Hi Thom123,
Rochester NY has the most potential out of all the cities in Western NY. I moved to Rochester from Watford, Hertfordshire, UK in July, 2007 and I'm very optimistic about the housing market's future. I'm optimistic because of three reasons:
1) A high-tech industry is developing to support the city's medical industry, which means more job growth in the future.
2)The new Mayor, Robert J. Duffy, is currently re-building some of the city's rough neighborhoods through his Focused Investment Strategy.
3)Developers are begining to realize the investment potential of a city with three universities, University of Rochester, St. John Fisher College and Rochester Institute of Technology. New student accomodation, hotels and shops are springing up in the 19th Ward, aka Brooks Landing Project.
One more reason to be excitied is that Rochester hardly ever experiences speculative property excess. Capital growth is normally between 3-8% depending on the condition of the market. So while states like California, Nevada, Florida and Arizona are experiencing 20%+ depreciation, Rochester is still at 3%. However all the investment activity I mentioned above could change this over the next 10yrs.
One note of caution is to be very careful about which neighborhood you invest in. Rochester like any other city has bad areas and good areas. Location is often what determines how costly or cheap property management will be in the long term. For more info on Rochester visit http://www.cityofrochester.gov/. I wish you well in all your endeavors.
Emmanuel
www.XenonREI.com