Great Point Properties 2024 Annual Report

2024 NANTUCKET REAL ESTATE ANNUAL REPORT 1 ANNUAL REPORT 2024

CONTENTS A HISTORIC YEAR 2024 SALES WHAT DRIVES VALUE? TRANSACTIONS VS. DOLLAR VOLUME YEAR IN REVIEW MEDIAN SALE PRICE BY AREA COST OF CONSTRUCTION GPP QUICK READS HOME SALES BY AREA NAVIGATING VACATION RENTALS GIVING BACK THINGS TO KNOW CONSERVATION EFFORTS

O U R OF F I CE S

2

1 NO RTH BEA CH ST R EET N ANTUCKET, M A 02554 5 08.228.2266

ANNUAL REPORT 2024

6 MAIN S TR EET SIASCON S ET, MA 0 2 5 6 4 508.257. 6 3 3 5

G R EAT P O I N T P R O P ERTIE S.COM

OUR MISSION Nantucket. It’s not a destination on a map. It’s a state of mind.

Great Point Properties is one of the largest real estate firms on Nantucket. But what sets us apart is so much more than size. Guided by strong leadership, we operate as a seamless team with an incredible depth of knowledge, deep roots in the community, and a level of accountability and personal service second to none.

We have a proven track record of success that spans more than two decades. In fact, most of our principals’ business is referral only, which speaks to the level of attention we deliver. Yet we do not rest on our laurels. Whether it’s a sale or a rental, we have exceptional follow-through.

And our team will work tirelessly to ensure your satisfaction.

ABOUT US Great Point Properties was founded in 2002 by brokers Greg McKechnie and Bill Liddle. After six highly successful years in business, in 2008 they joined forces with Edward Sanford of Sanford Real Estate under the Great Point Properties name. Together, they set out to create an elevated experience in Nantucket real estate.

In 2013, GPP purchased Sconset Real Estate, the only firm focused solely on the island’s unique east end. The firm offers unparalleled knowledge of this distinct market, supplemented by the services of Great Point Properties staff.

Today, Great Point Properties is one of the most successful real estate firms on the island. Each member of our staff truly believes that we are only as good as our last transaction. So we work extremely hard to earn and keep our clients’ trust. We would say that our team members go above and beyond, but truth is, they are just doing their jobs the only way they know how.

In our 22nd year, Great Point Properties has grown to 29 agents and 7 administrators.

3 ANNUAL REPORT 2024

A HISTORIC YEAR FOR NANTUCKET REAL ESTATE

MARKED BY RECORD-BREAKING HIGHS

2024 was a remarkable year. We witnessed a memorable presidential campaign and welcomed the beautiful and humbling distraction of the Summer Olympics in Paris.

During this time, the US stock markets rose to new highs, which, even with the headwinds of higher interest rates, fueled Nantucket’s real estate market.

Locally, the island continues to face unresolved challenges. The acute affordable and attainable housing crisis is impacting the year-round community with no easy solutions; the offshore wind farm development’s early failures have prompted many questions and few answers; the endangered right whale migration pattern is fueling continued federal-level review, which could disrupt the island’s Ferry service; the ongoing shortterm rental regulation debate remains unresolved after several impassioned discussions during our Town Meetings; the Nantucket Island Land Bank purchased a sliver of beach facing Nantucket Sound almost adjacent to the Jetties Beach and representing their most costly land purchase; and the island’s annual Christmas Stroll was disrupted with power outages forcing downtown retailers and restaurants to shut down on one of their busiest days of the year. Indeed, we are a resilient island and remain grateful for what makes this place so special.

The island’s real estate market ended on very solid footing with just over $1.35 billion in dollar volume and 49 pending sales. Perhaps the leading real estate story is the median price for a single-family home approaching $3,385,000. With limited new construction and a tempered flow of new inventory, we expect more of the same in 2025. We end this year with gratitude to our island community and hope for peace around the world as we enter another new year.

- GPP Principals Bill Liddle & Greg Mckechnie

4 ANNUAL REPORT 2024

2024 MARKET SNAPSHOT

23%

28%

18%

2024 TOTAL TRANSACTION VOLUME - GPP SHARE

2024 TOTAL DOLLAR VOLUME - GPP SHARE

2024 NANTUCKET RENTAL MARKET - GPP SHARE

Compared to 2023, 2024 transaction volume was essentially flat, 319 vs.

306 prior.

House dollar volume had a very strong year, topping $1.2B for just the 3rd time in our history.

