New York Luxury Housing Market Reaches All-Time High with $2.34M Median Price as Buyer Demand Soars
Cushman and Wakefield Global Brokerage Chairman Bruce Mosler analyzes the state of commercial real estate in New York City on ‘Mornings with Maria.’
The Hamptons housing market has recently made headlines, but the driving force behind this surge is not the typical homebuyer.
Instead, wealthy Wall Street and tech executives are fueling a boom in multimillion-dollar sales, pushing median prices to unprecedented levels, even as overall sales activity begins to soften, according to new data.
A recent report from Douglas Elliman and Miller Samuel reveals that Hamptons homes have reached a record median sales price of $2.34 million, marking a 25% increase year over year. The average sales price has also risen by 25% annually, now standing at $3.76 million.
Adam Hofer from Douglas Elliman stated, “The catalyst is absolutely tied to capital markets. The Hamptons has always been a discretionary, wealth-driven marketplace. When Wall Street performs, when liquidity events happen in tech, and when bonuses are strong, that money needs a place to land. For many high-net-worth buyers, that place is the Hamptons.”
MIAMI MOVES AHEAD OF NEW YORK IN $1M-PLUS HOMES AFTER NEARLY A DECADE
Hofer added, “This isn’t just a speculative spike. Inventory remains structurally constrained, especially south of the highway and in turnkey properties. Unlike the pre-2008 era, today’s buyers are largely cash-heavy and less leveraged, making this appreciation feel more sustainable.”
The sun shines on two beachfront homes located in the Hamptons, New York. (Getty Images)
“So yes, Wall Street momentum fuels the top end, but limited supply and long-term lifestyle demand are what’s keeping values elevated,” Hofer explained.
Luxury sales are significantly contributing to the Hamptons market, with sales over $5 million reaching a record high in the fourth quarter of 2025. Douglas Elliman’s internal data indicates that property closings over $10 million increased by 75% year over year, and there were four closings of $20 million or more in 2025, compared to just one the previous year.
Hofer noted, “The luxury buyer operates in an entirely different universe from the average homeowner. All cash transactions at $5 million and above signal confidence, liquidity, and a long-term mindset. These buyers are less sensitive to interest rates and more focused on lifestyle, legacy, and asset diversification.”
View of homes on Meadow Lane, Southampton, New York, on July 12, 2023. | Getty Images
In contrast, the middle market is highly rate-sensitive. A one-point swing in mortgage rates can dramatically impact affordability. However, when you’re writing an $8 million or $15 million check in cash, rate volatility becomes background noise,” he explained. “This highlights a divided market that’s becoming more pronounced nationally. Rate sensitivity is creating friction in the middle tier, while the top 10% of buyers continue to transact with relative ease. The Hamptons is simply a magnified version of what’s happening across the country.”
Inventory remains tight. Despite a slight increase in listings across the area in the fourth quarter of last year, months of supply fell to 6.8, down 24% from 2024, while luxury months of supply also declined sharply to 16.4 months.
Buyers are reportedly competing hardest for ocean and waterfront properties, as well as turnkey, renovated homes in prime neighborhoods such as Southampton, Sag Harbor, and East Hampton.
FOX Business’ Madison Alworth reports live from Brooklyn, detailing New York City landlords’ concerns regarding Zohran Mamdani’s proposed rent freeze plan and the impact of continuously rising property taxes.
Hofer remarked, “Construction timelines, labor costs, and permitting uncertainties have made move-in-ready product a premium commodity. Waterfront properties and those with protected water views continue to command outsized demand, and that’s where buyers are willing to stretch the furthest. There’s a finite amount of waterfront in the Hamptons, and sophisticated buyers understand that scarcity.”
While not fully captured in the report, the early summer rental surge aligns with the data, as buyers are committing earlier, luxury confidence remains high, and seven-figure demand shows no signs of slowing.
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Meredith Whitney Advisory Group CEO Meredith Whitney discusses the forces moving investors and traders on ‘Barron’s Roundtable.’
Hofer concluded, “Strong rental demand is often a leading indicator of buyer confidence. When high-end rentals lock in early and at premium rates, it signals that people want to be here and that the Hamptons lifestyle remains a priority.” He added, “For buyers waiting for a significant price correction, the rental market suggests that underlying demand hasn’t weakened. In fact, many renters ultimately convert to buyers after experiencing the market firsthand. Sitting on the sidelines in hopes of a dramatic pullback may mean competing later in an even tighter inventory environment.”
