Long Island real estate has recently experienced a surge in new supply. Despite increased supply and waning demand due to high mortgage interest rates, Long Island home prices defied records in July.
Rising home prices have many homeowners wondering whether they should risk the market. After all, the alternative is building a custom home, which is many a homeowner’s dream.
We want to help you make the right decision, whether you plan to live in the home or use it as an investment. Keep reading this guide to learn more about the current state of real estate in Long Island.
The Most Desirable Long Island Neighborhoods
Long Island is a great place to call home, whether you are looking for somewhere to raise a family, retire, or live close to your job. An outdoor enthusiast’s haven, the area is home to beautiful beaches and lush parks.
North Haven is the best area to live in if you have money to spend. The neighborhood has an average home value of almost $6 million. Other luxury areas to check out are Cold Spring Harbor, Great Neck, and Baxter Estates.
On the more affordable side of things are neighborhoods like Ronkonkoma and Islip. Both neighborhoods are close to the beach yet boast average home values of less than $500,000.
The Cost to Buy vs. Build Long Island Real Estate
There are many factors that go into the choice of buying vs. building. These factors include moving timelines, property values, and location. However, most Long Island home buyers want to know about the cost of building or buying.
It is estimated that building a new home on Long Island costs $200 to $250 per square foot. This is the cost of materials and labor, not land. In New York, the median cost per acre of land is $12,027, meaning some properties will cost less and others much more.
Compare that to the median listing home price per square foot. In August 2023, that price was $455 on Long Island.
Long Island Property Values
When you buy or build a Long Island home, you want to know that your investment will pay off in the long run. Luckily, experts expect the market to see a 12.4% growth rate between now and 2030.
This is due, in part, to expectations that real estate supply will stagnate over the next few years. There is only so much room to build on the island. And demand for properties is growing fast.
Rising property values, coupled with increasing demand and dwindling supply, will put Long Island homeowners and property investors in a good position. It is crucial to act now to buy or build your Long Island dream home.
Buying a Home on Long Island? Consider a Custom Build Instead
Long Island real estate is in a period of change. Home values and demand may be high and supply low now. But expect these issues to worsen over the coming years, making now the best time to invest in the market.
Are you looking for a better way to get your dream home on Long Island? Prestige Custom Building and Construction is in the business of building homes that fit with you and your lifestyle. Contact us for a free consultation to get started.