It may come as no surprise to Long Islanders searching for a home: the region’s real estate market surged in early 2025 — at one of the fastest paces in the nation.
Long Island saw a 12% year-over-year gain in single-family home prices — the fourth highest among the 150 most populous metro areas in the U.S., according to the National Association of Realtors (NAR).
The region ranked fourth — behind only Syracuse, NY; Montgomery, AL; and Youngstown, OH.
This jump comes as more than 80% of U.S. metro areas reported home price gains in the first quarter of the year. The national median price for existing single-family homes climbed to $402,300, up 3.4% from the same period in 2024.
NAR Chief Economist Lawrence Yun noted that the Northeast outperformed all other regions in both price growth and home sales. “Most metro markets continue to set new record highs for home prices,” Yun said.
Long Island an Outlier
But Long Island stands out in another way: it ranks as the 11th most expensive metro area in the country for single-family homes, with a median sale price that places it at the top of the Northeast.
The median sales price of existing single-family homes in Nassau and Suffolk counties was $779,300, according to NAR.
The only markets with higher median prices are all outside the region — eight are in California, while the other two are Urban Honolulu, Hawaii, and Naples, Florida.
So what makes Long Island’s price growth especially significant is that it’s occurring on top of an already high base. Many of the other fastest-growing markets — like Syracuse and Rochester, which saw year-over-year increases of 17.9% and 11.1%, respectively — remain relatively affordable, with median sale prices of just over $230,000.
Why Home Prices Are Rising on Long Island
Long Island, by contrast, is both rapidly appreciating and already among the priciest markets in the nation.
Here’s why Long Island real estate market continues to defy gravity: tight inventory and sustained demand have kept pressure on prices despite elevated mortgage rates that hovered around 7% during the quarter.
One draw that sustains demand is Long Island’s schools. The region is home to some of the country’s top-ranked public school districts, with five placing in the national top 20 according to Niche: East Williston (No. 4), Syosset (No. 5), Jericho (No. 10), Roslyn (No. 15), and Half Hollow Hills (No. 20).
But the high prices are a barrier to young families, many of whom are choosing to move to other parts of the country, leading some to doubt the sustainability of Long Island’s price surge.