Despite these increases, prices remain broadly affordable to the typical Sullivan County household

With an average sale price of $232,300 countywide during 2020-2021, and an average price range of $150,000 to $300,000 in most municipalities, prices in Sullivan County remain well below national levels. Nationally, median prices pushed above $350,000 during 2021.

Current typical prices in Sullivan County are affordable to households that make between $50,000 and $100,000 based on the rule of thumb that a household can afford a home that is priced at 3x the household's annual income.

The median income in the county is $60,400 and the average income is $81,400.

Source: Analysis of arms-length, single-family sales data from NYS SalesWeb and income data from the American Community Survey (2020 5-Year Estimates)

Taxes, energy costs, and long-overdue repairs are factors that stress existing owners and may keep future buyers away

Due to a small tax base, the property tax burden on residential property in Sullivan County tends to be high. This is especially true in the villages of Liberty and Monticello where county, town, village, and school taxes add up to an effective property tax rate of 5% to 6% of a property's assessed value. This means that a home valued at $120,000 in these villages pays upwards of $7,000 per year in property taxes. In most areas of the county outside of these villages, the effective tax rate is closer to 3%, which equates to taxes of around $4,000 each year on a $120,000 house.

On top of taxes, the county’s reliance on fuel oil is becoming more costly, and the eventual costs of transitioning to electric and other alternatives will be expensive.

High levels of deferred maintenance exacerbate energy costs and dampen the appeal of the county’s housing stock.

Source: Analysis of county, municipal, and school tax rates across Sullivan County; energy sources for heating from American Community Survey (2020 5-Year Estimates); windshield survey of exterior housing conditions during April 2022

The housing supply for permanent residents is constrained by seasonal and other users

44% of all housing units (owner-occupied and rental) in Sullivan County are not permanently occupied—a legacy of the county’s history as a vacation spot and a place for second homes.

34% of all units are used seasonally, or for recreational purposes.

7% of all units are chronically vacant and off the market—likely due to poor condition.

Source: American Community Survey (2020 5-Year Estimates)

Rents in the county are relatively low, but there are many renters who are cost burdened

The median gross rent in Sullivan County, which includes utility costs, was $886 in 2020. This was 33% lower than median rents statewide and 19% lower than rents nationwide.

At the same time, there were 1,995 renters in Sullivan County who earned less than $20,000 in 2020 and were cost-burdened—paying more than 30% of their incomes on rent.

Overall, there were 3,630 renters who paid more than they could afford for their housing in 2020, and 82% of those renters earned less than $35,000.

Source: American Community Survey (2020 5-Year Estimates)

There are very few new and appealing rental opportunities for workers that businesses and institutions are trying to attract and retain

Not only are existing rental properties in generally poor condition, but very few rental units have been built in recent years due to soft market conditions, lack of infrastructure, or zoning restrictions.

This, along with challenges in the county’s market of owner-occupied housing, makes it more difficult to attract and keep some segments of the workforce.