Category Archives: Economic Outlook 2026

By Assemblymember Carrie Woerner, 113th Assembly District

When asked to offer my perspective on trends in New York’s economy, I will say upfront that I am bullish on New York’s economy, and on our part of the Upstate economy particularly.  Which is not to say that there are not challenges we must confront and solve, but I am convinced that we have the necessary mix of talent, energy and commitment among the private and public sector to realize the potential that is 2026. 

The groundwork was laid for growth in 2026 with significant private sector investments in semiconductor and biomedical manufacturing, supply chains, and logistics.  Traditional industries like agriculture are also seeing investment with Chobani’s plans to construct a significant new production plant requiring milk from 1500 more cows that we currently have in the state.   Tourism remains a strong component of the upstate economy, and certainly Saratoga Springs and Lake George both had strong summer seasons. The start of the 250th Commemoration of our nation’s founding will drive heritage tourists to our area. While we don’t yet have the statistics for 2025, the number of small business openings exceeded the number of closings in 2024; as small businesses are the source of 98% of jobs statewide, this is a truly positive sign that our economy is strong.  In last year’s state budget, the Legislature and the Governor allocated funds to pay off the residual pandemic unemployment insurance debt to the federal government. That change is anticipated to save businesses about $250 per employee this year – dollars that businesses can now invest in growing their business.    

By State Sen. James Tedisco,  R–Glenville, 44th District

New York has an affordability problem.  We all know it.  

After being part of the problem for many years, it has finally dawned on our Governor that people can’t afford to live here.

It’s no wonder people are escaping New York in droves, leading the nation in out-migration.

Our previous governor blamed the exodus on the weather.  

Remember the 1990s hit “Blame it on the Rain”? We may get our share of precipitation in New York, but when 16 percent of people fleeing our state head for the “warm and balmy” state of New Jersey, you can’t credibly “blame it on the rain!”

One of my all-time favorite movies is the film classic “Casablanca” with Humphrey Bogart, Ingrid Bergman and Claude Rains, among a stellar cast.  

In a famous scene from the film, Claude Rains’ character, Captain Renault, expresses his mock outrage that there is gambling taking place at Humphrey Bogart’s establishment, saying “I’m shocked, shocked to find there’s gambling going on in here” as someone hands him his gambling winnings!

I was shocked that the Governor attempted to illustrate that she was “shocked” when she came out after being in charge for five years having super majorities in both houses and suddenly saying that we have an affordability problem in New York State!  

By J. Gregory Connors, President, CEO, Saratoga Economic Development Corporation

Building on the economic development investments, job creation, and job retention successes achieved in 2025, Saratoga Economic Development Corporation is positioned to expand that momentum in 2026. Saratoga County offers a strong product to market and promote and is recognized across the region, state, nation, and world for its blend of history, thriving communities, one of the lowest tax structures in the state, and a collaborative, cooperative environment among government, business, and community development stakeholders.

The county’s labor market is expected to remain strong, continuing the momentum of recent years. The Capital Region benefits from a diverse workforce, low unemployment compared to state averages, and a growing population. Job growth is projected to continue in healthcare, tourism, advanced manufacturing, agriculture, and the equine industries. Continued investment in workforce development will be critical, with local educational institutions and training programs playing a key role in preparing residents for emerging full-time job opportunities.

Several key sectors are expected to drive economic growth. The healthcare sector is anticipated to expand, fueled by population growth and aging demographics. New facilities under construction and in the planning stages, combined with ongoing innovation, are expected to create additional jobs and attract new investment. Advanced manufacturing and technology will remain a major economic driver, supported by the county’s proximity to high-tech corridors, the presence of GlobalFoundries in Malta/Stillwater, and a growing network of related supply-chain businesses.

Tourism and hospitality will continue to be a cornerstone of the local economy. Internationally recognized attractions such as Saratoga Race Course, Saratoga Performing Arts Center, and Saratoga National Historical Park—playing a role in the nation’s 250th anniversary—will continue to draw visitors from around the world. The hospitality industry is expected to expand further, supported by increased travel demand and tourism-related spending. Agriculture and the equine industry also remain vital, with local farms adopting sustainable practices and agritourism initiatives that support rural economic vitality.

By Steve Luttman, broker/owner of SJ Lincoln Realty

Depending on who you ask, 2025 was either a step forward financially, or two steps back. The past twelve months shone a light on the existence of two very different economies within the United States. Asset prices continued their upward trajectory, with stock indexes, precious metals and cryptocurrencies reaching new highs. For those on the other end of the economic spectrum, stubbornly high inflation and rising unemployment disproportionately impacted the middle class and below. GDP remained solid, supported by strong consumer spending and A.I. data center build out. The job market began to show signs of weakness, as both the unemployment rate and the number of long term unemployed increased sharply towards year end.

The Federal Reserve experienced a uniquely noisy year including surprise resignations and allegations of fraud. Housing price growth moderated, experiencing a slight uptick versus the year prior. Mortgage rates spent most of the year trending downwards, albeit double where we were just five years ago. Home sales experienced back to back lackluster years, with affordability concerns and many not willing to give up their existing low rates hindering transaction volumes.

As we begin 2026, a theme for the year has already started to emerge: Affordability. The newly sworn in Mayor of NYC ran on a platform heavily focused upon the high cost of living. This is not a uniquely metropolitan problem however. A recent survey by Resume Now found only 12% of workers reported their wages have kept up with inflation. Goldman Sachs’ Q4 report on housing found the nationwide home price-to-income ratio to be at historic highs. 

Various policies to address housing insecurity have been proposed which include freezing rents, banning investor purchases as well as a resumption of quantitative easing in the mortgage backed securities market. Governor Hochul’s plan to mandate local housing construction failed in large part due to opposition from municipalities over the fears of what comes with higher density. Recent legislation in Albany legalized Accessory Dwelling Units (ADUs) with offering property tax exemptions for their construction.