ground execution. As buyers and investors become more selective and informed, those who can accurately assess local dynamics and respond quickly to opportunities will be best positioned to thrive in Westchester and Yonkers’ fast-changing real estate landscape.