Residents encouraged to buy a home as rents increase in Buffalo
June 1, 2016, 6:01pm WIVB Channel 4 News Buffalo
By Callan Gray News 4 Reporter
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BUFFALO, N.Y. (WIVB)- Renters in Buffalo are being priced out of some neighborhoods because of rising costs.
A number of real estate experts told News 4 there is little affordable housing on Buffaloâs West Side. Now, residents are turning to the cityâs East Side to rent or own a home.
âI just want to have something to call my own,â said Marta Pabellon, a new homeowner.
Pabellon is now closing on a house in Buffaloâs East Side after two years of renting an apartment.
âI figure rent is the same price as paying a mortgage,â she said. âI just got tired living up and down from somebody, paying rent. Iâd rather put money into my own property.â
Sheâs a single mother of two daughters and didnât think she could afford a house. When she looked at renting again, she found out rent rose by $150 or more in the last two years. She looked for apartments in North Buffalo and on Buffaloâs East and West Sides.
âItâs been increasing a lot and not even for a larger apartment, a two bedroom is now the price of a three bedroom,â said Pabellon.
Erie County Legislator Betty Jean Grant said many renters across the city are in the same situation.
âAs people come to Buffalo, those that are in Buffalo renting now are finding themselves being displaced,â said Grant.
Grant told News 4 Buffaloâs growing medical corridor, the incentive of Say Yes to Education and the prospect of Solar City jobs are drawing people, and investors, to Buffalo.
âPeople who are in New York City and other places are buying homes eight, nine, ten at a time and theyâre renting them out for probably more than a person couldâve bought it themselves and rented it for,â she explained. âBuffalo is in a boom market for housing and weâre building a lot of apartments but unfortunately for the people here, especially the low income ones, theyâre for the high end income residents.â
Despite the competitive market, Grant said there are neighborhoods on Buffaloâs East Side where a mortgage can cost the same, or less, than rent. She encourages residents to consider buying a home.
âIf youâre going to pay rent for the same price you can buy a home and have equity in that house, thatâs a smarter move to go,â said Grant.
Not everyone agrees.
âThat, I guess, was a reality five years ago where it was actually, in Buffalo, cheaper to own your home than it was to rent,â said Stephanie Simeon, executive director of the non-profit Heart of the City. âThatâs not the case anymore.â
The organization supports housing development on the Lower West Side and helps first time buyers purchase a home.
Simeon said buying isnât necessarily cheaper because many homes still on the market for low-income buyers are considered âfixer-uppersâ.
âYou can get a mortgage for $800 a month but do you have money for a roof repair? Or do you have plumbing that needs to get done or just cosmetics?â said Simeon.
She said itâs putting many residents in a tough situation.
âYou cannot find rent below $600 so renting is not an option,â said Simeon. âIf youâre low to moderate income [a home] thatâs move in ready, thatâs not happening. Itâs tough, it is really, really tough.â