1031 Exchange in Ithaca MSA
The Ithaca MSA offers premium 1031 exchange opportunities with moderate cap rates, stable rental demand driven by Cornell University and Ithaca College, and competitive property taxes in New York's premier university town.
Population
105,740
Key Industries
Cornell University, Ithaca College, Healthcare
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
2.79% - 3.15%
Assessment Method
Assessed Value (New York Property Tax Code)
MSA rate (2.79%) vs State average (1.69%)
+65% above state average
Transfer Taxes & Fees
Transfer Tax Rate
0.4% state + local fees
New York state transfer tax of 0.4% plus local recording fees and title insurance costs
Local Tax Incentives
New York State Economic Development Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Cornell University Partnership Programs
Research and technology transfer incentives
Eligibility: Companies partnering with Cornell research programs
Opportunity Zones
Number of Zones
1
Key Locations
- Downtown Ithaca
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
105,740
Growth: +1.2% annually
Median Income
$67,458
Unemployment
3.8%
Job Growth
+1.8% annually
Economic Drivers
Market Trends
Median Home Price
$349,920 - $550,000
Average Rent
$1,485/mo
Cap Rates
5.5% - 7.2%
Demographics
Median Age
26.8 years
Bachelor's Degree+
70.2%
Owner Occupied
48.5%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by Cornell and Ithaca College students with stable institutional tenant base and premium rental rates.
Market Metrics
- Cap Rates: 6.2%
- Vacancy Trends: Very low vacancy at 3.2% due to strong university enrollment
- Demand Forecast: Stable demand from elite university enrollment and research growth
Risk Factors
- High property taxes affecting returns
- Seasonal rental patterns with academic calendar
Opportunities
- Cornell University 26,000 students generating $450M spending
- Elite university market with affluent student base
Single-Family Rental
Popular with faculty, graduate students, and professionals seeking quality housing in university town.
Market Metrics
- Cap Rates: 6.8%
- Vacancy Trends: Low vacancy at 4.5% with excellent tenant retention
- Demand Forecast: Strong fundamentals with university employment and research base
Risk Factors
- Very high property taxes (2.79%)
- Academic calendar affecting some rental patterns
Opportunities
- High-income tenant base (faculty, professionals)
- Exceptional appreciation potential (up to 37.9%)
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Ithaca
Historic downtown core with Cornell proximity and vibrant student life
Investment Thesis
Opportunity zone benefits, strong student housing demand, and exceptional appreciation potential in select areas (37.9% in some zones).
Median Price
$385,000
Price Growth
+37.9% YoY
Rental Yield
6.8%
Days on Market
25 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use student housing projects
Cornell Campus Area
Premium area adjacent to Cornell University with high-end student housing
Investment Thesis
Premium student housing market, stable Cornell enrollment, and strong rental rates from affluent student population.
Median Price
$625,000
Price Growth
+15.2% YoY
Rental Yield
5.2%
Days on Market
18 days
Key Highlights
Development Pipeline
Limited development due to zoning and topography
Cayuga Heights
Affluent residential area popular with Cornell faculty and professionals
Investment Thesis
Faculty and professional rental market, excellent schools, and strong property value stability.
Median Price
$785,000
Price Growth
+8.5% YoY
Rental Yield
4.8%
Days on Market
22 days
Key Highlights
Development Pipeline
Limited high-end residential development
Ithaca College Area
Area surrounding Ithaca College with student housing demand
Investment Thesis
Student housing market, stable college enrollment, and affordable entry points relative to Cornell area.
Median Price
$425,000
Price Growth
+12.8% YoY
Rental Yield
6.2%
Days on Market
28 days
Key Highlights
Development Pipeline
Student housing and mixed-use developments
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Compare Markets
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Compare Markets
| Metric | Ithaca (Current) | Syracuse | Albany | Binghamton |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Ithaca 1031 exchanges
Ithaca offers exceptional appreciation potential (up to 37.9%), stable rental demand from Cornell University (26,000 students), high education levels (70.2% bachelor's+), and premium rental rates that can offset higher property taxes (2.79%).
Cornell University generates $450M in annual student spending with 26,000 students, while Ithaca College adds additional demand. The elite university market supports premium rental rates and maintains consistently low vacancy rates.
Yes, Ithaca has a designated Opportunity Zone in the downtown area, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by Cornell University (Ivy League research institution), Ithaca College, healthcare systems, research activities, and tourism ($78M visitor economy), providing stability and growth.
New York has high property taxes (2.79% vs. 1.02% national) and 0.4% state transfer tax, but Ithaca's elite university market, exceptional appreciation potential, and premium rental rates can provide strong returns despite higher tax costs.