The Long Island real estate market has been experiencing a remarkable upswing during the first half of this year. According to recent data from real estate firm Douglas Elliman and appraisal company Miller Samuel, by the end of June 2024, the median prices for single-family homes, condominiums, and cooperative apartments rose by 11.7% compared to the same period last year, reaching a historic high of $670,000. Experts attribute this surge in prices primarily to the imbalance between supply and demand following the COVID-19 pandemic, with high buyer demand and insufficient market supply leading to a rapid increase in home prices.
Interestingly, these statistics do not include luxury areas like the Hamptons. However, within the surveyed regions, the growth trend is particularly pronounced in six locales with significant Chinese communities, notably Great Neck. This area boasts a diverse real estate market that ranges from mansions in Kings Point to condominiums in Great Neck Plaza. Data from Miller Samuel indicates that the median home price in Great Neck reached $930,000 in the first half of 2024, a staggering 35.8% increase from the $685,000 reported in the same period of 2023.
In addition to Great Neck, Manhasset and Franklin Square in Nassau County have emerged as hotspots for rising home prices. In Manhasset, the median price hit $2 million in the first half of 2024, up 31.8% from $1.518 million in the prior year. Similarly, Franklin Square’s median price soared to $767,000, a 17.5% increase from $653,000 year-over-year.
Odeta Kushi, Deputy Chief Economist at First American Financial Corp, noted that Nassau County’s housing supply situation differs from national trends, remaining tight largely because many homeowners retain low mortgage rates from before the pandemic, opting not to sell. She explained that the combination of limited supply, scarce new construction, and robust demand remains the main driver of rising prices. If the number of buyers continues to increase without a corresponding rise in available homes, we may see even faster price escalations.
Outside of Nassau County, Suffolk County, particularly areas like East Patchogue, Amityville, and Middle Island, is also among the fastest-growing in terms of home prices. East Patchogue saw its median price reach $535,000, a 23% increase from $435,000 a year earlier, while Amityville and Middle Island also recorded price increases exceeding 20%. These regions are similarly grappling with significant supply shortages, which contribute to escalating home prices.