Based on the Short-Term Rental Tax collected by the Town of Nantucket, GPP represented 18% of the vacation rental revenue raised in 2024.

$1.35 Billion ANNUAL SALES VOLUME

$2,5B $2B $1,5B $1B $500M $-

2020

2021

2022

2023

2024

Total Transactions ANNUAL TRANSACTION VOLUME

800 600 400 200 0

2020

2021

2022

2023

2024

5 ANNUAL REPORT 2024

2024 ISLAND SALES:

$1.35 BILLION ON 319 TRANSACTIONS

HOME SALES: $ 1 . 2 B ON 2 7 8 TRA NS A CTI ONS

4.5M

$

100

$

26M

$

3.4M

AVERAGE SALE PRICE

AVERAGE DAYS ON MARKET

HIGHEST SALE PRICE

MEDIAN SALES PRICE

COMPARED TO 2023: $4M

COMPARED TO 2023: 102

COMPARED TO 2023: $42M

COMPARED TO 2023: $2.8M

NANTUCKE T HOME S A L E DATA

AVE RAGE INVENTORY

AVER AG E D AY S O N MAR K ET

250

200

Average Inventory

Average Days on Market

200

150

150

100

100

50

50 0

2020

2021

2022

2023

0

2024

AVE RAGE SALE TO ASKIN G PRIC E

2021

2022

2023

2024

AVER AG E L I S T P R I C E

Average List Price

Average Sale to Asking Price

98% 97% 96% 95% 94% 93% 92% 91% 90% 89%

2020

$ 6000000 $ 5000000 $ 4000000 $ 3000000 $ 2000000 $ 1000000

2024

2023

2022

2021

0

2020

2020

2021

2022

2023

2024

LAND SALES: $ 9 4 M ON 3 3 TRA NS A CTI ONS

2.9M

$

132

$

12M

$

2.2M

AVERAGE SALE PRICE

AVERAGE DAYS ON MARKET

HIGHEST SALE PRICE

MEDIAN SALES PRICE

COMPARED TO 2023: $2.5M ANNUAL REPORT 2024

COMPARED TO 2023: 65

COMPARED TO 2023: $10M

COMPARED TO 2023: $1.8M

6

A FEW OF GPP’S RECENT SALES

2024 GPP SALES: $332 MILLION ON 59 TRANSACTIONS

3 GOLDFINCH DRIVE, NAUSHOP

17 BURNELL STREET, SCONSET

37 VESTAL STREET, TOWN

Sold $2,825,000

Sold $5,450,000

Sold $4,525,000

49A MADAKET ROAD, WEST OF TOWN

42 SHIMMO POND ROAD, SHIMMO

6 KELLEY ROAD, POLPIS

Sold $4,137,500

Sold $24,000,000

Sold $2,200,000

122 WAUWINET ROAD, WAUWINET Sold $5,600,000

14 & 16 COFFIN STREET, SCONSET Sold $9,770,000

36C SESACHACHA ROAD, QUIDNET Sold $3,600,000

7 ANNUAL REPORT 2024

WHAT DRIVES VALUE IN THIS MARKET?

THE PRICE OF “DONE”

The value of a property is a combination of the land value plus the improvements upon the land. In recent years, we have seen a premium placed on those improvements.

Currently, the cost of construction on Nantucket is hovering at $1,200 per square foot. The land value is much more difficult to determine; on an island measuring 16 miles by 4 miles, the values can vary dramatically.

The delta when examining construction between “done” and “not done” might be greater than one would expect. This can be seen by examining two comparable properties in Nantucket’s Historic District: 72 Main Street is a 6 bedroom, 6 bathroom home built in 1822 and renovated in 2019. The house is 6,804 sq. ft. and is situated on an 11,325 sq. ft. lot. The property sold in September 2024 for

$24,800,000, a new high water mark for residential sales in the core historic district in Town. 7 Pleasant Street offers 7 bedrooms and 8 bathrooms. The house and guest house offer 6,787 sq. ft. and are sited on a 13,493 sq. ft. lot. The property was offered at an asking price of $13,750,000.

