{"id":41242,"date":"2026-01-20T15:32:34","date_gmt":"2026-01-20T20:32:34","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/?p=41242"},"modified":"2026-01-20T15:32:34","modified_gmt":"2026-01-20T20:32:34","slug":"economic-outlook-2026-a-more-balanced-market-takes-shape","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2026\/01\/economic-outlook-2026-a-more-balanced-market-takes-shape\/","title":{"rendered":"Economic Outlook 2026: A More Balanced Market Takes Shape"},"content":{"rendered":"
\"\"
Tom Roohan is owner of Roohan Realty in Saratoga Springs.
Courtesy Roohan Realty<\/figcaption><\/figure>\n

By Tom Roohan,\u00a0Owner of Roohan Realty in Saratoga Springs<\/p>\n

Looking ahead to 2026, the real estate market\u2014both residential and commercial\u2014is settling into a more balanced rhythm after several years of dramatic swings. Here in Saratoga County and across the Capital Region, where people choose to live and where small businesses choose to locate are more closely connected than ever. At Roohan Realty, with a residential team of roughly 50 agents and a small commercial team focused on local businesses, we see this relationship play out daily.<\/p>\n

Residential Market: Steady Demand, More Opportunity<\/p>\n

Nationally, experts expect mortgage rates to ease slightly in 2026, improving affordability and encouraging more buyers to re-enter the market. Existing home sales are projected to increase, while price growth is expected to remain modest\u2014likely under 2% nationally. Locally, Saratoga County continues to experience strong demand.<\/p>\n

With median home prices hovering around $435,000, homes are still moving quickly, particularly in desirable neighborhoods. As more millennials reach prime homebuying age and many homeowners choose to renovate rather than relocate, we expect steady activity in both home sales and improvement projects. Kitchen and bathroom renovations, along with energy-efficient upgrades, remain popular, allowing homeowners to modernize while keeping neighborhoods vibrant. For buyers, 2026 should feel like a market with more choices and less pressure than in recent years.<\/p>\n

Commercial Market: Local Businesses Lead the Way<\/p>\n

<\/span><\/span><\/b><\/span><\/span>Commercial real estate is also finding its footing, especially at the local level. While office demand continues to adjust to hybrid work patterns, small retail and service businesses remain a major driver of economic activity in our region. In Saratoga County, independent restaurants, shops, and locally owned services aren\u2019t just filling space\u2014they\u2019re shaping neighborhoods and influencing where people want to live.<\/p>\n

Over the past year, we\u2019ve seen strong momentum across the county. In 2025, an escape room opened at 63 Putnam Street, adding another experiential destination downtown. Noah\u2019s Italian, which opened on December 2 at 43 Phila Street, completed major interior renovations and has quickly built a strong following, earning outstanding reviews for both its food and atmosphere. Just a block up the street closer to Broadway, Standard Fare also underwent significant renovations, transforming the space into a chic dinner-and-drinks destination that continues to draw steady interest.<\/p>\n

New openings are adding to the area\u2019s energy as well. Elody Bar opened two weeks ago on Phila Street, contributing to the growing dining and nightlife scene, while HI-note is set to open soon on Putnam Street, further strengthening the downtown corridor.<\/p>\n

Ownership and leasing activity have been equally notable. High Peaks Canna Inc. purchased its location at 137 Maple Avenue, and a property on West Avenue was sold and will soon become a cannabis dispensary. On South Broadway, Tru Cutz Barber Shop is relocating and is expected to open in the coming month, supporting continued<\/p>\n

revitalization along that corridor. One of the year\u2019s larger local transactions was the sale of Gaffney\u2019s, which closed just a week before the New Year and was sold by Dan Roohan, marking a significant moment for the famous Caroline Street.<\/p>\n

Beyond small business growth, major employers are also shaping the region\u2019s future. Regeneron recently purchased the former Quad Graphics site, where it plans to invest more than $2 billion and create 1,000 new permanent jobs. This development will have a lasting impact on housing demand, infrastructure, and the broader local economy.<\/p>\n

With the exception of Regeneron, a Roohan Realty agent represented the buyer, seller, or tenant in each of these transactions\u2014a point of pride for our team as we continue supporting local entrepreneurs and helping people turn their goals into reality.<\/p>\n

How Residential and Commercial Markets Connect<\/p>\n

The relationship between people and businesses is a two-way street. Growing neighborhoods attract restaurants, shops, and services to meet local needs. At the same time, vibrant commercial corridors make neighborhoods more appealing, driving residential demand. Jobs remain the foundation\u2014areas with stable employment and economic growth attract both residents and businesses, creating a healthy cycle of development.<\/p>\n

At Roohan Realty, our dual perspective\u2014tracking where buyers move and where small businesses open\u2014allows us to guide clients on both sides of the market. Understanding these patterns helps us anticipate change rather than simply react to it.<\/p>\n

Looking Ahead<\/p>\n

2026 is shaping up to be a year of steady growth and opportunity. Residential activity should remain healthy, particularly in neighborhoods supported by strong local businesses. Small commercial spaces will continue to play a vital role in supporting community life and influencing where families choose to live.<\/p>\n

For agents, owners, and investors, the takeaway is clear: local knowledge matters more than ever. By paying attention to both residential trends and small business activity, smarter decisions can be made\u2014whether buying a home, leasing a storefront, or planning future development.<\/p>\n

At the end of the day, Saratoga is thriving because people and businesses grow together. 2026 offers an opportunity to lean into that synergy and help our communities grow stronger\u2014one home and one business at a time.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Tom Roohan,\u00a0Owner of Roohan Realty in Saratoga Springs Looking ahead to 2026, the real estate market\u2014both residential and commercial\u2014is settling into a more balanced rhythm after several years of dramatic swings. 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