Cushman and Wakefield Global Brokerage Chairman Bruce Mosler analyzes the state of commercial real estate in New York City on ‘Mornings with Maria.’
The Hamptons housing market has recently made headlines, but the driving force behind this surge is not the typical homebuyer.
Instead, wealthy Wall Street and tech executives are fueling a boom in multimillion-dollar sales, pushing median prices to unprecedented levels, even as overall sales activity begins to soften, according to new data.
A recent report from Douglas Elliman and Miller Samuel reveals that Hamptons homes have reached a record median sales price of $2.34 million, marking a 25% increase year over year. The average sales price has also risen by 25% annually, now standing at $3.76 million.
Adam Hofer from Douglas Elliman stated, “The catalyst is absolutely tied to capital markets. The Hamptons has always been a discretionary, wealth-driven marketplace. When Wall Street performs, when liquidity events happen in tech, and when bonuses are strong, that money needs a place to land. For many high-net-worth buyers, that place is the Hamptons.”
MIAMI MOVES AHEAD OF NEW YORK IN $1M-PLUS HOMES AFTER NEARLY A DECADE
Hofer added, “This isn’t just a speculative spike. Inventory remains structurally constrained, especially south of the highway and in turnkey properties. Unlike the pre-2008 era, today’s buyers are largely cash-heavy and less leveraged, making this appreciation feel more sustainable.”
The sun shines on two beachfront homes located in the Hamptons, New York. (Getty Images)
“So yes, Wall Street momentum fuels the top end, but limited supply and long-term lifestyle demand are what’s keeping values elevated,” Hofer explained.
Luxury sales are significantly contributing to the Hamptons market, with sales over $5 million reaching a record high in the fourth quarter of 2025. Douglas Elliman’s internal data indicates that property closings over $10 million increased by 75% year over year, and there were four closings of $20 million or more in 2025, compared to just one the previous year.
Hofer noted, “The luxury buyer operates in an entirely different universe from the average homeowner. All cash transactions at $5 million and above signal confidence, liquidity, and a long-term mindset. These buyers are less sensitive to interest rates and more focused on lifestyle, legacy, and asset diversification.”
View of homes on Meadow Lane, Southampton, New York, on July 12, 2023. | Getty Images
In contrast, the middle market is highly rate-sensitive. A one-point swing in mortgage rates can dramatically impact affordability. However, when you’re writing an $8 million or $15 million check in cash, rate volatility becomes background noise,” he explained. “This highlights a divided market that’s becoming more pronounced nationally. Rate sensitivity is creating friction in the middle tier, while the top 10% of buyers continue to transact with relative ease. The Hamptons is simply a magnified version of what’s happening across the country.”
Inventory remains tight. Despite a slight increase in listings across the area in the fourth quarter of last year, months of supply fell to 6.8, down 24% from 2024, while luxury months of supply also declined sharply to 16.4 months.
Buyers are reportedly competing hardest for ocean and waterfront properties, as well as turnkey, renovated homes in prime neighborhoods such as Southampton, Sag Harbor, and East Hampton.
FOX Business’ Madison Alworth reports live from Brooklyn, detailing New York City landlords’ concerns regarding Zohran Mamdani’s proposed rent freeze plan and the impact of continuously rising property taxes.
Hofer remarked, “Construction timelines, labor costs, and permitting uncertainties have made move-in-ready product a premium commodity. Waterfront properties and those with protected water views continue to command outsized demand, and that’s where buyers are willing to stretch the furthest. There’s a finite amount of waterfront in the Hamptons, and sophisticated buyers understand that scarcity.”
While not fully captured in the report, the early summer rental surge aligns with the data, as buyers are committing earlier, luxury confidence remains high, and seven-figure demand shows no signs of slowing.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Meredith Whitney Advisory Group CEO Meredith Whitney discusses the forces moving investors and traders on ‘Barron’s Roundtable.’
Hofer concluded, “Strong rental demand is often a leading indicator of buyer confidence. When high-end rentals lock in early and at premium rates, it signals that people want to be here and that the Hamptons lifestyle remains a priority.” He added, “For buyers waiting for a significant price correction, the rental market suggests that underlying demand hasn’t weakened. In fact, many renters ultimately convert to buyers after experiencing the market firsthand. Sitting on the sidelines in hopes of a dramatic pullback may mean competing later in an even tighter inventory environment.”
