Real estate boom spurs town’s preservation income

With the onset of the COVID-19 coronavirus pandemic, the East End real estate market has remained hot.

The market has been fueled by the exodus of New York City residents and others to the East End, according to Assemblyman Fred Thiele Jr. (I-Sag Harbor).

The eight-month total for 2020 is the highest year-to-date revenue total for any eight months in the 21-year history of the Community Preservation Fund (CPF), a leading indicator of the East End real estate industry, the legislator added.

Money for the CPF comes from a 2% tax that buyers pay when purchasing East End properties and is used in turn to purchase open space for preservation and fund water protection programs.

Numbers Mr. Thiele just released for the first eight months of 2020 show that CPF generated $98 million during the past 12 months.

On Shelter Island, the funds total $1.14 million for the first eight months of this year, an 11.8% increase, or more than the $1.02 million that came in during the first eight months of 2019.

Only Southold had a drop this year compared to the same period last year. Its CPF revenues are at $5 million for the first eight months of 2020, compared with $5.2 million for the same period last year. That reflects a decline of 1.3%.

Riverhead saw a 28.6% surge, bringing in $2.79 million this year compared with $1.17 million for the same period in 2019.

Southampton had the highest increase, 44.8%, netting $42.47 million this year compared with $29.3 for the same months last year.

East Hampton followed with a 36.9% increase. It brought in $20.87 million this year as compared with $15.24 million last year.

In aggregate numbers for all five East End towns, Mr. Thiele noted that revenues for the first eight months of this year are $72.26 million compared with $52.82 million for the same months in 2019. That represents a 36.8% jump.

Revenues just for August of 2020 were at $11.16 million, compared with $6.02 million for August of 2019.

Since the fund began to accrue money in 2000, the five towns have netted $1.533 billion, he said.