N A N T U C K E T
SUMMER!
Summer is in full swing on Nantucket: excellent weather, many vaca oning guests and owners, a lively events calendar and the island looking its best. Our new website has launched, making it easier to view Nantucket proper es, search vaca on rentals, review market insights and contact our agents. A refreshed design; the same experienced local team. Please visit us!
At the end of the second quarter the Nantucket real estate market con nues to advance, shaped primarily by an unusually low inventory of homes for sale. Only 153 proper es were listed at the end of June as many owners choose to retain their island homes. Since 2020 the average residen al price on Nantucket has risen roughly 29%, and that strong apprecia on helps explain why owners are reluctant to sell: replacing a sold property is increasingly difficult.
Through June there were 128 closed sales, a 28% decline from last year, with an average sale price of $3,673,000 (down 4%). Those transac ons produced approximately $470 million in sales volume, roughly 10% below Q2 2025. In short: fewer transac ons but significant total dollars. Addi onal indicators: the average me on market is now about eight months, up from seven last year and five months in earlier recent years. That trend o en indicates lis ng prices are ambi ous. If historical pa erns hold, Nantucket's market is posi oned to reach higher annual benchmarks by year-end.
Proper es in move-in condi on with upgraded ameni es—pools, enhanced outdoor living areas, privacy, and high-quality kitchens, bathrooms, and interior finishes—remain the most sought-a er by buyers. Emphasizing these features increases marketability and appeal, as buyers priori ze convenience, lifestyle enhancements, and durable, a rac ve finishes.
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MARKETNEWS
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Proper es are selling for an average of 90% of list price, unchanged from last year. The least expensive available non-restricted, single-family home is a one-bedroom in Tom Nevers listed at $1,695,000. At the top end, the most expensive residen al offering is a Surfside compound on more than six acres with mul ple buildings, listed just under $40 million. There were 4 sales of Nantucket Housing Needs Covenant proper es, providing limited lower-cost opportuni es for those who can qualify. Overall, fewer than 10% of year-to-date sales have closed under $1 million. The largest share of transac ons fall in the $2–$3 million range, while sales above $5 million represent 21% of the market.
By area, the greatest number of sales occurred in Mid Island (26) followed by Town (23), reflec ng the higher housing density in those areas. Several neighborhoods had no closings to date: Beach Plum, Madequecham, Nashaquisset, Polpis, Quaise, Squam and Tuckernuck.
Every market has unique dynamics and the luxury segment behaves differently from broader markets. Nantucket's current profile: constrained inventory, cau ous buyer sen ment with some poten al purchasers on the sidelines, and a largely discre onary buyer pool. Together these factors are shaping a market of selec ve ac vity and sustained pricing strength. We will con nue to monitor condi ons and report on developments as the year progresses.
Highest and Best Use vs. Market Value
The term highest and best use is frequently encountered in real estate and appraisal contexts. It refers to the most probable use of a property that results in the highest value. This concept is governed by four key criteria: it must be legally permissible, physically possible, financially feasible, and maximally produc ve. Understanding these factors helps clarify how property value is determined beyond market percep ons. It is important to dis nguish between the highest and best use and the market value of a property. Market value is influenced by factors such as loca on, condi on, seller mo va on, and price. Of these, loca on is immutable—o en summarized as “loca on, loca on, loca on”—and cannot be changed. Conversely, the other three factors are adaptable. For example, a property in poor condi on can be renovated or repaired, provided there is sufficient me and financial resources. Seller mo va on varies widely, o en driven by personal circumstances such as death, divorce, financial needs, or lifestyle changes. These mo va ons influence how quickly a property might sell and at what price.
The price is the most flexible factor among the four. It can be adjusted rela vely easily to match market condi ons. Currently, on Nantucket, the average me to sell a property has increased to nine months, up from five months over the past five years. This shi is partly due to aspira onal pricing—where sellers set prices based on past or an cipated future markets rather than current reali es—and “seller math,” where owners aim to recover their investment plus a profit, or will only sell if they get enough to buy the next property, regardless of market demand. Interes ngly, buyers tend not to consider these subjec ve calcula ons, focusing instead on fair market value.
For property owners contempla ng lis ng, it is advisable to interview mul ple real estate brokers. Avoid choosing an agent solely based on op mis c pricing es mates. A realis c lis ng should include a well-founded meline for sale, grounded in factual market data. Failure to do so can result in a property remaining unsold for extended periods, becoming stale or s gma zed as overpriced. While such proper es may eventually sell when market condi ons align with the asking price, this process can take years, emphasizing the importance of accurate pricing and strategic planning in real estate transac ons.
ITIS NOTHOTHERE!
Summer started out this year with a hot blast across the country, but while the temp's reached high's in the low triple digits in Boston and New York, Nantucket stayed comfortably in the high 70's and low 80's. This is because the water temperature surrounding the Faraway Island is cooler in the summer and warmer in the winter. If you need an escape from the heat where you are, consider a last-minute rental on island. Homeowners who have remaining availability are o en flexible on the turnover day and open to nego a ng rates as well.
