The ultra-rich are buying multiple quarantine mansions in the Hamptons for the “long-term,” as Gov. Andrew Cuomo is begging them to come back to New York City.
The Hamptons real estate market is seeing a recent trend known as “compounding,” in which people snap up two — or even three — seven- and eight-figure homes on the same street, Vanity Fair reported.
The trend began last year but has burgeoned since the start of the pandemic, a Hamptons real estate agent who asked not to be named told the magazine.
“With so many adult kids leaving the city and moving into their parents’ homes, people feel they need more room,” the agent said.
“They can see this could be a long-term gig, having the kids live here with them. I have one client with a $10 million main house buying another one with a whopping price tag next door for the kids… I have another client who’s trading up — from a $5 million home to a $10 million one.”
Real estate giant Corcoran’s second-quarter report, released last month, confirms a recent boom in Hamptons sales.
Closed sales for the quarter saw a 21 percent increase on the South Fork, the report shows, according to Vanity Fair.
And the Village of East Hampton’s sales volume soared by 292 percent, bolstered by multiple $15 million-plus deals.
“There’s no inventory,” the agent told the magazine. “We’ve never had a market like this before. In every price range: $750,000 to $10 million deals are ending in a bidding war and tears.”
Meanwhile, earlier this week, Cuomo said he’s been pleading with the wealthy to return from their second-home retreats so they can pay taxes to help offset the state’s growing coronavirus-related revenue shortfall.
“I literally talk to people all day long who are now in their Hamptons house who also lived here, or in their Hudson Valley house, or in their Connecticut weekend house, and I say, ‘You got to come back! We’ll go to dinner! I’ll buy you a drink! Come over, I’ll cook!’” he said.
Mayor Bill de Blasio took a shot at the governor’s statements, arguing that “wealthy people have a set of concerns about the city that we should accommodate them — that we should build our policy and approaches around them.”
“That’s not how it works around here anymore,” the mayor continued. “This city is for New Yorkers, this city is for people who live here, work here, fight to make this place better, fight through this crisis.”
“There’s a lot of New Yorkers who are wealthy, who are true believers in New York City, and will stand and fight with us — and there’s some who may be fair-weather friends,” he added. “But we must build our policies around working people.”