Uri Kaufman Discusses Why Developers Are Targeting Upstate Properties
As development interest spreads outside major metropolitan areas, the upstate is emerging as a region ripe with opportunity. The post-2020 migration wave, driven by remote work and shifting lifestyle preferences, has breathed new life into smaller towns and rural communities. Real estate developers are taking notice, drawn by a combination of lower costs, improving infrastructure, flexible local policies, and growing demand for housing and commercial space.
From revitalized downtowns to adaptive reuse projects, the region is benefiting from a multifaceted transformation. Investors are drawn not just by affordability but by the potential for long-term value in communities that offer an appealing blend of natural beauty, livability, and economic momentum. Uri Kaufman and his business partner, Ira Schwartz, note that as more people and businesses look for alternatives to high-density cities, the upstate stands out, with its towns poised to thrive while maintaining the unique qualities that make them special.
Rising Interest in Alternative Markets
Real estate developers are increasingly looking beyond major cities to regions like upstate New York, where shifting population trends are creating new opportunities. Since 2020, more people have been relocating from dense metros to suburban and rural areas in search of affordability, space, and flexibility. This trend has accelerated with the rise of remote work, giving families and professionals the freedom to prioritize quality of life over proximity to urban job centers.
This has turned the region into a viable option for both residential and commercial projects. Smaller towns with strong local character are drawing attention from developers who want to meet growing housing demand while tapping into markets with lower competition. In contrast to saturated urban cores, these communities offer room to build and a welcoming atmosphere for investing.
Cost Advantages and Investment Potential
Developing in the upstate offers a substantial cost edge compared to building in major urban centers. Land prices are considerably lower, and construction expenses tend to be more manageable, allowing developers to stretch their budgets further and take on projects that might be unfeasible in pricier areas.
The lower barrier to entry makes the area appealing to investors seeking long-term value. With steady demand and room for growth, properties in these regions often deliver strong returns through appreciation and rental income. Some investors are also diversifying their portfolios by acquiring properties in emerging towns that show signs of becoming the next hotspots. Holding costs are typically lower as well, adding financial flexibility to long-term projects.
In places like Schroon Lake and Kingston, early investment has already started to yield gains as more people move in and local economies expand. These markets aren’t just affordable—they’re also primed for change. As public spaces improve and businesses open, these towns are growing into vibrant centers of activity.
Infrastructure Upgrades
Ongoing improvements in transportation and digital infrastructure are making upstate more accessible and connected. Enhanced roadways, regional airport expansions, and improved rail lines are shortening travel times and linking towns more closely to larger hubs. These upgrades are not only benefiting residents but also attracting businesses looking for efficient logistics and workforce mobility.
Reliable broadband access has become a game-changer. With more people working remotely, fast internet has turned once-overlooked areas into viable locations for both living and doing business. Towns that were previously off the radar are now attracting professionals, entrepreneurs, and companies looking to establish a presence outside major cities. This shift is also helping smaller municipalities compete for talent and investment that once flowed exclusively to urban centers.
Supportive Local Policies and Zoning Flexibility
Many upstate communities are actively encouraging development by simplifying zoning regulations and offering incentives to builders. Compared to the bureaucratic hurdles in larger cities, these regions often feature faster permitting processes and more adaptable land-use policies, making it easier to move projects from concept to completion. Developers benefit from clearer timelines and less red tape, which can impact project feasibility.
Some towns have adopted forward-thinking approaches to attract new investment, such as tax abatements or grants tied to revitalization goals. In areas like Newburgh and Little Falls, local governments are working closely with developers to convert underutilized lots and vacant buildings into vibrant housing and commercial spaces.
Changing Housing and Commercial Needs
Remote work has reshaped where and how people want to live, and developers are responding. There’s a rising demand for properties that offer space, flexibility, and access to nature, especially among those relocating from crowded urban environments. This shift has sparked interest in constructing multi-family units, townhomes, and mixed-use properties that blend residential and retail in walkable settings.
Besides housing, there's also a growing appetite for co-working hubs, boutique retail, and community-driven commercial spaces. Developers are designing projects that reflect this new way of living, where home, work, and social life intersect more fluidly. Towns like Beacon and Catskill are already moving in this direction, attracting both newcomers and businesses that cater to evolving lifestyle needs.
Impact on Communities and Long-Term Outlook
As development expands across upstate, local economies are beginning to benefit through job creation, increased tax revenue, and renewed investment in public infrastructure. But growth also brings challenges, especially around affordability and preserving the character of long-standing communities. The influx of newcomers can strain existing services if not planned properly, and long-time residents may feel displaced without the right development strategies.
Striking a balance is key. While new housing stock can alleviate pressure in tight markets, thoughtful planning is essential to ensure that development enhances rather than disrupts local culture. Communities that put resources into sustainable growth strategies are more likely to thrive in the long run, maintaining their identity while embracing new opportunities.
