Real Estate

With its strong economy, vibrant communities, and unparalleled quality of life, Long Island continues to be a desirable destination for individuals and businesses seeking to live, work, and thrive in one of the most dynamic regions in the United States.
With its strong economy, vibrant communities, and unparalleled quality of life, Long Island continues to be a desirable destination for individuals and businesses seeking to live, work, and thrive in one of the most dynamic regions in the United States.

Long Island’s real estate market remains one of the most resilient and expensive in the nation, with Nassau County median home prices reaching $850,000 and Suffolk County hitting a record $700,000 as of July 2025. This represents a 6.4% increase year-over-year in Nassau and a 7.1% increase in Suffolk, demonstrating the continued strength of the Long Island housing market despite broader economic headwinds.

The region continues to experience a seller’s market characterized by low inventory, quick sales, and strong price appreciation. Homes are selling within 24-25 days on average in both counties, indicating sustained buyer demand despite rising interest rates and affordability challenges.

County-by-County Analysis

Nassau County Real Estate Market

Nassau County remains the more expensive of Long Island’s two counties, with several key characteristics:

Pricing Dynamics:

  • Median home price: $850,000 (July 2025)
  • Price per square foot: $514
  • Annual appreciation: 6.4% year-over-year
  • Price range: Typical homes range from $600,000 to over $2 million in premium areas like Garden City and Great Neck

Market Activity:

  • 986 homes sold in July 2025, up from 963 the previous year
  • Average days on market: 24 days, compared to 23 days last year
  • Sale-to-list price ratio: 101.0%, indicating homes are selling at or slightly above asking price

Geographic Premium Areas:
Nassau County’s proximity to New York City drives higher prices, particularly in established communities like Garden City, Great Neck, Mineola, Westbury, and Baldwin. These areas benefit from excellent school districts and convenient commuter rail access.

Suffolk County Real Estate Market

Suffolk County offers relatively more affordable options while still experiencing strong appreciation:

Pricing Dynamics:

  • Median home price: $700,000 (July 2025) – a record high
  • Price per square foot: $393
  • Annual appreciation: 7.1% year-over-year
  • Geographic diversity: Prices range from $429,000 in Ridge to $3.5 million in Southampton

Market Activity:

  • 1,255 homes sold in July 2025, down from 1,336 the previous year
  • Average days on market: 25 days, compared to 23 days last year
  • Growing demand: Suffolk has seen a 9.4% home value increase over the past year

Emerging Hotspots:
Suffolk County is experiencing growth in towns like Huntington, Smithtown, Babylon, Patchogue, and areas of the North Fork, driven by buyers seeking more space and value compared to Nassau County.

Property Tax Landscape

Long Island is notorious for having some of the highest property taxes in the nation, which significantly impacts affordability and total cost of ownership:

Tax Rates by County

  • Nassau County average: 2.24% of assessed value
  • Suffolk County average: 2.37% of assessed value
  • National average: 1.02% for comparison

Tax Bill Examples

For a $500,000 home:

  • Nassau County: approximately $11,200 annually
  • Suffolk County: approximately $11,850 annually

These high rates are driven by extensive funding for local school districts, municipal services, police, and fire departments. Long Island has 125 school districts across both counties, with property taxes serving as the primary funding mechanism.

School District Impact

Quality school districts significantly affect property values on Long Island. Homes in highly-rated districts tend to:

  • Sell 8 days faster than average
  • Receive 26% more listing views than typical properties
  • Command premium prices due to educational reputation

The Long Island market faces persistent inventory shortages:

  • Total listings: 6,392 homes available at the end of June 2025
  • Inventory decline: 5% below year-ago levels
  • Market conditions: Continued seller’s market with limited supply driving competition

Sales Volume Trends

Despite strong prices, sales volume has declined:

  • Q2 2025 sales dropped 10.6% year-over-year
  • Affordability constraints are limiting buyer activity
  • Higher mortgage rates (6.5-7% range) are reducing purchasing power