Comparing these two properties, we can see that they are very similar. Arguably, Main Street holds a slightly better address, but not by much. Pleasant Street offers a larger lot and two dwellings. The only significant difference is that Main Street was fully renovated, and Pleasant Street, while well-maintained, has areas that could be renovated to appeal to today’s buyers. But the largest differential was the price, with a $11,050,000 difference between the two. Factoring in a $1,000 per sq. ft. price tag to renovate 7 Pleasant Street, which is certainly not necessary, there was still a $4,263,000 $594 differential between the properties. For the buyer willing to invest the time, there is a significant upside. $1.093 We see properties being overlooked that require work to bring them up to the standards that many of our buyers are looking for today. Certainly, properties that are fully finished, well-appointed, and turnkey are aesthetically more appealing than something that might need work. However, buyers should look past the shiny finishes and look more towards value.

Time is the one commodity that most of our clients feel they are lacking, and many do not want to invest the time it takes, gravitating toward more finished homes. In an attempt to save on this precious commodity, a premium has been placed $558 on properties that are considered done, often shadowing the adverse impact of a less desirable location. $968- High $2,132 Fawn Lane, a newly created 10-lot subdivision centrally located Mid-Island off of Old South Road, is not an area that traditionally demanded high land values. However, we saw houses on Fawn Lane selling for $3,000,000+. These new construction houses are well-designed and nicely appointed, and buyers have chosen to value the home over the location: 5 Fawn Lane Sold August 2024 for $3,300,000, 11 Fawn Lane Sold April 2024 for $3,030,000, 15 Fawn Land Sold September 2024 for $3,400,000.

But now we are beginning to hear about builders’ schedules freeing up, and we may see the cost of materials easing, even if only slightly, from what the island has seen over the past few years. Only time will tell if, in the face of lower costs and expedited completion, the value of new construction in less-known locations will be maintained or if the location will rise again to the top as the driver.

So in 2025, do not be afraid to buy ugly, and while we all have our favorite spots on Nantucket, do not eschew the most important tenet of real estate: Location.

8 | ANNUAL REPORT 2024

Two Highest Island-Wide Sales

Two Highest Island-Wide Sales

5 GRANT AVENUE, CLIFF | $26,000,000

41 JEFFERSON AVENUE, CLIFF | $26,000,000

Highest Town Sale

Highest Cisco Sale

72 MAIN STREET | $24,800,000

1 FARMVIEW DRIVE | $8,960,000

HIGHEST SALE EVER RECORDED IN THE HISTORIC DISTRICT

Highest Sconset Sale

Highest Land Sale

23 MOREY LANE | $13,375,000

76 EEL POINT ROAD | $12,000,000

9

9 ANNUAL REPORT 2024

A HIGHER THRESHOLD 2024 brought a significant amount of transactions over $10,000,000, matching the all-time highs of 2021 and 2022.

Median home prices are at $3,385,000, and we are seeing the lower end of the market slow.

Home sales ranging from $1,000,000-$3,000,000 were down, with 106 transactions totaling $219,228,954 in dollar volume.

It is possible this is a function of diminished inventory and rising costs.

It will be interesting to see if the median home price continues to rise in 2025, or if we have hit a new threshold.

10 | ANNUAL REPORT 2024

HOME TRANSACTIONS VS. DOLLAR VOLUME TRANSACTIONS

122 78 49 8

UP TO $3M

$3M-$5M

$5M-$8M

$8M-$10M

13

$10M-$15M

8

$15M+

$69.5M

$158.3M $167.8M $230.6M $306.3M

$306.5M

DOLLAR VOLUME 11 ANNUAL REPORT 2024

YEAR IN REVIEW 2024 APPRAISED 2024 was another monumental year for Nantucket real estate. Interest rates remained high, with many owners locked in with pandemic-driven low rates; inventory remained low, and the Nantucket Land Bank set the record for the highest residential sale in the entire state of Massachusetts.

Compared to 2023, 2024 transaction volume was slightly higher, 320 vs. 306 prior. When we compare 2024 numbers to the previous five-year average, we see that transaction volume was sharply lower than our island has historically been accustomed to. In 2024, transaction volume was down 39% compared to our 5-year average. When we zoom out and take a higher-level view, the average transaction volume from 2003 - 2022 was 495, making 2024 transaction volume 35% lower than our 20-year average.

