Take a short drive from Manhattan and you’ll find yourself in Long Island, a beautiful collection of cities and neighborhoods with much more to offer than just proximity to SoHo. Believe it or not, even the New York City boroughs of Brooklyn and Queens, which are part of Kings County and Queens County, respectively, are located on the island, in addition to Nassau and Suffolk counties.
Traditionally, Brooklyn and Queens are not included in conversations surrounding Long Island real estate, but we’ve decided to include them in this post for easier geographic comparisons.
To give you an idea:
Of the 8,798 existing homes that were sold in August of 2017, 22.2% sold above the list price. The median list price was $439,000 and the median sale price was $430,000; the median days on market for those homes was just 45.
New construction properties also did well, with 261 homes sold in August and 16.1% of those sold above list price; the median list price for new construction was $749,000 while the median sale price was $729,000. Most new construction properties spent around 121 days on the market.*
Let’s break it down and take a look at our Long Island real estate report.
Brooklyn Real Estate Investing
The biggest borough in New York City has a lot of attractive qualities for homebuyers, so it makes sense that Brooklyn is the most expensive district on Long Island. Home to Prospect Park and Brooklyn Heights, Brooklyn offers scenic views in addition to the convenience and activity of the world’s greatest city. The Williamsburg neighborhood also has a bustling nightlife with bars, restaurants, and live music to rival those of downtown Manhattan.
RealtyTrac Data:
- Median listing price: $799,000
- Median sales price: $739,000
- Foreclosure discount: $209,000 (28.4%)
- Homes for sale: 1,111
- Average Zillow Home Value Index (ZHVI): $757,900.
- One year forecast of the ZHVI: ⬆4.2%
- Negative equity rate: 5.1%
- Mortgage delinquency rate: 2.7%
- Average time on Zillow: 162 days
Brooklyn Fix & Flip Strategy:
In Brooklyn, investors are mostly purchasing homes and converting them to multi-family or mixed use properties. Since Brooklyn is the new Manhattan, deals here are high stakes with high prices; the potential rental income is what drives property values. While some investors will sell the completed property in its entirety, many investors will either refinance and hold the property for rentals or sell condominiums individually to capitalize on the hot market. Most buyers and renters here are young individuals or families in their 20s and 30s who plan on taking full advantage of everything New York City has to offer.
Queens Real Estate Investing
Queens is a hot spot for sports lovers, hosting both the Mets and the US Open. For the cultured crowd, Queens also offers Socrates Sculpture Park, the contemporary MoMA PS1, and the beautiful Queens Botanical Garden. Although not as busy as Brooklyn, this NYC borough still offers a number of delectable restaurants and a healthy nightlife.
RealtyTrac Data:
- Median listing price: $565,000
- Foreclosure discount: $55,082 (11.1%)
- Homes for Sale: 1,666
- Average ZHVI: $547,900
- One year forecast of the ZHVI: ⬆4.8%
- Negative equity rate: 7.0%
- Delinquency rate: 3.5%
- Average time on Zillow: 154 days
Queens Fix & Flip Strategy:
The investment strategy in Queens is similar to Brooklyn; although the borough is not as hot as Brooklyn, it is a very popular location and a well-established part of New York City. Here, there is also demand for stately single family homes with big yards and beautiful architecture. Although the most profitable strategy is still converting properties to multi-family or mixed use rentals or condominiums, investors who prefer flipping traditional single-family homes can take advantage of this market as well.
Nassau County Real Estate Investing
With stately attractions like Museum Row and the Old Westbury Gardens, Nassau County attracts more families and conventional homeowners than Brooklyn or Queens. Many visitors will spend their time hiking the local parks or touring the mansions in Sands Point. Nassau also claims the largest public beach in the world: Jones Beach State Park.
RealtyTrac Data:
- Median listing price: $499,000
- Median sales price: $455,000
- Foreclosure discount: $121,000
- Homes for sale: 3,249
- Average ZHVI: $507,500
- One year forecast of the ZHVI: ⬆1.7%
- Negative equity rate: 5.3%
- Mortgage delinquency rate: 3.3%
- Average time on Zillow: 128 days
Nassau County Fix & Flip Strategy:
The first county of Long Island outside of New York City, Nassau is not for individuals looking for a short commute to Manhattan. Nassau County is known for its school system, so families are always looking for a modern, single family home in a good area. The most common fix and flip strategy here is to purchase an older home and completely renovate it; many Long Island real estate investors will go so far as adding entire floors to the original house to make the property competitive in the Nassau market.
Suffolk County Real Estate Investing*
Located on the eastern half of Long Island, Suffolk County is the quietest Long Island location. Some of the attractions here include the family-friendly Long Island Aquarium, the Robert Moses State Park, and the Montauk lighthouse. Suffolk also boasts a number of vineyards, golf courses, and waterfront views that provide scenic entertainment for residents and visitors.
Zillow Data:
- Average ZHVI: $385,900
- One year forecast of the ZHVI: ⬆2.2%
- Median listing price: $499,000
- Negative equity rate: 10.2%
- Mortgage delinquency rate: 4.2%
- Average time on Zillow: 135 days
Suffolk County Fix & Flip Strategy:
Suffolk is attractive to Long Island real estate investors because the extremely low property prices reduce the risk for fix and flip investments. Since Suffolk is the farthest from the city, it is not as popular for rental or multi-family investments. Here, investors can profit substantially from cosmetic flips by purchasing distressed investment properties in Long Island and adding minor upgrades like paint jobs, new appliances, and clean finishes. The end buyers in this county are less wealthy than those in Nassau, making Suffolk County ideal for simple flips that transform run-down homes into clean, safe, comfortable homes that families can make a life in.
