Prices, Inventory and Demand: Rochester Market Trends with David Dollinger

Real estate attorney Dave Dollinger returns to Rochester Living for a comprehensive breakdown of the current housing market. With decades of experience navigating real estate transactions across Western New York, Dollinger offers a unique, ground-level perspective on what buyers, sellers, and agents are actually facing in today's climate. His insights move beyond national headlines to focus squarely on the realities of the Rochester, NY market.

Top Industry Challenges in 2026

Dollinger opens with a candid assessment of the biggest challenges facing the real estate industry today. He notes that the market is still adjusting to the aftershocks of the pandemic, shifting interest rates, and evolving regulatory environments. For both buyers and sellers, the landscape has become increasingly complex, requiring a more sophisticated approach to transactions. He emphasizes that the days of simply putting a sign in the yard and waiting for multiple offers are largely behind us, replaced by a need for strategic pricing, careful preparation, and expert legal guidance.

Furthermore, Dollinger highlights the increasing importance of understanding local zoning laws, property taxes, and environmental regulations. As the Rochester area continues to develop and change, these factors play a crucial role in determining property values and the feasibility of new projects. Buyers must be more diligent than ever in their due diligence, while sellers need to ensure their properties are fully compliant and ready for the market.

The Persistent Inventory Shortage

The central challenge in Rochester real estate right now is a persistent lack of inventory. Dollinger explains that many homeowners who locked in historically low mortgage rates over the past decade are reluctant to sell, creating a bottleneck in the market. This 'lock-in effect' has significantly reduced the number of available homes, driving up competition and prices for the limited inventory that does hit the market.

This shortage is particularly acute in the entry-level and mid-tier segments, where demand remains incredibly strong. First-time homebuyers are finding it increasingly difficult to break into the market, often facing bidding wars and the need to waive contingencies to be competitive. Dollinger discusses the ripple effects of this shortage, including the impact on rental markets and the growing interest in new construction and alternative housing solutions.

Migration Into Rochester

One of the more striking themes of the episode is the growing trend of migration into the Rochester area. Dollinger notes an influx of buyers from higher-cost markets, drawn by Rochester's relative affordability, strong job market, and high quality of life. This demographic shift is changing the dynamics of local neighborhoods and introducing new expectations and preferences into the market.

These new arrivals are often looking for properties with specific amenities, such as home offices, outdoor living spaces, and proximity to cultural and recreational attractions. Dollinger discusses how this influx is driving demand in certain suburbs and revitalizing parts of the city center. He also touches on the challenges and opportunities this migration presents for local infrastructure, schools, and community services.

Technology and AI in Real Estate

The conversation turns to how technology is reshaping the real estate transaction process. Dollinger discusses the increasing use of artificial intelligence and digital tools in everything from property searches and virtual tours to contract analysis and closing procedures. While these technologies offer significant benefits in terms of efficiency and convenience, he cautions that they cannot replace the nuanced understanding and personalized advice of experienced professionals.

He emphasizes the importance of balancing technological innovation with human expertise. AI can streamline administrative tasks and provide valuable data insights, but navigating the legal and emotional complexities of a real estate transaction still requires a human touch. Dollinger advocates for a hybrid approach, where technology empowers professionals to deliver better service and more informed guidance to their clients.

The Buyer Journey Today

For buyers entering the Rochester market in 2026, the journey requires patience, preparation, and a strong team. Dollinger outlines the essential steps for success, starting with securing pre-approval and understanding the true costs of homeownership. He advises buyers to be realistic about their budgets and to prioritize their needs versus their wants in a highly competitive market.

He also stresses the importance of working with knowledgeable real estate agents and attorneys who understand the nuances of the local market. A strong team can help buyers navigate bidding wars, negotiate favorable terms, and avoid costly pitfalls. Dollinger shares practical advice on how to stand out as a buyer, including the strategic use of escalation clauses and the importance of flexibility and responsiveness.

Building Trust in Real Estate

The episode closes on a theme that runs through everything Dollinger discusses: the critical importance of trust. In an industry where transactions involve significant financial and emotional stakes, building and maintaining trust is paramount. He emphasizes the need for transparency, clear communication, and ethical conduct among all parties involved in a real estate transaction.

Dollinger reflects on his own career and the values that have guided his practice. He believes that the most successful real estate professionals are those who prioritize their clients' best interests and work collaboratively to achieve positive outcomes. Ultimately, a strong real estate market is built on a foundation of trust, integrity, and a shared commitment to the community.

Watch or Listen

Episode 237 is available now on YouTube and on all major podcast platforms.