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The Hamptons housing market just made a new splash, but the surge is not being driven by everyday homebuyers.
Instead, cash-rich Wall Street and tech executives are powering a boom in multimillion-dollar sales, pushing median prices to an all-time high even as overall sales activity softens, according to new data.
According to a new report from Douglas Elliman and Miller Samuel, Hamptons homes hit the highest median sales price on record at $2.34 million, up 25% year over year. The average sales price also rose 25% annually to $3.76 million.
« The catalyst is absolutely tied to capital markets, » Douglas Elliman’s Adam Hofer told Fox News Digital. « The Hamptons has always been a discretionary, wealth-driven marketplace. When Wall Street performs, 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. »
MIAMI MOVES AHEAD OF NEW YORK IN $1M-PLUS HOMES AFTER NEARLY A DECADE
« That said, this isn’t just a speculative spike, » he said. « Inventory remains structurally constrained, especially south of the highway and in turnkey properties. Unlike the pre-2008 era, today’s buyers are largely cash-heavy and less leveraged, which makes this appreciation feel more sustainable. »
The sun shines on two beachfront homes located in the Hamptons, New York. (Getty Images)
« So yes, Wall Street momentum fuels the top end, but limited supply and long-term lifestyle demand are what’s keeping values elevated. »
Luxury sales are doing the heavy lifting in the Hamptons, with sales over $5 million reaching a record high in the fourth quarter of 2025. Douglas Elliman internal data also shows property closings over $10 million were up 75% year over year, and there were four closings of $20 million or more in 2025, compared to just one the previous year.
« The luxury buyer is operating in an entirely different universe from the average homeowner. All cash transactions at $5 million and above signal confidence, liquidity and a long-term mindset. These buyers are less sensitive to interest rates and more focused on lifestyle, legacy and asset diversification, » Hofer said.
View of homes on Meadow Lane, Southampton, New York, on July 12, 2023. | Getty Images
« In contrast, the middle market is highly rate-sensitive. A one-point swing in mortgage rates dramatically impacts affordability. But when you’re writing an $8 million or $15 million check 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 in the middle tier, while the top 10% of buyers continue to transact with relative ease. The Hamptons is simply a magnified version of what’s happening across the country. »
But inventory is tight. Despite a slight increase in listings across the area in the fourth quarter of last year, months of supply fell to 6.8, down 24% from 2024, while luxury months of supply also declined sharply to 16.4 months.
Buyers are reportedly competing hardest for ocean and waterfront properties, turnkey, renovated homes in prime neighborhoods such as Southampton, Sag Harbor and East Hampton.
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« Construction timelines, labor costs and permitting uncertainties have made move-in-ready product a premium commodity, » Hofer noted. « Waterfront and properties with protected water views continue to command outsized demand, and that’s where buyers are willing to stretch the furthest. There’s a finite amount of waterfront in the Hamptons, and sophisticated buyers understand that scarcity. »
While not fully captured in the report, the early summer rental surge lines up with the data, as buyers are committing earlier, luxury confidence remains high, and seven-figure demand is not slowing.
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« Strong rental demand is often a leading indicator of buyer confidence. When high-end rentals lock in early and at premium rates, it signals that people want to be here and that the Hamptons lifestyle remains a priority, » Hofer pointed out.
« For buyers waiting for a significant price correction, » he said, « the rental market suggests that underlying demand hasn’t weakened. In fact, many renters ultimately convert to buyers after experiencing the market firsthand. Sitting on the sidelines in hopes of a dramatic pullback may mean competing later in an even tighter inventory environment. »
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