ALL TRANSACTIONS

TRANSACTIONS

2019

2020

2021

2022

2023

2024

24 V 23

19-23 AVG

24 v AVG

Houses

354

544

566

345

256

278

9%

413

-33%

Land

69

87

139

123

36

33

-8%

91

-64%

Commercial

20

17

45

14

15

8

-47%

22

-64%

TOTAL

443

648

750

482

307

319

4%

526

-39%

DOLLAR VOLUME (M)

2019

2020

2021

2022

2023

2024

24 V 23

19-23 AVG

24 v AVG

Houses

$840

$1,698

$1,877

$1,408

$1,030

$1,239

20%

$1,370

-10%

Land

$79

$124

$228

$197

$91

$94

4%

$144

-34%

Commercial

$83

$47

$227

$31

$80

$19

-76%

$94

-79%

$1,002

$1,869

$2,332

$1,636

$1,201

$1,353

13%

$1,608

-16%

TOTAL

Dollar volume, however, tells a different story. House dollar volume had a very strong year, topping $1.2B for the 4th time in our history. We closed the year with $1.24B in house dollar volume, representing a 20% increase over the prior year. Interestingly, house dollar volume represented 91.6% of total dollar volume this year, the first time it has hit above 90%. Historically, this number has hovered around 77%. This heavier weight in house dollar volume was due to virtually non-existent commercial activity and a scarcity of remaining raw land on Nantucket. The construction boom during the pandemic increased construction costs

Inventory vs. Average Sales Priceconservation groups have made raw land scarce. This has created an and lead times.

The efforts of various

250 vs. Average $5,000,000 environment where buying a finished home is much easier and often less expensive than building from the Inventory Sales Price

50

200

ground up.

00

150

$3,000,000 This data reflects how the island market has changed over the past few years. Nantucket’s popularity has $4,000,000

50

100

strained inventory, increased sales prices, and generated higher annual dollar volume on fewer $2,000,000 $3,000,000 average

00

50

transactions.

0 2019

INVENTORY VS. AVERAGE SALES PRICE $$1,000,000

50 0 2019

2020

2021

2020 2022

Inventory

2021

$4,000,000

$5,000,000

2022

Inventory 2023 2024

$1,000,000

$2,000,000

Inventory vs. Average Sales Price

2023 2024 2025 $250Price Average Sales 2025

Average Sales Price

$5,000,000

200

$4,000,000

150

$3,000,000

100

$2,000,000

50

$1,000,000

0 2019

2020

2021

2022

Inventory 12 ANNUAL REPORT 2024

2023

2024

2025

$-

Average Sales Price

MARKET OBSERVATIONS The $10M+ sales market significantly contributed to the success of 2024. We saw 21 transactions close for over $10M, which makes 2024 the 2nd largest year for $10M transactions ever. This segment was responsible for $326M in dollar volume and 26% of total house sales dollar volume for the year. For perspective, the $10M+ segment has, on average, contributed 16% of total house sale dollar volume in the past five years.

This increase is statistically significant and shows us both strong price appreciation and a new kind of buyer seemingly uninfluenced by interest rates and other potential macroeconomic headwinds. Equity markets hover near all-time highs, making it hard to envision a shift in momentum in the near term.

A few other segments are worth mentioning this year. The $1M - $3M market has slowed; this year, we saw 106 transactions totaling $219M in dollar volume, representing a 9.1% decrease in both transactions and dollar volume compared to prior. When we put these numbers against our 5-year average, the numbers are more staggering. 2024 was 44% lower on both metrics. Two factors are creating these changes. Significant price appreciation across our market has put a strain on available inventory; coupled with sustained elevated interest rates, we see continued downward pressure on this market segment.

We also saw a significant number of $4 - $5M transactions, 36 on the year, the 2nd most of all time. 2nd to only 2021, the largest year for nearly all categories fueled by the COVID-19 pandemic. In 2024, this segment saw $159.2M in dollar volume, a 72% increase from 2023. Similar to what we saw across the board, price appreciation has increased available inventory in this segment and driven this higher transaction and dollar volume.

HOME SALES BY PRICE POINT

400 350 300 250 200 150 100 50 0

Home Sales by Price Point

$1M - $3M

$3M - $5M 2020

$5M - $8M

2021

2022

$8M - $10M

2023

$10M+

2024

WHAT’S NEXT Moving forward, Great Point Properties expects a similar story with constrained inventory and sustained demand.

We anticipate that values will hold firm despite lower transaction volume. As we enter 2025 following a contentious election, equity markets are near all-time highs. The incoming administration must effectively navigate stickierthan-expected inflation and higher-than-desirable interest rates. Barring any significant macroeconomic events, 2025 should be another great year to be on Nantucket.

