Wall Street types are buying up Hamptons new-builds as fast as builders can pump them out, according to Newsday. More new home permits are being granted than any other time since 2007, and the average building cost (not including land) was over $1M for the first time last year. The Wall Street bonus pool grew 3 percent to $28.5B last year, and that means spend, spend, spend in the Hamptons.
Quoted in Newsday, Joe Farrell, who recently sold a two-acre property in northern Bridgehampton for $8M, said, "North of the highway is really booming. These are prices we've never seen before." And buyers prefer the features found in new houses: the wine cellars, gyms, home theaters, soaring ceilings. They don't want to bother buying an older house and updating it. It's easier to knock it down and build new.
Worried that this is too much change in too short of a time? You're not alone. But all this building is good news for the Community Preservation Fund, whose coffers surpassed $1B in February.
· Home building boom returns to the Hamptons [Newsday]