🏡 Long Island Real Estate Market 2025: What’s Happening So Far
As 2025 moves into its final quarter, the Long Island real estate market continues to show strength and adaptability despite national uncertainty. Home prices are holding firm across most communities, even as the number of sales has slowed slightly from last year. With interest rates expected to trend lower heading into winter and major housing policies on the table statewide, the next few months will be pivotal for buyers, sellers, and investors alike.
📈 Year-to-Date Market Overview
According to the August 2025 Compass Market Report, Long Island’s housing market has remained remarkably steady compared to last year:
| Metric | August 2024 | August 2025 | % Change |
|---|---|---|---|
| Single-Family Sales (Overall) | 2,055 | 1,974 | -3.9 % |
| Avg. Single-Family Price | $959,286 | $995,264 | +3.8 % |
| Condo/Co-op Sales | 355 | 319 | -10.1 % |
| Avg. Condo/Co-op Price | $619,273 | $589,619 | -4.8 % |
| Average Days on Market | 46 | 40 | -13 % |
Nassau County continues to lead on pricing, with the average single-family home climbing 6.7 % to $1.13 million.
Suffolk County, by contrast, shows virtually flat year-over-year pricing (+0.1 %) but faster turnover and resilient buyer demand in mid-market areas such as Commack, Dix Hills, Northport, and Melville
August 2025 Long Island Market …
August 2025 Long Island Market …
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These numbers reflect a “tight-but-stable” market: inventory remains constrained, yet buyers remain active—especially when homes are priced correctly and well-presented.
💰 Interest Rates and Affordability
Mortgage rates have averaged 6.4 %–6.7 % through much of 2025, down from the 7 %+ spikes seen in 2023–24. The Federal Reserve’s spring 2025 rate cuts sparked a small rebound in refinancing and move-up purchases. Economists expect rates to approach 6 % or lower by early 2026, which could unleash pent-up demand from renters and first-time buyers waiting on the sidelines.
Affordability, however, remains a challenge. Long Island’s median home price is still over $700,000, and limited new construction continues to pressure supply.
🏗️ Development & Infrastructure Highlights
Several major projects are shaping the region’s long-term housing and economic landscape:
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Ronkonkoma Hub Phase 2 — Transit-oriented apartments, retail, and office space continue to redefine the Route 454 corridor, bringing jobs and walkable living to central Suffolk.
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Heartland Town Square (Brentwood) — After years of delays, renewed talks are advancing this 9-million-sq-ft mixed-use megaproject, which could transform mid-Suffolk housing supply.
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Nassau Hub Redevelopment (Uniondale) — The former Coliseum site is gaining traction again, with plans emphasizing housing, green space, and technology offices.
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LI Rail Improvements & Downtown Revivals — TOD (transit-oriented development) initiatives in Hicksville, Farmingdale, and Patchogue are creating denser, younger buyer markets around train lines.
These projects, along with the Route 110 Innovation Corridor in Melville and Farmingdale, are keeping Long Island competitive as families and professionals seek suburban space without losing proximity to Manhattan.
⚖️ Policy & Regulatory Updates Affecting NY Real Estate
2025 has also been a year of legislative headlines impacting the housing industry:
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NAR Settlement Changes: Buyer-agent compensation transparency has reached New York MLS platforms. Listing agents must now outline buyer-broker fees directly in listings, increasing clarity but reshaping negotiation strategies.
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Good Cause Eviction Law (2024 Implementation): Landlords statewide are adjusting to caps on rent increases and stricter eviction protections—particularly relevant for multifamily and investment owners.
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Energy & Building Codes: New York’s 2025 Building Energy Code expands the state’s “all-electric new construction” mandate to more municipalities. Developers in Long Island towns such as Huntington and Brookhaven are adapting to electric HVAC systems, heat pumps, and solar-ready standards.
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Property Tax Assessment Revisions: Nassau County continues its multi-year reassessment cycle, which has created fluctuating tax bills in 2025. Suffolk County is reviewing potential digital assessment reforms.
🧭 Local Trends to Watch
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Luxury Markets Surge East: Dix Hills (+42.7 % avg price), Northport (+21.9 %), and Lloyd Harbor (+25.7 %) show robust activity among high-net-worth buyers seeking larger lots and flexible home-office space
August 2025 Long Island Market …
August 2025 Long Island Market …
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Condos & Co-ops Softening: A 10 % drop in sales volume reflects affordability pressures and high maintenance costs, although transit-linked units in Nassau remain desirable.
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Faster Sales Cycle: Average Days on Market across Long Island fell 13 % to just 40 days—proof that quality listings still move quickly.
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Migration & Population Shifts: Remote-work flexibility continues to attract New York City residents eastward, keeping demand steady even as Manhattan rents ease.
🔮 Outlook for Late 2025 and Beyond
Most analysts predict moderate growth into 2026: slight price appreciation (2 – 4 %) paired with increasing transaction volume as rates decline. Long Island’s fundamentals—strong schools, low crime, and coastal appeal—remain its greatest assets.
Sellers who list competitively and stage effectively are seeing multiple offers, while buyers who stay flexible on location and condition can still find value.
🏠 The Bottom Line
2025 has been a year of balance for Long Island real estate—steady prices, selective buyers, and new opportunities on the horizon.
With key infrastructure investments, policy evolutions, and possible rate cuts ahead, the region is poised for renewed momentum through 2026.
💬 Thinking of Buying or Selling?
If you’re considering a move on Long Island, now is the time to plan strategically. Local experts like The Galluzzo Team at Compass can help you navigate pricing trends, community comparisons, and timing for maximum return.