PRICE REDUCTIONS

AVERAGE VS. MEDIAN SALES PRICE

Price Improvements

Average vs. Median Sales Price

350

$5,000,000

300

$4,000,000

250

$3,000,000

200 150

$2,000,000

100

$1,000,000

50

$-

0

2020

2021

2022

2023

2024

*Market data and analysis provided by Ethan Ulmer

2020

2021

2022

Average

Median

2023

2024

13 ANNUAL REPORT 2024

2024 MEDIAN SALE PRICE BY AREA

TUCKERNUCK

$3.8M *ONE LAND SALE

DIONIS/EEL POINT

$8.8M CLIFF

$5.8M MADAKET

$2M CISCO/HUMMOCK POND

$4M

14 ANNUAL REPORT 2024

WAUWINET

$4.8M BRANT POINT

$5M

QUIDNET

$3.6M SHIMMO/SQUAM

$16M

TOWN

$3.3M MID-ISLAND

$1.7M

MIACOMET

$2.2M

POLPIS

$5M

MONOMOY

$10.2M

SCONSET NAUSHOP

NASHAQUISSET

$3.4M SURFSIDE

$3.4M

$4M

$2.2M MADEQUECHAM

$6M

TOM NEVERS

$3.3M

15 ANNUAL REPORT 2024

THE COST OF CONSTRUCTION

AND THE IMPACT ON HOME PRICING

Over the past five years, Nantucket’s real estate market has been on the rise with a persistent trend of limited inventory compared to historical norms, which previously reflected a more balanced supply of homes available for sale and high average sale prices. The same can be said about the construction market. The island’s building industry has been strained with a smaller labor pool due to the cost of living and was exasperated during the COVID-19 years of 2020 through 2022.

Ten years ago, the industry consensus was that building costs were about $500 per square foot. In 2021 and 2022, the street’s opinion shot up to about $1,000 per square foot. As we continue to return to pre-COVID commerce, when it only takes two months for a Sub Zero delivery, costs have drifted upwards towards $1,200 per foot for a well-built custom home.

A highly regarded local builder shared that he has not seen labor or finished material costs go down in his forty-year career. Much like paper towels, the distortion of cedar roof shingles scarcity during the pandemic has eased. However, cedar prices are at an alltime high, and building materials continue to inflate steeply. If a construction project is estimated to take eighteen months, builders project an inflation rate in their budgets. Many high-end homes built today are detailed with finish materials and amenities that today’s buyers seek. More complicated regulations, insurance, and the recently enacted Massachusetts Stretch Energy Code, with complex requirements, add to the cost pressure. The new energy code makes Massachusetts homes significantly more energy efficient while eliminating carbon emissions. Remember that beautiful and shiny blue Boderus boiler installed five years ago? That’s now as dated as sponge paint. Future homes will be run solely on electricity, requiring houses to have a significantly larger electric capacity of power coming into the house, which adds to construction costs. Also, homeowners will need to install energy-rated windows, doors, and insulation to satisfy energy efficiency goals.

The building community continues to benefit from new building-related businesses and highly skilled tradespeople entering the various related fields, albeit not at the rate to keep up with homeowner demand. However, this new pool of talent does not have the benefit of the Boomer and X generations. The cost of entering the home or rental market is unlike anything their predecessors experienced. The result is that wages have to keep up the island’s cost of living. Alternatively, wages must incentivize trades to travel from Hyannis daily.

The impact on building costs directly affects our real estate pricing. An average-sized home on Nantucket is around 3,500 square feet in size. These homes typically have four or five bedrooms. To build such a house is conservatively in the $3,500,000+ range.

That does not include the hard-to-find land or landscaping. While markets can change, construction costs tend to be sticky. It is reasonable to conclude that median and average home sale prices will continue to remain elevated, given the costs associated with building will continue to be a factor.

16 | ANNUAL REPORT 2024

GPP QUICK READS 2024 MARKET SUMMARY

DAYS ON MARKET

By Alexa Coleman

By Amber Cantella

The real estate market in 2024 remained steady. Demand

One thing is true: all houses will sell if that is the desired

continued to drive the market forward, outpacing dollar

outcome. What most often slows the process is asking

volume and transaction volume from 2023. However,

prices that do not align with market values. Today’s buyers

properties sat on the market slightly longer in 2024, forcing

have more information than ever, and sellers who want to

sellers to negotiate more. Properties traded on average at

test the market with aspirational pricing often miss out on the

96% of asking price this year compared to 97% last year.

typical enthusiasm among these well-informed consumers.