For those who have flexibility, late summer and early fall are fantas c mes to explore Nantucket. The weather is s ll beau ful (arguable be er than the heat of the summer), the stores and restaurants are s ll open and the crowds have thinned. While decades ago, the island rolled up its sidewalks a er Labor Day, now it is alive and thriving right through Christmas Stroll. Contact your favorite Atlan c East agent to book your rental today. Come experience the island in all seasons.
SNAPSHOTOF MARKETQ2
Most Sales byArea: Mid-Island,Town
AV Months on Market: 8 (up from 5)
AV SPas % of List Price: 90% (same)
AV SPas % ofAssessment: 121% (-13%)
Total # of Sales: 128 (-28%)
Total Sales $: $470 Million (-10%)
AV Selling Price Home: $4.5M (-7%)
Median SPHome: $3.5M (same))
AV SPLot: $1.5M (-21%)
Median SPLot: $1.4M (-1%)
Highest Residential SP: $16.8M*
Lowest Residential SP: $695K
Affordable Sales: 4
(restricted for affordability in perpetuity)
*Sold by Atlantic East Real Estate
NANTUCKET IS IN A DROUGHT
The Massachuse s Drought Task Force has declared Nantucket to be in a Level 2 Drought Condi on. The following restric ons are in place:
· Limit all non-essen al water use
· No automa c irriga on of any kind, including drip irriga on.
· Only watering by handheld hose or watering can a er 5 pm and before 9 am.
· Fix indoor leaks, check toilets, faucets and showers.
· Limit power washing of sidewalks and buildings.
· Limit pool fills.
The status will be reassessed at the end of each month. Residents and businesses are urged to conserve water and follow these restric ons to help protect the island's limited water supply. Please note that there are escala ng fines for those on Town water who violate the mandatory use restric ons. For more informa on contact Wannacomet Water Company at 508-228-0022.
Community Spotlight: Sustainable Nantucket Farmers &Artisans Market
Founded in 2006, the Farmers & Ar sans Market serves as Nantucket's lively community gathering place, showcasing the island's finest growers, makers, and food producers. Each Saturday during the season, more than 80 local vendors line Cambridge Street, offering produce, meats, dairy, preserves, and handmade cra s all grown, raised, or made on Nantucket. Shopping here supports local livelihoods, strengthens community es, and promotes environmental stewardship. Visitors and residents alike can enjoy fresh, authen c island flavors while helping sustain the island's culture and economy. A end to discover highquality, locally produced goods and to take part in a valued tradi on that enriches Nantucket life. For more informa on: .h ps://sustainable-nantucket.org/market
UPDATE ON SHORTTERM RENTALREGULATIONS
In November, at a Special Town Mee ng, Nantucket voters approved a Ci zen's Ar cle legalizing into the Zoning By-Law all rentals on the island, encompassing both short- and long-term tenancies. Short-term rentals are defined as stays of 32 days or less and play a central role in Nantucket's visitor economy, par cularly for individuals and families who cannot afford extended visits. The Ar cle required a two-thirds majority for adop on and was approved decisively, receiving 71% of votes cast in favor and 29% opposed. This outcome reflects broad community consensus a er nearly seven years of debate and underscores residents' desire to address perceived encroachments on property rights.
The prac ce of ren ng private residences has a long-standing history on Nantucket and remains integral to the island's character, especially given the deliberate absence of large resort developments. Nantucket's legisla ve authority is exercised through its Town Mee ng form of government, the established forum for adop ng local bylaws. Following cer fica on of the Special Town Mee ng results by the Massachuse s A orney General's office, an unnamed party filed a legal challenge. On April 16, 2026, the A orney General's office determined the challenge lacked merit, effec vely concluding the ma er for the me being. With this determina on, the community can redirect a en on to other priori es and ongoing challenges facing Nantucket.
Nantucket:
ATTENTION RENTALOWNERS
With summer rentals well under way, depar ng tenants are star ng to rebook for next year's season. If you have your rates and availability for 2027 ready, please send them to us at your convenience. Prepara on is key in the busy Nantucket real estate business!
Also, please remember that anyone ren ng their island home for more than 14 nights per year and less than 32 nights per lease must be registered with the State of Massachuse s and the Town of Nantucket. The cer ficate homeowners receive from the state does not need to be renewed unless there is a change in ownership. However, the local Nantucket permit must be renewed annually. If you are booking rentals for the 2027 season, you must have your 2027 permit in hand. Please go to to submit your applica on and permit fee for 2027 if you h ps://nantucket-ma.munirevs.com/log-in/ have not yet done so. Thank you.
A t l a n t i c E a s t
N
A N T U C K E T R E A L E S T A T E
Penny Dey, GRI, ABRM, Broker/Owner
Linda Bellevue, GRI, CBR; Heidi Drew, ABR, RSPS, SRS; Peter DuPont; Angel Conrad Frazier; Mary D. Malavase, GRI, ABR, RSPS, SFR; Erikka Perkins, Admin. Business Operations; Meg Ruley, ABR, RSPS; Lisa Sherburne, ABR, RSPS; Melinda Vallett; Geri Walker, RSPS, SFR; Mary O’Donnell and Yesenia Valer, Office Managers, Mamta Dey, Office Assistant
We believe in doing one thing and in doing it well!
82 Easton Street Nantucket MA 02554 508.228.7707 NantucketRealEstate.com
Volume XXII, Issue 3, Summer 2026
