As families begin making plans for summer vacation, this is the time of year when we get a pulse on many second-home markets around the country: prices for buying, selling, and renting. It’s been a confusing time in real estate, especially in high-end regions such as Long Island’s East End, home to the tony Hamptons and the more rustic North Fork.
Consider, for example, that just last week a Southampton estate–a sprawling 11,000-square-foot property on 5.5 acres with 450 feet of waterfront–notched its price down by nearly a third. Yes, a third, from $52 million to $34 million. (Don’t worry, I still can’t afford it either.)
We talked to real-estate agent Melissa Principi with Douglas Elliman to make sense of spring and summer real-estate trends and what they portend for the remainder of 2025.
S. Mitra Kalita: The question of the moment: How are rentals going?
Melissa Principi: Rentals started off very strong for the 2025 summer seasonal as well as the limited year-round offers we had. Fall of 2024 into early winter 2025 brought strong rental numbers for the North Fork and Hamptons. Tenants seemed to be happy to pay higher summer rental rates for new construction homes with all the bells and whistles and within a short distance to beaches.
They also seemed to “book early” this year to secure the best locations. Newer homes that feature large bedrooms with en-suite bathrooms, new furniture with neutral linens, finished bonus spaces like basements or offices are important, and heated pools are a must-have to get top dollar.
Luxury rentals tend to go quicker on the North Fork; this location has less rental inventory in comparison to the South Fork (the Hamptons). The normally busy months of February and March have been sluggish as tenants seem to be waiting for the remaining over-priced rental listings to come down before they lock in for summer. Rental listings in Southold and Riverhead (in the North Fork) have increased 34% over the last three years!
SMK: How are sales going?
MP: Sales are strong! Home values are up year over year but are leveling out. Inventory is also slightly up which is controlling the demand and keeping prices steady. There are plenty of fixer uppers on the North Fork and there are still deals to be found for people who are willing to put in a little (or a lot!) of work. I’ve worked with a few buyers who have amazing before-and-after stories to share. More people need to look for homes that need work and keep an open mind if they want to add value.
The margins are getting smaller for builders to buy and flip, so second home buyers should work with a savvy buyer’s agent to help identify the best places to add value to a fixer upper.
SMK: Is the end of remote work in the New York area affecting the folks who moved out there? How?
MP: People have slowly moved back but I think that has been happening over the past two years. I moved out east full-time from Huntington after giving up a more corporate sales position in NYC, so I’ve seen the wave of those who have come and gone but continue to weekend here and many who have stayed and put their children in schools out here. I’m really in the middle of it all. If you cannot be remote, at least part of the time, you just cannot live here. The transportation to NYC or the drive is just not logistically feasible for every day.
SMK: What are some other trends in second homeownership you are noticing?
MP: Many people who bought during Covid are trying to rent their homes seasonally– to have their cake and eat It too! If the homes are modest. without pools and updates, the chances of finding a tenant to pay top dollar (or any dollar) for the summer months are getting slimmer. I say, enjoy your home part-time and watch its value grow while the North Fork area is still up-and-coming (parts of the Hamptons are, too). Both the North and South Forks give people the chance to be part of a vibrant farming and beach community. It’s a wonderful place to buy a home you love and enjoy it for years to come.