Long Island Home Prices Soar to New Heights as Supply Drops
Median prices hit record levels in Nassau and Suffolk as baby boomers hold onto homes.
Long Island’s housing market just hit another milestone—and not necessarily the one buyers were hoping for. Both Nassau and Suffolk counties saw record-breaking median home prices in August, as tight inventory continues to push values higher.
Nassau and Suffolk Prices Reach Record Levels
According to new data from OneKey MLS, the median price of closed single-family home sales in Nassau County climbed to $875,000 in August, a $15,000 increase from July and a 5.4% jump year-over-year.
Suffolk County wasn’t far behind. The median home price rose to $714,000, up $12,000 from the previous month and 5% higher than August 2024’s $680,000 median.
Inventory Keeps Shrinking
The culprit? Lack of supply.
At the end of August, there were 5,928 homes listed for sale across Long Island—2,492 in Nassau and 3,436 in Suffolk. That’s nearly 300 fewer homes than in July and 6.5% fewer than last year.
Put another way, inventory has plunged 54.6% compared to the pre-pandemic market in August 2019, when more than 13,000 homes were listed.
Baby Boomers Holding the Keys
A major factor in the shortage: baby boomers are staying put.
A recent survey from Clever Offers found 61% of boomers nationwide say they never plan to sell their homes, up 7% from last year. Even more telling, only 10% expect to sell within the next five years, down from 15% in 2024.
This trend is especially pronounced on Long Island, where many boomers have lived in their homes for decades, often with low mortgage rates they don’t want to give up.
Market Activity Slows Despite Lower Mortgage Rates
While mortgage rates have dipped—averaging 6.37% for a 30-year fixed loan in New York as of this week, below the 2024 average of 6.7%—the lower rates could be a double-edged sword.
More affordable financing may draw additional buyers into the market, but with inventory still tight, that added competition could push prices even higher.
Ken Olson, associate broker with HomeSmart Premier Living Realty, explained:
“Inventory should pick up in the next 12 months if we see lower rates because the sellers will more likely now cash in their equity and maybe their 3.5 interest rate if they could get a 5 to 5.75. But at the same time, I think we’ll see more buyer participation as the rates go down. And even if the number of homes for sale goes up, if the buyer percentage goes up greater, we have the same problem. It’s going to cause prices to go higher.”
The Bottom Line
For Long Island buyers, patience and strategy are key in today’s market. For sellers, record prices present a rare opportunity—though timing and preparation matter more than ever.
FAQs About the Long Island Housing Market
Why are Long Island home prices rising so quickly?
Prices are being pushed up by historically low housing inventory, combined with steady buyer demand. Many baby boomers are choosing not to sell, keeping supply tight.
What’s the current median home price on Long Island?
As of August 2025, Nassau County’s median home price is $875,000, while Suffolk County’s median is $714,000.
Are mortgage rates helping buyers right now?
Rates have come down slightly, averaging 6.37% for a 30-year fixed loan in New York. While that helps affordability, lower rates could also increase competition.
Is now a good time to sell a Long Island home?
Yes—sellers are benefiting from record-high prices and limited competition. However, finding a new home after selling can be challenging due to low inventory.
Will inventory improve in 2025?
Possibly. If mortgage rates continue to fall, more homeowners may decide to sell. But if buyer demand rises even faster, prices could climb further despite more listings.