The North Fork…a bucolic, 30 mile stretch of waterfront running along the Long Island Sound and the Peconic Bay redolent with acres of vineyards, farmland, marinas and quaint fishing villages. Over the past few years, the quietly affluent region has been experiencing a decided uptick in visitors, with over sixty vineyards, breweries, beautiful beaches, superb boating and plenty of upscale farm/sea to table dining to draw tourists from near and far. And many who moved to the North Fork during the pandemic have chosen to stay, making the neighborhood a little, well, busy.
But so busy as to earn the moniker “Hamptons 2.0”?
Maybe in some places and in some cases. For certain, Friday and Saturday nights in Greenport during the summer months are a scene, the Village streets crowded with visitors, diners and partygoers pack the restaurants and bars. And the traffic…well, the traffic is challenging to say the least.
But “Hamptons 2.0”? Really? Have the Hamptons become so overpriced and inaccessible that the North Fork is the next best alternative? Living in the Hamptons has never come cheap; since the pandemic, prices have skyrocketed and supply is at an all-time low – which then just perpetuates the cycle of high prices, proving the premise underpinning the law of supply and demand. Two top North Fork real estate professionals chime in on whether or not the North Fork is just the new Hamptons…
Douglas Elliman’s Kristy Naddell does not agree that the North Fork is being reduced to another Hampton – or that North Fork buyers cannot participate in the Hamptons markets. “Many buyers I am working with can easily afford the Hamptons but choose to live on the North Fork because of the lifestyle,” comments Ms. Naddell. “North Fork buyers tend to want a more laid-back atmosphere and less of the ‘glitz and glam’ of the Hamptons. Several homes I’ve sold in the last few years were to buyers that sold in the Hamptons and moved to the North Fork by choice, not due to price. Even my family had a home in the Hamptons for 20 years which they sold in 2016 and moved to the North Fork because they felt the Hamptons became too congested. To me the North Fork has a lot of the charm the Hamptons had in the early 1990’s. The Hamptons is unrecognizable now compared to how it was then, and buyers looking on the North Fork want that peaceful, less conspicuous lifestyle.”
“The North Fork and Hamptons markets have always had some overlap but aren’t always moving in unison,” comments Bridget Elkin of Compass. “There is a contingent of North Fork buyers who have previously considered the Hamptons but found the right fit here. For some, price was a motivating factor; for most, it was the lifestyle. Both areas offer a lot of compelling qualities for residents, but while the Hamptons have always had a recognized ‘brand’, the North Fork previously enjoyed a bit of obscurity in the feeder markets that drive today’s east-end housing market.”
NFRES: Also prevalent along the highways and byways of the North Fork are a significant number of houses under renovation – as well as lots of new construction, especially in Cutchogue, Southold and Greenport. What are your thoughts?
Ms. Naddell’s response is candid. “I think that there are current homeowners who cannot move up in the NoFo marketplace so have decided to renovate/add additions instead. A lot of the homes I have sold recently are to buyers that are doing these renovations for themselves.”
Ms. Elkin looks at the question from a different perspective. “It’s true that given low inventory and higher interest rates, mobility within the same market is challenging,” she comments. “If you have a mortgage at 3%, trading into something at 6.5% hugely inflates the monthly mortgage, so most won’t consider that. That being said, renovation costs are quite high, so you’re unlikely to pursue it as the lower-cost alternative.”
“Another major catalyst,” continues Ms. Elkin, “was the change in use for second homeowners during the pandemic, much of which continues today. Second homeowners began spending significantly more time here, and their needs from their homes changed as a result.
NFRES: Are they flips?
“No, they are not flips,” responds Ms. Nadell. “It’s difficult to make money on flips in the current market. The price to buy a fixer upper is high and with building costs/labor costs being so expensive there isn’t enough margin to turn a decent profit. If anything, I see people buying these homes, renovating them for themselves and then trying to rent them when they aren’t living here. People that bought here in the last few years locked in great rates, so it would make sense that they would renovate, rather than sell.”
“While there is some spec / flip building and renovating going on,” explains Ms. Elkin, “most renovations are being pursued by homeowners for their own enjoyment. Many who have purchased in the last few years did so knowing they would be taking on a future renovation or restoration. For others who were residents pre-pandemic, the appreciation in property values in 2020-23 justifies added investments and upgrades to their homes.”
NFRES: What are the best additions/renovations a homeowner can make in terms of retaining value?
It’s all about lifestyle, according to Ms. Elkin. “Lifestyle sells, so anything that improves your outdoor living experience has significant value for potential buyers. Pools have become an increasingly valuable commodity and are a safe bet to add equity beyond your investment to install one. Today, many take a ‘minimalist’ approach and situate the pool in the middle of their yard, with little other than grass surrounding it. While this approach can be beautiful, working with a landscape designer to plan your pool as a ‘destination’ on your property is a nice alternative, and we predict we will see more of this in the future.”
Ms. Nadell confirms that a pool is the way to go. “A pool is a great addition if you are considering using the property for rental purposes and for resales. I would say the majority of buyers I work with either want a pool or room for one.”
NFRES: What’s the long view for the North Fork real estate market?
“New people are continuously entering the market as visitors and potential homeowners,” comments Ms. Elkin. “The region’s profile has grown exponentially over the past several years, and as entrepreneurs continue to innovate and start businesses, that audience grows. We have also witnessed an uptick in full-time residency, and with that comes increased viability for our business community and service providers.”
