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Amagansett's Housing Market: Soaring Home Values and Complete Homeownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Amagansett, a charming Census-Designated Place (CDP) in New York, is a picturesque coastal community known for its beautiful beaches and quaint village atmosphere. Located in the Hamptons, this sought-after destination has experienced significant shifts in homeownership rates and property values over the past decade. The town has seen a remarkable increase in homeownership, rising from 83% in 2013 to 100% in 2022, while average home prices have more than doubled during this period.
The relationship between homeownership rates and average home prices in Amagansett reveals an interesting trend. As homeownership increased from 83% in 2013 to 91% in 2020, average home prices rose from $1,224,425 to $2,040,920, representing a 67% increase. This upward trend continued, with homeownership reaching 100% in 2022 and average home prices soaring to $2,910,860, a 138% increase from 2013. This suggests a strong correlation between rising homeownership rates and increasing property values in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Amagansett. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.18%, coincided with the steady increase in homeownership rates. This favorable financing environment likely contributed to the growing number of homeowners in the community, as lower interest rates typically make mortgages more affordable and accessible.
The renter population in Amagansett has seen a dramatic decline over the years. In 2013, 16% of the population were renters, with an average rent of $2,250. By 2021, the renter percentage had dropped to just 2%, with the average rent decreasing to $1,896. This trend aligns with the rising homeownership rates and suggests a shift in the local housing market dynamics. The declining renter population may have contributed to the slight decrease in average rent prices, as demand for rental properties diminished.
Looking at the most recent data, the average home price in Amagansett reached $2,944,650 in 2023, showing continued growth in the real estate market. However, in 2024, there was a slight decrease to $2,910,804. This minor correction coincides with a significant increase in federal interest rates, which rose to 5.33% in 2024, potentially impacting buyer demand and affordability.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Amagansett will continue to appreciate, albeit at a more moderate pace. The recent uptick in interest rates may slow down the rapid price growth seen in previous years. Average rent prices are expected to remain relatively stable or potentially increase slightly as the rental market adjusts to the limited supply of rental properties in the area.
In summary, Amagansett has transformed into a community of homeowners, with property ownership reaching 100% in 2022. This shift has been accompanied by substantial increases in average home prices, more than doubling over the past decade. The interplay between low interest rates, rising homeownership, and escalating property values has reshaped the local real estate landscape. As the market adapts to recent interest rate hikes and near-total homeownership, we expect a more balanced growth trajectory for both home prices and rental rates in the coming years.
