Why Homeownership on Long Island Is Still a Smart Move

Headlines might be telling you home prices are dipping—but the long view tells a different story.

If you’re planning to buy a home and recent media coverage has you second-guessing that decision, you're not alone. It’s true that a handful of metro areas are seeing slight price drops. But here’s what most headlines won’t tell you: home values almost always go up over time.

So before you get spooked by short-term market noise, let’s talk about one of the most important (and under-discussed) real estate principles: The Five-Year Rule—and why it matters more than ever here on Long Island.

What Is the Five-Year Rule?

The five-year rule in real estate is simple:

If you plan to stay in your home for at least five years, short-term price fluctuations likely won’t impact you much.

That’s because, over time, home values tend to increase. Even if the market cools for a year or two, historical trends show that prices almost always bounce back—and then some.

Lance Lambert, Co-Founder of ResiClub, explains:

"There’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time."

Industry leaders like Tom Ferry and Sharran Srivatsaa emphasize this too: when you own a home for the long haul, you position yourself to build wealth through appreciation, tax benefits, and growing equity—even if there are some bumps along the way.

5-Year Gains Across New York: The Numbers Don’t Lie

Let’s look at the data.

According to the Federal Housing Finance Agency (FHFA), home values in New York State have increased by 60.3% over the past five years. That’s a powerful reminder of what can happen when you hold onto a home—even through market fluctuations.

Here’s how that breaks down closer to home:

• Nassau County: Median home prices are up approximately 42-45% since 2019
• Suffolk County: Homes have appreciated by about 40-43% depending on area
• Queens County: Growth ranges from 30-35%, with some neighborhoods surpassing that
• Kings County (Brooklyn): Appreciation is around 35-40%

Even if parts of New York City saw a slight decline (around -2.9% since April 2024), homeowners who’ve owned for five years or more are still far ahead. And on Long Island specifically, prices remain strong thanks to high demand, desirable schools, and limited inventory.

But What About the Market Right Now?

Yes, the market is shifting. After years of rapid appreciation, price growth is slowing—and in a few places, dipping slightly. But those minor corrections (2-3% in some metros) pale in comparison to the 40–60% gains many homeowners have made over the last five years.

The reality? We’re returning to a more normal, sustainable market.

This isn’t 2008. Lending practices are tighter, inventory is low, and most homeowners have solid equity. Those fundamentals support long-term stability and growth.

Why This Matters for Long Island Buyers

Long Island remains one of the most competitive and desirable housing markets in the region. With tight inventory, excellent schools, access to beaches and parks, and strong commuter access, it’s not likely to see dramatic long-term declines.

Buying a home here—even during a market slowdown—puts you on track to:

• Build equity steadily over time
• Hedge against rising rents
• Benefit from tax advantages
• Create long-term financial stability for your family

And while timing the market perfectly is almost impossible, time in the market is what matters most.

Let’s Talk About Your Next 5 Years

When you picture your life five years from now, what do you see? If homeownership is part of that vision, now is the time to explore how real estate can help you build wealth and security.

📅 Schedule a consultation today and we’ll walk through:

• What your buying power looks like today
• Where the best opportunities are on Long Island
• How to build a long-term plan that supports your goals

Bottom Line

Prices may dip in the short term—but history shows that home values rise over time, especially if you stay in your home for five years or more.

If you're thinking about making a move, don't let the headlines hold you back. Let's build your strategy together—because five years from now, you’ll be glad you started today.