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It’s news that will impress some, but probably depress most.
Long Island is now home to 28 communities where a typical starter home costs more than $1 million, according to a new Zillow report. These neighborhoods are part of a growing trend across the nation, where 237 cities now see seven-figure price tags for entry-level homes—a huge increase from 84 such cities five years ago.
With Long Island accounting for nearly 12% of these high-cost communities, the region stands out as a particularly challenging market for first-time homebuyers. The stark rise in prices reflects the broader housing crisis, where affordability continues to erode not only locally but across the country.
Many prospective buyers find it increasingly difficult to enter the market, as the housing shortage lingers and the gap between incomes and home prices widens.
If you wondering what you get for a starter home in one of the million-dollar starter home communities, consider that the East Hampton property pictured above features a two-bedroom, one bathroom, 1,000-square-foot house and is asking $1.25 million. No pool. No second floor. Not even a second bathroom.
You live on Long Island. Can you afford to vacation here? Probably not
Zillow, which defines a starter home as being among those in the lowest third of home values in a given region, notes that nationwide the typical starter home is worth about $197,000. That’s comfortably affordable for a median-income household.
But starter home values have grown 54.1% since 2019, which exceeds the 49.1% increase for the typical U.S. home value in the same timeframe.
New York has a total of 31 cities with million-dollar starter homes, up from 26 last year and 13 in 2019. The state is second on Zillow’s list to California, which has 117 million-dollar starter home cities. New Jersey is third with 21.
LI million-dollar starter home neighborhoods
Below is a list of the Long Island communities where a typical starter home sells for more than $1 million, along with typical starter home values for each respective community. The communities new to the list from last year are indicated with a star.
Sagaponack – $3,022,302
Water Mill – $2,253,479
Wainscott – $2,242,528
Sands Point – $2,222,625
Bridgehampton – $1,992,316
Amagansett – $1,957,470
Old Westbury – $1,852,154
Quogue – $1,776,131
Muttontown – $1,643,843
Oyster Bay Cove – $1,598,517
Laurel Hollow – $1,592,775
Lloyd Harbor – $1,549,180
Manhasset – $1,503,837
Upper Brookville – $1,323,818
Sag Harbor – $1,320,635
East Hills – $1,302,730
East Hampton – $1,269,768
Montauk – $1,264,917
Asharoken – $1,260,871
Cold Spring Harbor – $1,223,474
Remsenburg – $1,169,849
Mill Neck – $1,157,203
Southampton – $1,152,572
Orient – $1,152,022
Huntington Bay – $1,137,870
*Ocean Beach – $1,079,163
Shelter Island – $1,072,001
*East Williston – $1,047,565
Top photo: Two-bedroom house for sale 20 Boatheaders Lane N. in East Hampton. The asking price is $1.25 million. The typical starter home value in East Hampton is $1.27 million (Zillow.com).
