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Cushman and Wakefield Global Brokerage President Bruce Mosler discusses the state of commercial real estate in New York City on “Mornings with Maria.”
The Hamptons real estate market just made another splash, but the surge isn’t being driven by everyday home buyers.
Instead, Cash-rich Wall Street and tech executives are driving a multibillion-dollar sales boom, pushing average prices to an all-time high even as overall sales activity softens, according to new data.
according to a new report by Douglas Elliman and Miller Samuel, Hamptons homes reached the highest median sale price on record at $2.34 million, up 25% from the previous year. The average sales price also rose 25% year-over-year to $3.76 million.
“The catalyst is absolutely tied to the capital markets,” Douglas Elliman’s Adam Hofer told Fox News Digital. “The Hamptons has always been a discretionary, wealth-driven market. When Wall Street acts, when liquidity events happen in tech, when bonuses are strong, that money needs a place to land, and for many high-net-worth buyers, that place is the Hamptons.”
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“That said, this is not just a speculative spike,” he said. “Inventory remains structurally tight, especially south of the freeway and in turnkey properties. Unlike the pre-2008 era, today’s buyers have a lot of cash and less leverage, which makes this appreciation feel more sustainable.”
The sun is shining on two beachfront homes located in the Hamptons, New York. (Getty Images)
“So yes, Wall Street momentum is fueling the top end, but tight supply and long-term lifestyle demand is what’s keeping values high.”
Luxury sales are doing the heavy lifting in the Hamptons, with sales over $5 million hitting a record high in the fourth quarter of 2025. Douglas Elliman’s internal data also shows that closings on properties over $10 million rose 75% year-over-year, and there were four closings of $20 million or more in 2025, compared to just one the year before.
“The luxury buyer is operating in a completely different universe than the average homeowner. All-cash transactions of $5 million or more indicate confidence, liquidity and a long-term mindset. These buyers are less sensitive to interest rates and more focused on lifestyle, legacy and asset diversification,” said Hofer.
View of houses on Meadow Lane, Southampton, New York on July 12, 2023. | Getty Images
“In contrast, the middle market is highly rate sensitive. A one-point change in mortgage rates dramatically affects affordability. But when you write an $8 million check or $15 million in cash, rate volatility becomes background noise,” he said. “It highlights a divided market that’s becoming more pronounced nationally. Rate sensitivity is creating friction at the mid-level, while the top 10% of buyers continue to transact with relative ease. The Hamptons is simply an expanded version of what’s happening across the country.”
But inventory is tight. Despite a slight rise in listings across the region in the fourth quarter of last year, months of supply fell to 6.8, down 24% from 2024, while months of luxury supply also fell sharply to 16.4 months.
Buyers are reportedly competing harder for oceanfront and waterfront properties, turnkey renovated homes in prime neighborhoods like Southampton, Sag Harbor and East Hampton.
FOX Business’ Madison Alworth reports live from Brooklyn, detailing New York City landlords’ concerns about Zohran Mamdani’s proposed rent freeze plan and the impact of continually rising property taxes.
“Construction timelines, labor costs and permitting uncertainties have made the move-in ready product a staple,” noted Hofer. “Waterfront and protected waterfront properties continue to generate disproportionate demand, and that’s where buyers are willing to stretch further. There is a finite amount of waterfront in the Hamptons, and sophisticated buyers understand that scarcity.”
Although not fully covered in the report, the rent increase at the beginning of summer aligns with the data as buyers commit earlier, luxury confidence remains high and seven-figure demand is not slowing.
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Advisory Group CEO Meredith Whitney discusses the forces driving investors and traders at the “Barron’s Roundtable.”
“Strong rental demand is often a leading indicator of buyer confidence. When high-end rentals are locked in early and at premium rates, it indicates that people want to be here and that the Hamptons lifestyle remains a priority,” noted Hofer.
“For buyers expecting a major price correction,” he said, “the rental market suggests underlying demand has not weakened. In fact, many renters eventually become buyers after experiencing the market firsthand. Sitting on the sidelines hoping for a dramatic pullback may mean competing later in an even tighter inventory environment.”
