Tired of Rising New York City Rents? The Hudson Valley Is Becoming the New Homeownership Hot Spot

The dream of living in New York City is a costly one, with residents weighed down by skyrocketing monthly payments.

The Big Apple was one of the markets with the steepest rent declines during the COVID-19 pandemic, but that's no longer the case with monthly rents now rising even higher than pre-pandemic levels, according to the latest Realtor.com® New York City Rental Report.

In the third quarter of 2025, median rents increased by $185 across all five boroughs. Overall, the median asking rent in the borough of Manhattan is $4,747—that's up $267 year over year.

The report reveals that New Yorkers looking to leave the city, but wanting to remain within commuting distance to the metro area, are shopping for homes in New Jersey and Pennsylvania, or heading north of Manhattan to the Hudson Valley.

"New York City rents are expensive, and the competition to even get an affordable one is fierce. We are still seeing people make the shift farther north, and there has been no slowdown on that front," Jillian Pajer of the Oliveira Pinkas Team at Douglas Elliman tells Realtor.com.

Pajer, who sells real estate in the Hudson Valley, understands why people are drawn to the area.

"It’s hard to capture what makes the Hudson Valley so special in just one sentence. To me, it’s the perfect balance of nature, culture, and ease," she says.

That combination is a magnet for Manhattan residents ready to invest their money in a home where they have more space and easy access to the great outdoors.

"The increasing rents in New York City continue to pose affordability challenges for renters," explains Jiayi Xu, an economist at Realtor.com. "At New York City–level rents, relocating outside the city offers renters larger units, better amenities, more attractive neighborhoods, and even a path to homeownership."

Here's a breakdown of what it will cost to rent in New York City:

• In the third quarter of 2025, the median asking rent for a 0-2 bedroom was $3,581—marking an increase of $203 from the prior year.
• The median asking rent for larger units with three or more bedrooms was $4,948—a $49 increase year over year.

For a renter paying nearly $5,000 a month, that money will certainly go far in the suburbs.

"In 2025Q3, the rent-to-income ratio for a typical New York City renter is 56.7%, meaning more than half of their income goes toward housing," Xu says. "Combined with other living expenses such as groceries, transportation, and health care, this leaves very little room to build savings for a down payment or invest toward homeownership."

Hudson Valley is a hidden gem

While Hudson Valley used to be the country getaway, many New Yorkers are flocking north of the city and making it a full-time option.

"The Hudson Valley has gone from a 'weekend getaway' to a 'full-time lifestyle' for many New Yorkers," Geoffrey Green, broker/owner with Better Homes and Gardens Real Estate Green Team, tells Realtor.com. "Remote work opened the floodgates, and the region saw a surge in buyers seeking space, nature, and a sense of community. Inventory remains tight, especially for homes with historic charm or modern updates."

Realtor.com economists identified the top Hudson Valley cities viewed by Manhattan residents shopping for homes outside of the city in the third quarter.

While Westchester County, just north of the city, is a popular and easy commuting alternative, hidden gems such as Poughkeepsie (Dutchess County), Middletown (Orange County), and Kingston (Ulster County) were top Hudson Valley spots that piqued the interest of Manhattanites.

Hudson Valley is vast and stretches from Westchester County to Albany.

"Nestled between the Catskills and the Hudson River, it offers sweeping landscapes, charming towns, and a slower pace of life, all within striking distance of New York City," Green adds.

"Rail-served towns like Tarrytown, Peekskill, Beacon, and Cold Spring remain popular because they blend lifestyle with predictable travel," Jordan Vaccaro, real estate agent with Garay-Michaud Team at Serhant, explains to Realtor.com.

"Towns like Beacon, Rhinebeck, Hudson, and Kingston feel small and friendly yet deliver serious dining, galleries, and events. The heart of the Hudson Valley is under 90 minutes from New York City, which makes it a more convenient weekend retreat and an easy place to live full time than most alternatives," Vaccaro adds.

For the $4,747 in New York City rent, that monthly payment could get you a $675,000 four-bedroom home in Poughkeepsie set on 7 acres.

In Kingston, NY, $995,000 could score you a renovated Colonial Revival home located on what was once known as "Doctors Row." The home dates to 1896 and has four bedrooms and 3.5 baths nestled on a double-sized lot.

"The Hudson Valley blends natural beauty with real community. You get river and mountain views, trail systems, four true seasons, and a deep farm-to-table culture alongside world-class art, music, and design," says Vaccaro.

Convenience and charm are brimming in this $380,000 one-bedroom cottage in Garrison, NY, which offers cozy comfort set on an acre. It comes with exclusive lake rights to Cortlandt Lake and offers swimming, kayaking, and tennis. Bonus: It's only an hour from New York City.

Garrison and other cities along the Metro North rail line offer an easy getaway with direct access to Manhattan—a draw for city dwellers seeking more bang for their buck.