“Maximum Distortion”: Low Supply Curbs Deals On L.I.’s East End

Inventory is strapped on Long Island’s East End, but between the North and South forks, the lack of supply is pushing buyers to different ends of the market. 

On the North Fork, deals skewed toward the upper tier in the third quarter, pushing median and average sale prices to some of the highest on record, according to data from Miller Samuel and Streetmatrix. But prices in the Hamptons declined during the period, as the majority of trades were again concentrated in the middle of the market. 

“We’re going through this period of maximum distortion because inventory remains chronically low, and that’s either restraining sales or shifting the demand to the middle of the market,” said report author Jonathan Miller. “Inventory continues to be the most telling housing metric.”

Listings fell nearly 23 percent in the Hamptons last quarter, down to roughly 970 compared to 1,260 in the same period in 2025. The drop in supply marked the third quarter of declines in a row, restraining sales across the luxury enclave. The number of transactions logged during the period fell 9 percent year-over-year. 

More than 65 percent of those deals fell in the $1 million to $5 million range, a continuation of a trend that began earlier this year. That shift pushed the median sale price down to less than $1.9 million, a roughly 6 percent decline from $2 million a year ago. 

Activity shifted to the middle of the market after a burst of luxury deals at the end of 2025 and beginning of 2026 decimated inventory in the market’s upper echelons. 

The strength of the financial markets and migration of tech wealth to the Northeast continue to fuel demand for homes in the Hamptons, Miller said, but there are few at the top of the market to buy. 

“That’s why the overall prices dropped, not because prices are declining, but because there’s less at the top and more in the middle,” Miller said. 

Inventory in the Hamptons is falling more quickly than deals, meaning the market is moving faster than it was last year. Though the pace has picked up, Miller said it’s not “this crazy frenzy or out of control,” with only 5 percent of deals resulting from a bidding war. 

“Inventory is declining faster — almost three times faster — which makes the market on the ground feel very tight and like it’s moving quickly,” Miller said. “But it’s not a boom.”

On the North Fork, supply rose marginally year-over-year, up from 142 to 144, though it remained more than 42 percent below the decade average for the region. The lack of inventory drove up competition for homes, with 15 percent of trades resulting in a bidding war. 

“The inventory situation is even tighter in the North Fork than in the Hamptons, even though Hamptons is really tight,” Miller said. 

Prices in the region also rose significantly, with the median sale price hitting a record high of $1.25 million, a 20 percent increase from the same period last year. 

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