A nine-bedroom, 11,000-square-foot oceanfront home in Bridgehampton available for rent at $700,000 for two weeks this summer.
Courtesy: Gary DePersia | Corcoran
Median home prices in the Hamptons hit a record high in the fourth quarter, as Wall Street bonuses and tech wealth fueled a new wave of buyers in New York’s beach communities, according to brokers.
The median sales price in the Hamptons hit a record $2.34 million in the fourth quarter, up 34 percent from last year, according to a report from Douglas Elliman and Miller Samuel. The average sale price jumped to $3.76 million. The number of homes sold for more than $5 million also hit a record, at 82, according to the report.
“In recent years, we have seen a tremendous increase in wealth in the Hamptons,” said Jonathan Miller, CEO of Miller Samuel.
Wall Street bonuses are a big driver. Bonuses for 2025 are expected to be the highest on record, with the strongest growth since 2021, according to the New York State Comptroller’s Office. Real estate brokers say many hedge funders, private equity executives and venture capitalists are also joining traditional Wall Street bankers in this buying spree.
“Wall Street has had a very good year, and that’s directly reflected in Hamptons prices,” Miller said.
As existing home prices rise, most of the gains in median prices come from a change in the mix of sales.
Housing sales in the lower and middle segments of the market remain under pressure from high interest rates. The high end, however, is booming with all-cash transactions by buyers with cash on hand after three years of double-digit gains in the stock market.
A greater share of total sales coming from the largest and most expensive homes continues to push the median higher.
“This is not about price appreciation, but a shift toward higher priced home sales,” Miller said.
This is unlikely to slow down any time soon. Inventories remain low, especially for high-end beachfront homes. Brokers say the summer rental and sales season is already off to a strong start – despite subzero temperatures and heavy snowfall “in the East.”
“I’ve already rented most of my high-end stuff for the summer,” said Gary DePersia of Corcoran in East Hampton. “People are searching and renting early this year.”
DePersia said he rented a waterfront home in the Hamptons from July to Labor Day for nearly $1 million. He said wealthy New Yorkers who continue to move to Florida after the pandemic are buying homes in the Hamptons to get away during Florida’s hot summers. He also meets with buyers and renters from California, he said.
While there are still plenty of properties left for summer, both for rental and sale, he said those waiting for the usual last-minute discounts in May may be disappointed.
“We have a ton of snow here, but I’m showing a $10 million house mid-week to an interested buyer,” he said. “People want to be here because in the summer their friends are here, their former and current colleagues, their family. They want a meeting place and a cool environment.”