A Market Unlike Any Other
Nantucket's real estate market operates by its own rules. Thirty miles offshore, with 55.8% of the island protected as conservation land, supply is inherently limited. The result: one of the most expensive and consistently appreciating markets in the United States. Whether you're dreaming of a historic downtown cottage or a beachfront estate, understanding this unique market is your first step.
2024 Market Snapshot
Sources: Fisher Real Estate, Lee Real Estate, Bernadette Meyer
10-Year Price Appreciation
Nantucket real estate has appreciated 153.77% over the past decade—an average annual rate of 9.76%, placing the island in the top 10% nationally for real estate appreciation.
Median Home Price Growth
5-Year Change: Median up 51% ($2.5M → $3.78M) | Average up 46% ($3.32M → $4.86M)
What Things Cost (2024)
Median Prices by Property Type
Entry Points for First-Time Buyers
The Reality Check
Sub-$1 million homes have "disappeared entirely" from the Nantucket market. Even sub-$2 million properties are "becoming a distant memory." For most first-time buyers, condos represent the most accessible entry point, with a median price of $1.39 million and a range starting around $500,000.
Condominiums
Condo sales surged 53% in 2024. Median: $1.39M, range: $500K-$3.95M. The most realistic entry point for many buyers.
Surfside Crossing
New development targeting the $500K-$1.5M price range—designed specifically for Nantucket's underserved middle market.
Land Bank Exemption
First-time buyers pay no Land Bank fee on the first $1.2 million of their purchase price. Saves up to $24,000.
Cash Dominates
Most Nantucket buyers pay cash, insulating the market from mortgage rate changes. Financing is possible but competitive.
True Cost of Ownership
Buying on Nantucket comes with costs beyond the purchase price. Here's what to budget for a $2 million purchase:
Sample Closing Costs ($2M Purchase)
*First-time buyers: Land Bank fee exemption on first $1.2M reduces fee to $16,000 (saving $24,000)
Ongoing Costs to Consider
| Cost | Typical Amount | Notes |
|---|---|---|
| Flood Insurance | $1,526-$1,781/year | Highest in Massachusetts; mandatory in FEMA zones A/V |
| Property Tax | $3.28 per $1,000 (FY2025) | One of the lowest in MA; assessed values often below market |
| Homeowners Insurance | Varies widely | Coastal location affects rates; hurricane coverage important |
Flood Insurance Alert
Nantucket has the highest flood insurance costs in Massachusetts. Under FEMA's new Risk Rating 2.0, rates are expected to jump another 87% (~$1,300/year) over the coming years. Factor this into your budget.
Building vs. Buying
Thinking of building your dream home? Here's what you need to know.
$1,200/sq ft
Current construction cost on Nantucket. A 2,500 sq ft home = $3 million+ just to build, plus land.
HDC Approval Required
The entire island is a National Historic Landmark. ALL exterior changes need Historic District Commission approval.
Long Timelines
HDC review, permit process, labor shortages, and material transport delays. Budget 12-24+ months before move-in.
Turnkey Premium
Most buyers prefer move-in ready homes—they sell faster and command premium prices.
Neighborhoods at a Glance
Town (Downtown)
Historic center. Walkable to shops, restaurants, ferries. Highest demand, most inventory. Mix of historic homes and renovated properties.
Sconset (Siasconset)
Charming village 7 miles east. Rose-covered cottages, ocean bluffs. Quieter pace, strong community. Note: Bluff erosion concerns on some properties.
Madaket
Western tip of island. Famous sunset views, wide beaches. More remote/private feel. Limited commercial amenities.
Mid-Island
Central location near shopping. Generally more affordable. Good access to beaches in all directions. More modern construction.
Surfside
South shore beach community. Family-friendly, popular beach. Mix of cottages and newer homes. New Surfside Crossing development.
Polpis / Wauwinet
Northeast area. Large estates, privacy, natural beauty. Wauwinet hotel area. Harbor and ocean access. Very limited inventory.
Working with a Real Estate Agent
In a market this competitive and specialized, working with an experienced local agent is essential. They'll know about off-market listings, navigate HDC requirements, and help you move quickly when the right property appears.
Choosing an Agent
- Local expertise is critical—choose someone who knows the island's neighborhoods, regulations, and quirks
- Ask about their experience with the type of property you're seeking
- Get pre-approved before you start looking seriously
- Be prepared to act fast—well-priced properties move quickly
There are 32 real estate agencies on Nantucket, from local independents to national franchises like Sotheby's, Christie's, and Compass. Browse our Business Directory for a complete list with contact information.
Key Considerations
Coastal Resilience
Some areas face erosion and flood risks. Check FEMA flood zones and review our Sea Level Rise Guide before buying coastal property.
Conservation Limits
With 55.8% of land protected, new development is severely limited. This constrains supply but also protects your investment's value.
Seasonal Market
Activity peaks in Q3-Q4. Q4 2024 had "more than double" the transactions of Q1-Q2. Timing your search matters.
Rental Income Potential
Summer rentals can offset ownership costs. Peak weekly rates range from $10,000 to $50,000+. New 3% community impact fee applies.
Resources & Next Steps
Data Sources
All statistics in this guide are sourced from the following publications:
Market data reflects 2024 calendar year unless otherwise noted. Last updated: January 2025.