Logo 2T

The Cost of Waiting: Why Buying or Building a Home in Buffalo, NY Has Only Gotten More Expensive

For years, Buffalo was known as one of the most affordable places to buy or build a home in New York State. But over the last six years, that reputation has changed dramatically.

The Buffalo Housing Market’s Shift: What’s Driving Higher Costs?

Home prices across Buffalo and Western New York have risen sharply, construction costs have increased, and buyers who chose to “wait it out” have often found themselves facing higher prices, not lower ones. Looking at the data today, the lesson is clear: waiting has been costly, and continued delays may only compound that reality.

Schedule Consultation
The cost of waiting to buy a home

Why Housing Costs in Buffalo Are Climbing Faster Than Expected

Buffalo Home Prices Have Risen Nearly 100% in Six Years

Between 2018 and today, median home prices and home values in Buffalo have increased approximately 80–100%, depending on neighborhood and housing type. What could once be purchased in the mid-$100,000 range is now commonly priced in the low-to-mid $200,000s.

For buyers, this has translated into:

  • Higher purchase prices for comparable homes
  • Larger down payments
  • Increased monthly mortgage payments

Even in a market with higher interest rates, Buffalo’s real estate market remains resilient due to limited inventory and steady demand.

How the Buffalo Real Estate Market Impacts Buyers and Renters Alike

The rental market in Buffalo has also seen shifts, with rent prices increasing alongside home prices, making affordability a challenge for many residents. As more people look to buy rather than rent, competition intensifies, pushing the listing price and asking price of homes even higher.

Building a Custom Home in Buffalo: Why Construction Costs Have Surged

Home Construction Costs Are Higher Than Ever

Since 2019, building a custom home in Western New York has become more expensive due to:

  • Rising material costs, including lumber, concrete, steel, and windows
  • Labor shortages and increased trade pricing
  • Updated energy codes and performance requirements
  • Supply chain disruptions that raised both pricing and timelines
 

While volatility has eased since the peak years of 2021–2022, the cost of new home construction remains significantly higher than before the pandemic. This directly influences home price growth and the overall value of new homes on the market.

The cost of wating to buy a home graph

Interest Rates Changed, But Buffalo Home Prices Didn’t Fall

Many buyers delayed their plans expecting higher interest rates to bring prices down. In Buffalo, that correction largely never materialized.

Instead, the market experienced:

  • Homeowners holding onto low-rate mortgages
  • Fewer homes sold and less turnover in the multiple listing service (MLS)
  • Continued competition for well-built, energy-efficient homes

The result is a market where buyers often face both higher home prices and higher borrowing costs than they would have several years ago.

The Hidden Costs of Waiting: What Buyers May Not Realize

Beyond market statistics, waiting often carries a personal cost:

  • Living longer in a home that no longer fits your lifestyle
  • Postponing plans for aging-in-place or multi-generational living
  • Paying rent without building equity in the rental market
  • Settling for a home that requires compromises in layout, quality, or energy efficiency
 

For many homeowners, the goal isn’t simply appreciation, it’s living in a home that supports how they live today and into the future.

Why More Buyers Are Choosing to Build Their Dream Home Now in Buffalo

Despite higher costs, many buyers are moving forward now because:

  • Buffalo home prices have shown long-term stability and home price growth
  • Construction costs are more predictable than they were several years ago
  • Inventory remains limited for high-quality homes in desirable neighborhoods like Elmwood Village
  • Building a custom home allows for long-term planning instead of short-term compromise
 

A thoughtfully designed custom home provides control over layout, durability, energy performance, and long-term operating costs. As replacement costs rise, quality and efficiency matter more than ever.

What This Means for Buffalo Residents and Future Homeowners

The past six years have made one thing clear: waiting did not make homes in Buffalo more affordable. While no market moves in a straight line, the fundamentals driving housing costs and construction prices in Western New York remain firmly in place.

For those considering a custom home, the real opportunity lies not in timing the market perfectly, but in making a smart, well-planned decision that supports long-term value and livability.

Take the Next Step Toward Your Perfect Home in Buffalo

At Mōdish Custom Homes, we help clients design and build custom homes tailored to their lifestyle, site, and long-term goals. Whether you’re just starting to explore the idea of building or are ready to move forward, a clear plan and realistic pricing can bring confidence to the process.

If you’re considering building a custom home in Buffalo or Western New York, we’d be happy to have a conversation. Schedule a no-hassle consultation to determine your next steps.

Frequently Asked Questions (FAQs)

Why have home prices in Buffalo, NY increased so much in recent years?
Home prices have surged due to limited housing inventory, rising construction costs, increased demand, and economic factors like inflation and higher interest rates. Neighborhoods like Elmwood Village have seen particularly strong growth.
Building a new home offers customization and modern energy efficiency but often comes with higher upfront construction costs. However, the predictability of costs and control over design can make it a smart long-term investment.
Down payments vary but generally range from 5% to 20% of the home’s purchase price. With rising home prices, saving for a larger down payment can help reduce mortgage costs and improve loan terms.
As home prices increase, more people turn to renting, which drives up rent prices and reduces the availability of affordable rental units, making the rental market more competitive.
Buyers should evaluate their budget, timeline, desire for customization, and the current state of home listings. Limited inventory and rising prices make building a custom home attractive for those who want control over design and energy efficiency.

Get In Touch

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Name*

42019 Grove Inn Lindal Elements 2

About Mōdish

Mōdish Custom Homes is an independent Lindal Homes representative. We are your guide and advocate throughout the entire design/build process, from concept to completion.

Useful links

Contact Us

Copyright © 2025 Mōdish Custom Homes. All Rights Reserved.
Marketing by Vixel Studio.

Icon-facebook Icon-linkedin Instagram

Thank you for downloading our complimentary Project Planning Workbook. Should you have any questions, please contact
chris@modishcustomhomes.com

Download the Workbook

Thank you for downloading our builder comparison guide. If you have any questions please contact chris@modishcustomhomes.com

Download the Guide

Where should we send your Construction Comparison Guide

Your information is 100% secure and will never be shared.

By providing my email i would like Mōdish Custom Homes to continue to send me relevant material by email.

You can withdraw your consent at any time. All our correspondence includes an unsubscribe link.

Where should we send your Project Planning Pack

Your information is 100% secure and will never be shared.

By providing my email i would like Mōdish Custom Homes to continue to send me relevant material by email.

You can withdraw your consent at any time. All our correspondence includes an unsubscribe link.

Contact Details

Please fill out all required fields

"*" indicates required fields

Name*
Address*

Your information is 100% secure and will never be shared.

By providing my email I would like Mōdish Custom Homes to continue to send me relevant material by email.

You can withdraw your consent at any time. All our correspondence includes an unsubscribe link.