We continue to see buyers willing to pay a premium for new

Though home values have continued to rise, we also saw

construction as labor, material costs, and lengthy building

days on market (DOM) grow. In 2024, the average days

timelines have been a less appealing choice for buyers. We

on the market was 100, 2023 = 93 DOM, 2022 = 76, 2021

also continue to see a strong desire for locations in and

= 122, and 2020 (Covid paused the world) = 172. In 2024,

around Town with Cliff being home to five of the top ten

there were 189 price reductions compared to 130 price

most expensive transactions of 2024.

reductions in 2023. Buyers will take notice once a price reduction is sufficiently close to a home’s market value.

DIMINISHING SUPPLY OF LAND

2025 FORECAST

By Laura Belair

By Liz Finlay

Nantucket sometimes feels acutely finite, given the Atlantic

As we enter 2025, it is feeling like it will be more of the same.

surrounds its 47 square miles. To put the island’s size in

Interest rates continue to feel elevated to consumers who, in the

perspective, neighboring Martha’s Vineyard is 87 square miles,

not-so-distant past, grew accustomed to unprecedented three

and Cape Cod is 339 square miles. Conservation efforts make

percent interest rates. There were 133 properties for sale at

Nantucket’s land area even more precious. The Nantucket

the end of 2024 and while inventory typically increases by

Conservation Foundation is the largest landowner, with nearly

May or June, inventory will likely continue to be historically

1/3 of the island under conservation. The Nantucket Land Bank

limited. And new construction supply? We expect the selection

is the second-largest steward of open lands, and it continues to

will be lean given the high construction costs. At the close of

purchase lands with funds generated by the 2% Land Bank fee

2024, there were 14 new homes for sale. Sandpiper Place, a de-

that buyers pay when purchasing property on the island. The

velopment off Old South Road, has provided the largest supply

combined total of conservation lands now tallies 17,225

of new homes. With this slow and steady outlook, it seems likely

acres, or 55.8%, of Nantucket. Looking at supply today,

that values will be strong, and buyers will need to exercise pa-

there are 20 parcels of land available for sale, and only 3 of the

tience while looking for their next home. However, staying on the

parcels are one acre or larger.

sidelines may ultimately cost a buyer more in the long run given Nantucket’s robust appreciation.

17 ANNUAL REPORT 2024

HOME SALES BY AREA TOWN

66

MID-ISLAND

40

SCONSET

20

SURFSIDE

20

15

TOM NEVERS

15

BRANT POINT

14

MADAKET

12

HUMMOCK POND

10

WEST OF TOWN

SOUTH OF TOWN

8

NAUSHOP

7

POLPIS

7

SANDPIPER

6

WAUWINET

MIACOMET

5

CISCO

4

MADEQUECHAM

2

SHAWKEMO

2

DIONIS

SHIMMO

2

MONOMOY

2

POCOMO

1

QUIDNET

1

SQUAM

NASHAQUISSET

MIDDLE MOORS

FISHER’S LANDING

QUAISE

TUCKERNUCK

18

1

ANNUAL REPORT 2024

1

0

0

CLIFF

8 6 2 1

0

NAVIGATING VACATION RENTALS

SHIFTING TIDES: STEADY AMIDST CHANGE

As real estate agents, a common question on Nantucket is, “How is the rental market?” Despite ongoing debate over the last three+ years on short-term rental restrictions and the rising cost of vacationing on Nantucket overall, the vacation rental market is surprisingly consistent.

Comparing 2024 to 2023: While Great Point Properties’ rental dollar volume and lease count remain flat compared to 2023, the island-wide notion is that vacation rental activity is down. While we are certainly seeing people opt to vacation elsewhere due to increased pricing on island, 40% of Great Point Properties tenants are repeat tenants for the 2024 season.

We saw an increase in arrivals across the board, with the exception of July. We can attribute this to a higher interest in shoulder seasons, with fewer crowds and increased availability of prime rental properties.

ARRIVALS 2024 JUNE

188

JULY

282

35% 21%

AUGUST

316

SEPT

67

18% 8%

The Debate on Short-Term Rentals Continues: Nantucket, like many vacation destinations, has been actively addressing and, in many cases, debating short-term rental regulations to balance the interests of homeowners, tourists, and residents.

Once again, there were Warrant Articles proposed on both sides of the STR debate at the Town Meeting and again at a Special Town Meeting, and once again, there was no resolution. Recently, there have been increased efforts by the Town to regulate the market, which include registration requirements and enforcement of noise and occupancy standards. Here’s what’s been going on: Community Impact Fee New for 2025, there is now an additional 3% tax for homeowners renting two or more properties on Nantucket that are held under the same ownership. This includes renting a main house and a cottage separately. 3.95% of our active properties are subject to this fee, which was instituted to limit purely commercial use of homes.

