June 08, 2025
If you're thinking the most cutthroat housing markets are in New York City or San Francisco, think again. This spring, it's Rochester, New York — a mid-sized city on the shores of Lake Ontario — that’s giving buyers a serious reality check.
As a Realtor, I’ve seen my share of bidding wars. But in Rochester, it’s become the norm. The city’s limited inventory, paired with still-affordable home prices, has created a market where buyers are routinely offering tens of thousands over asking just to stay in the game.
According to Zillow’s heat index, Rochester even outpaces markets like Boston and San Jose — scoring a red-hot 146.5.
The competition is so intense that agents in the area now coach clients to filter their online searches below their budget, knowing full well that a $300,000 listing will likely sell for $350,000.
Forget including an inspection contingency — in this market, that could cost you the house.
So how did this happen in a city whose population actually peaked in 1950?
Ironically, it's because Rochester is still affordable. With a median home price of $225,000, even after a 12.5% jump from last year, it’s within reach for households earning $60K–$80K.
Combine that with a solid job base — think Wegmans, Paychex, and a growing healthcare and education sector — and you’ve got serious demand.
But supply? That’s a different story.
There were fewer than 1,000 homes listed for sale at the end of March. Builders are hesitant because prices are too low to turn strong profits, and many current homeowners are locked into 3% mortgage rates and don’t want to move.
Add in a lack of post-recession construction and you’ve got a shortage that’s 18,000 homes deep.
Rochester has become a battleground of buyers — from locals to relocators and investors.
Colonial and Foursquare homes from the early 1900s are getting snatched up fast. And if you’re a buyer? Be ready to act fast, bid strong, and leave emotions at the door.
There are hints that things may be cooling slightly — agents are reporting a drop in the number of offers per home, and some listings are sitting longer than a week.
But until supply catches up, Rochester’s market will stay competitive.
For those looking to break into the market: know your numbers, work with an agent who understands how to win bids, and don’t be afraid to get creative — bigger deposits, flexible terms, and strong local lenders can go a long way.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