Hottest Long Island Neighborhoods For Real Estate Investors
The following 10 Long Island cities claim the neighborhoods with the highest Gross Flipping ROIs in 2016, according to the 2017 Attom Data Solutions Neighborhood Housing Index.
10. Hempstead – 86.9% ROI
This Long Island town is actually a collection of villages; this particular neighborhood is home to the Hempstead Country Club and lots of greenery, including Brierley Park, Kennedy Memorial Park, and Lincoln Park.
- Zip Code: 11550
- Q1 2017 Median Sales Price: $270,000
- Neighborhood Housing Index Grade: F
- Annual Home Price Appreciation: 9.1%
9. Springfield Gardens – 87.2% ROI
Springfield is popular for low-rise homes and the influx of families made flips here highly profitable in the eastern half of the town. This town is located just next to JFK airport and Idlewild Park and is full of Cape-style homes.
- Zip Code: 11413
- Q1 2017 Median Sales Price: $430,000
- Neighborhood Housing Index Grade: B
- Annual Home Price Appreciation: 20.2%
8. Elmont – 88.2% ROI
The two cemeteries located in the middle of Elmont didn’t stop this town from being one of the most profitable locations to flip a home this past year. The vast majority of Elmont is purely residential, but there are also some shops and convenience stores located throughout the area.
- Zip Code: 11003
- Q1 2017 Median Sales Price: $385,000
- Neighborhood Housing Index Grade: C
- Annual Home Price Appreciation: 10.3%
7. Freeport – 93.1% ROI
Formerly an oystering community, Freeport is now a suburb with gorgeous waterfront views. The fresh fish markets, seafood scene, and Sea Breeze waterfront park make this an ideal location for ocean lovers who want to settle off the beaten path.
- Zip Code: 11520
- Q1 2017 Median Sales Price: $305,700
- Neighborhood Housing Index Grade: C
- Annual Home Price Appreciation: 6.9%
6. Flushing – 93.5% ROI
In Flushing, you’ll will find the home of the New York Mets – Citi Field – as well as the USTA Billie Jean National Tennis Center, which hosts the annual US Open. With a larger Chinese population than Chinatown, Flushing is also home to some of the best Chinese food in New York.
- Zip Code: 11367
- Q1 2017 Median Sales Price: $660,000
- Neighborhood Housing Index Grade: A
- Annual Home Price Appreciation: 5.6%
5. Uniondale – 94.9% ROI
Located in central Nassau, Uniondale is known more for its small Cape Cod homes than its rental properties. Although Uniondale itself does not have many attractions, it’s just a 10 minute drive from Jones Beach State Park, and it’s even closer to Nassau County park, which has golf courses, a theater, and a popular swimming pool.
- Zip Code: 11553
- Q1 2017 Median Sales Price: $350,000
- Neighborhood Housing Index Grade: B
- Annual Home Price Appreciation: 16.7%
4. Rockville Centre – 100.0% ROI
With great schools and several parks, Rockville Center is popular for families with children. Its proximity to Hempstead Lake and Mill River also provides an opportunity for waterfront flips. Off sunrise highway, residents have access to several restaurants, bars, and shops that make this a comfortable and convenient place to settle down.
- Zip Code: 11570
- Q1 2017 Median Sales Price: $635,000
- Neighborhood Housing Index Grade: A
- Annual Home Price Appreciation: 2.4%
3. Rosedale – 106.3% ROI
Visitors to New York may drive right through Rosedale without a glance, but fix and flip investors should stop and take a second look. With only two square miles – some of which are occupied by marshes – this neighborhood may not be flashy, but the high return on investment for fix and flips makes it a worthwhile investment location.
- Zip Code: 11422
- Q1 2017 Median Sales Price: $449,500
- Neighborhood Housing Index Grade: B
- Annual Home Price Appreciation: 12.4%
2. Jamaica – 108.2%; 120.0%; 122.6% ROI
With its proximity to JFK airport and its strong international culture, it’s no wonder Jamaica has three of the top fix and flip neighborhoods in Long Island. Jamaica also draws in history buffs and wildlife fanatics with the King Manor Museum and Jamaica Bay.
- Zip Code: 11433; 11432; 11435
- Q1 2017 Median Sales Price: $320,000; $715,000; $400,000
- Neighborhood Housing Index Grade: B; A; B
- Annual Home Price Appreciation: 0.8%; 0.7: -13.6%
1. Ridgewood – 124.7%
Homier than Williamsburg but with the ease of transportation and density of shops citydwellers expect, Ridgewood earns the top spot on the list of hot fix and flip neighborhoods in Long Island. With booming construction and a flood of homebuyers, Ridgewood may soon be one of the most desirable neighborhoods in Queens – making it a perfect location for a fix and flip investment and for investing in Long Island real estate.
- Zip Code: 11385
- Q1 2017 Median Sales Price: $525,000
- Neighborhood Housing Index Grade: B
- Annual Home Price Appreciation: -7.6%
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*Statistics from Redfin Data Center
** RealtyTrac Data not available for Suffolk County.