Short-Term Rental Registration and Permitting Homeowners who rent their homes for less than 32 consecutive nights to various tenants must register their properties with the Nantucket Board of Health to obtain the new local permit. This is in addition to the state Room Occupancy Permit. The Town has struggled to keep up with the registration process and has postponed the deadline for registration from January 1, 2025, to “two to three weeks before their first lease.”

Ongoing Short-Term Rental Legality Debate at Annual Town Meeting This past September, for the fifth time in the past four years, Nantucket voters turned down short-term rental zoning bylaw amendments. The next time the issue will be visited is at Annual Town Meeting in May 2025.

At this point, both sides of this debate are growing weary. There have been some calls for us to move on as there does not seem to be enough common ground, and there are other issues that need addressing. However, we still advise any owner or buyer to anticipate that some level of rental regulation will reach Nantucket.

Looking Forward - 2025 Thus Far: As of mid-December, Great Point Properties booked 50% of the lease volume we did in 2024. This is on track and typical of our booking cycle, even before hitting the core booking months of January and February.

With all these factors considered, Great Point Properties rental figures are healthy and consistent with previous years. However, challenges such as regulatory changes, rising costs, and limited housing availability could impact future seasons. Property owners who adapt to these shifts, offering high-quality, well-maintained, and unique experiences, will likely continue seeing strong rental income.

19 ANNUAL REPORT 2024

GIVING BACK

ETHAN ULMER

AMBER CANTELLA

L I Z F I N L AY

I support the Nantucket Conservation Foundation and serve on their Associates Board. NCF protects our island’s open space, preserving Nantucket’s natural beauty while providing trails and outdoor activities for all to enjoy.

I am thrilled to be the newest Board Member of The Nantucket Dreamland Foundation, a nonprofit organization offering live theatre, films, social events and so much more. I believe this is crucial to maintaining the vibrancy of our island life. I have such fond memories of my daughter starring in their very first production as a young child!

I have been involved with Palliative and Supportive Care of Nantucket for the past few years, serving on the Dreamcatcher Committee and as a patient care volunteer. Being a part of this amazing organization has been very fulfilling and I am thankful for this new opportunity.

ALEXA COLEMAN

S A M PA R S O N S

C A RY T U R N E R

I have been honored to be a part of Nantucket Student Lacrosse for the last 10 years. I have served in various board positions and coached multiple teams. We have gone from a single team of 20 girls to offering 6 teams in 2025 at various levels. I am proud to be part of this vital offering to our island community.

I love the Harvey Foundation and what they do for the kids in our community.

The annual Run for Robin is always a great day where the community comes together on a cold November morning to participate in a run from the Sconset Casino to Sankaty and back.

Seeing how many people ‘show up’ on this island is inspiring.

I have served on the board of the Samaritans of Cape Cod & The Islands for the past three years, and am the only board member from Nantucket.

We have seen remarkable growth in the organization with the launching of the #988 Mental Health Crisis Line. We just became accredited by the International Council for Helplines- huge accolades!

BILL LIDDLE

T R A C Y C U L L I N A N E & S A M PA R S O N S

GREG MCKECHNIE

Nantucket Community Sailing gets people of all ages out on the water and offers a unique way to see the island. It’s been an honor to serve on the NCS board, volunteer for their annual Nantucket Race Week, and this year, participate in the Opera House Cup.

The Warming Place is a newer island organization that helps families in need. They host a shelter with meals during the winter months, and so far this year, Nantucket has had 55 registered participants. They offer volunteer opportunities for two hours a night and you get to meet some lovely members of our community.

I am proud to serve on the board of the Linda Loring Nature Foundation, which uses its 275-acre property to further educate the community about Nantucket’s unique ecosystem. From trail tours to hands-on experiences for the kids, LLNF is imperative to the growth and success of Nantucket’s open spaces.

20 ANNUAL REPORT 2024

WHAT TO KNOW Zoning: Nantucket has twenty different zoning areas across the island. The zoning map is a patchwork indicating the allowable density and use. The island’s zoning varies from industrial to protective moorlands management. Lot sizes can vary from minimums of 5,000 square feet to 10 acres. Along with lot size, allowable ground cover ratios, and setbacks are defined within our zoning. Many properties were created and built before Nantucket’s zoning laws and if they are not conforming to the regulations, they are grandfathered as pre-existing and non-conforming lots of record.