Remote Work Impact

The shift to remote and hybrid work arrangements has significantly influenced Long Island real estate:

Buyer Preferences:

  • Dedicated office space or flexible floor plans
  • Outdoor areas – balconies, patios, yards
  • Walkability to amenities while maintaining suburban feel
  • Reliable internet infrastructure for home offices

Popular Remote Work Communities:

  • Huntington: Waterfront views with urban conveniences
  • Port Washington: Harbor community with LIRR access
  • Patchogue: South Shore lifestyle destination

Investment Opportunities

Multifamily Properties

Long Island presents opportunities in multifamily real estate investment:

  • Current median listing price: $898,000 for multifamily properties
  • 126 multifamily homes currently for sale
  • Strong rental demand driven by high homeownership costs

Notable Recent Development:
The Shoregate in Bay Shore represents the luxury multifamily market, featuring 418 units with $140 million in financing secured in 2025. The property achieved 95% occupancy within six months of opening.

Luxury and High-End Markets

The Hamptons continue to represent the premium segment:

  • Average luxury home price: $4.9 million
  • Price range: $495,000 to $99.5 million
  • 892 luxury listings currently available

Senior Housing Segment

Long Island has a rapidly growing senior housing market:

  • Multiple 55+ communities in development
  • Life Plan Communities like Jefferson’s Ferry and Peconic Landing
  • Entry fees starting at $450,000 for premium communities

First-Time Homebuyer Programs

Several programs exist to assist first-time buyers in overcoming Long Island’s high entry costs:

Nassau County Programs

  • Down Payment Assistance: up to $25,000 for qualifying buyers
  • Income limits: Vary by family size, up to $142,500 for a family of five
  • Minimum down payment: 3% required from buyer

Suffolk County Programs

  • Brookhaven Town Program: up to $50,000 in assistance
  • 10-year residency requirement to avoid repayment
  • First-come, first-served application process

State and Regional Programs

  • Community Housing Innovations: Grants up to $60,000
  • SMART Move NY: Low-interest loans up to 20% of purchase price

Real Estate Commission Structure

Long Island real estate transactions typically involve:

  • Total commission: 5-6% of sale price
  • Commission split: 50-50 between buyer and seller agents
  • Negotiability: Rates are negotiable, with some agents accepting 4-5%

Short-Term Outlook (2025-2026)

Market indicators suggest:

  • Continued price appreciation at a slower pace than recent years
  • Modest inventory increases as more sellers enter the market
  • Interest rate stabilization in the low-6% range

Growth Drivers

  • Remote work permanence supporting suburban demand
  • New York City proximity maintaining appeal for hybrid workers
  • Limited new construction keeping supply constrained

Potential Challenges

  • Affordability crisis limiting first-time buyer access
  • High property taxes creating ongoing cost burden
  • Interest rate sensitivity affecting buyer purchasing power

Infrastructure Investment

Long Island benefits from ongoing infrastructure improvements:

  • LIRR extensions and upgrades improving commuter access
  • Transit-oriented development around rail stations
  • Road and highway maintenance supporting regional connectivity

Zoning and Development

  • Mixed-use development encouraged in downtown areas
  • Multifamily zoning limited but expanding in select municipalities
  • Historic preservation restrictions in established communities

Long Island’s real estate market remains fundamentally strong despite affordability challenges. The region’s combination of suburban lifestyle, proximity to New York City, excellent schools, and natural amenities continues to drive demand from both residents and investors. While high prices and property taxes present barriers, the market’s resilience, supported by limited inventory and diverse economic opportunities, positions Long Island real estate as a stable long-term investment.

The divergence between Nassau and Suffolk Counties offers opportunities for different buyer segments, with Nassau commanding premium prices for proximity and prestige, while Suffolk provides relative value with room for appreciation. Remote work trends, infrastructure investments, and demographic shifts will likely continue shaping the market through 2026 and beyond.

For potential buyers and investors, understanding local market dynamics, tax implications, and financing options remains crucial for successful real estate transactions in this high-cost but potentially rewarding market.

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