Updated: Mar 8
Following a record year in 2021, outlooks for Hamptons real estate remain bright. With that being said, demand in certain areas is particularly high—leading to low inventory and forcing buyers to get creative and look to other areas and communities to purchase homes.
Our Brown Harris Stevens Hamptons agents have an expert perspective on the area's market, including where prospective buyers should look to find the best value and return of investment. Here is their advice:
East Hampton Outskirts
"The best buying area in East Hampton will be the outskirts of the village in general.
Parcels are large and offer the ability to be in the center of all the action within minutes. Many parcels were farmland, allowing buyers to clear the entire parcel.
Still, many parcels will offer a farm vista maintaining a sense of a picturesque rural town."
North Sea - Southampton
"The North Sea area of Southampton is a real hidden gem.
With many inlets, coves, and harbors ideal for boating; numerous nature preserves; miles of trails through wooded forests and along freshwater ponds; as well as sandy beaches on the bay, it is a very special area.
Properties here don’t come on the market very often and tend to sell quickly, so it is one neighborhood potential buyers should keep a close eye on."
"With inventory extremely tight on the North Fork, savvy buyers will expand their search areas, including to the west. Riverhead is the gateway to the North Fork and the Hamptons, and offers a vibrant downtown with restaurants and shopping, the Peconic Riverfront and Long Island Aquarium, plus quick access to the beaches of both Forks and a shorter commute from NYC.
Another strategy is to focus on the North Fork's core, between Route 25 (Main Road) and Route 48 (North Road).
While properties on or near Peconic Bay (to the south) or Long Island Sound (to the North) may get more attention, the farmland at the heart of the North Fork is incredibly beautiful. And you are never more than a few minutes' drive or bike ride to a beach."
"Sag Harbor is a year-round community with plenty of local entertainment (Bay Street Theater and the rebuilt and expanded Sag Harbor Cinema) and never-ending festivals (The Whaler's Festival, The Fire Department's Summer Carnival, the Harbor Frost Festival, The House Tour, the Halloween parade, and many more community celebrations).
So, the closer the property is to the heart of the Village, the higher the sale price. Remember, Sag Harbor is a walking town. And it is the outlier streets developed in the 1960s i.e. Meadowlark Lane, Redwood and Joel's Lane that offer the best value right now. First, American mid-century style houses may cost a bit less than historic houses. Secondly, a new buyer who wants to renovate will have more flexibility when they go before the Architectural Review Board because these newer properties do not fall within the historic district which is fiercely protected by the local Village Boards.
And, it goes without saying, the more finished and updated the property—a pool is a must—the more money it can demand."