VIEWPOINT: Is ICE Buying a Facility in the Hudson Valley?

Rey Hollingsworth Falu • March 3, 2026
ICE changes its mind. In early February ICE reported that they would purchase a former Pep Boys auto parts distribution warehouse in Chester to open a detention center. One week later they told New York State Assemblyman Brian Maher (R-C-101st District) from Walden, that they changed their mind and that “its review process had concluded and that the agency would not be moving forward with the Chester site at this time.”

What would the impact of an ICE Detention facility be in the Hudson Valley? As real estate professionals, our job is not only to help clients navigate contracts and negotiations, but also to pay attention to the forces that shape our communities and, ultimately, our home values. An ICE detention center in the Hudson Valley would have ripple effects on buyers and sellers for years.

Chester is located in Orange County, which remains an active and evolving housing market. In January 2026, the median sales price for a single-family home rose to $490,000, up 3.2% from the prior year, as reported by OneKey® MLS. Closed sales increased 5.8% year-over-year, while days on market decreased to 61 days, down nearly 13%. Inventory for single-family homes dipped slightly in the month, but was up more than 11% over the rolling 12-month period. These figures show a market that is steady, competitive, and still attractive to buyers seeking value outside of Westchester. Stability and predictability are key components of that continued momentum.

Our region is home to nearly one million residents, making it the largest area in New York State outside of New York City and Long Island. It is diverse, economically vibrant and strategically located at the center of the Tri-State Area. The introduction of a federal detention facility into this community would shift public perception overnight. Even if property values do not immediately decline, uncertainty alone can slow buyer decision making, lengthen days on market, and increase negotiation pressure. In a market where sellers currently benefit from strong positioning, that shift matters.

Beyond market mechanics, there is also a broader policy question. New York is committed to fair housing and anti-discrimination protections. Fair housing laws prohibit discrimination based on race, national origin, citizenship or immigration status and many other protected characteristics. Realtors are required to uphold these protections and promote access to housing without bias. An ICE facility tied to immigration enforcement can heighten fear and instability within communities that are already sensitive to issues of status and access. That climate can discourage households from entering the market, renting, buying, or investing, even when they are legally entitled to do so.

If lawmakers believe that detention facilities are inconsistent with state priorities, then legislation should be considered that restricts the purchase or operation of such facilities within state borders. This could include zoning level restrictions, state level oversight before federal detention operations can be established, or limitations on contracts between local entities and federal immigration authorities. Clear policy guidance would reduce uncertainty for municipalities and property owners alike.

This is not about partisanship. It is about predictability, community identity and protecting the stability that underpins a healthy housing market. When buyers invest hundreds of thousands or millions of dollars into a home, they are investing in a vision of the community’s future. Sudden shifts in land use that carry social and political weight can disrupt that vision.

Realtors believe in protecting both property values and the inclusive character that makes the Hudson Valley strong. Our communities, with our lawmakers, need to come together to decide how policy decisions affect our neighborhoods, our buying power or our region's long-term equity.

About the author: Rey Hollingsworth Falu is the 2026 President of the Hudson Gateway Association of Realtors.
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