Water and Waste: The island is fortunate to have an aquifer below its surface. The Town water, managed by Wannacomet Water Company, has wells ranging from 75’ to 150’ in depth that draw on the aquifer and distribute it to the Town’s water distribution system.

More rural areas have private wells. As for waste, the more densely populated areas of the island, like Sconset Village, Nantucket Town, and Mid-Island, have access to connect to the Town’s sewer system. The sewer is pumped to a waste treatment plant on the South Shore. Less densely populated areas or outlying areas do not have Town sewers, and private septic systems serve homes. Several sensitive water protection zones require more advanced systems.

As a general rule of thumb, a more environmentally sensitive system will be required if a property is in proximity to the Harbor, Hither Creek, or freshwater ponds.

Historic District Commission: The Historic District Commission, commonly referred to as the HDC, is the island’s architectural review board. Exterior changes to any building require approval from this board. The board consists of five elected members with three alternate members. The public meetings are conducted weekly, and the applications can vary from a front door paint change request to the approval of a harborfront estate.

Any project requiring a building permit that would involve exterior alteration would first require approval from the Historic District Commission. The HDC was established to maintain and preserve the island’s amazing collection of historic homes while providing a design context for new construction. Building with Nantucket in Mind is a terrific book that provides context and illustration for designs considered appropriate on Nantucket.

Nantucket Conservation Commission: The Conservation Commission, often called the ConCom, is a regulatory board consisting of seven appointed members and an administrative staff that monitors and safeguards the island’s water resources.

Many island properties are subject to wetland regulations. As a general rule, any kind of land alteration/construction within 100’ of an identified wetland is subject to the Conservation Commission. As a homeowner or potential buyer, it is important to seek expert advice from a licensed surveyor for any site with wetlands.

General: Nantucket is nearly 30,000 acres, or 47 square miles, in size, and its population varies from around 14,500 in the winter months to upwards of 80,000 in the peak of summer. Nearly 12,500 houses are spread across the island and powered by electricity from an undersea cable from Cape Cod. The island has one hospital and one school system bolstered by two popular private schools serving pre-K through 8th grade. Nantucket is a Town, county, and an island.

IN THE NANTUCKET REAL ESTATE WORLD The island’s elected body is the Selectboard, consisting of five elected volunteers. The island’s legislative body is an Annual Town Meeting. These two bodies are administered by a town manager.

Nantucket Tax Rate and Budget: The island’s annual operating budget is about $131,000,000, plus additional capital expenses, which bring the total budget close to $150,000,000.

Like most towns, the main expenses are safety and education.

The majority of tax revenue comes from property taxes. The 2025 rate is $3.28 per $1,000. It is worth noting that in 2024, $13,678,170 was generated from room occupancy taxes that include taxes collected by short-term rental homeowners and lodging establishments.

Short-Term Rental Regulations: The Nantucket government and voters have struggled with short-term rentals and proposed regulations. The island has a history of homes being rented weekly, but its popularity, combined with the demand for vacation home rentals, has culminated in a heated debate over the best practice for the island. Four years of Annual Town Meeting debates, along with a court ruling, have yet to clarify the future direction of STRs, but it is reasonable to assume that there will be regulatory changes in the coming years.

Conservation: Nantucket is closing in on nearly 50% of the island’s land under conservation or protection. The largest steward of conservation land, with 9,010 acres in protection, is the Nantucket Conservation Foundation. Several of their popular properties include Sanford Farm, Squam Farm, the Middle Moors, and Tupancy Links. The Nantucket Island Land Bank is the second-largest conservation group, managing 3,373 acres.

The Land Bank continues to acquire land for public benefit through revenue generated by a two percent transfer fee paid on all transactions by buyers. In total, nine very active conservation organizations contribute to keeping portions of the island’s landscape open, with 17,225 protected acres. Check out the Coast to Coast walking trail network if you have an interest in enjoying the amazing collection of open lands.

Beach Access: The island is unique, with abundant access to its 82 miles of beaches. Popular south shore beaches like Cisco and Surfside to calm-water beaches along the North Shore in Dionis or near the Jetties all have parking and access. Though our more popular beach destinations tend to be public, many are private. There has been a long culture of property owners sharing their beaches with the public. As guests, we are encouraged to stay away from the fragile dunes, leave only our footprints, and refrain from driving on the beach.

Insurance: Obtaining homeowners coverage for a second home or investment property limits choices, especially when the home has a high replacement value or is considered to be in a higher-risk location. The island has a good selection of insurance companies that can advise on the options available. Some seasonal residents may use an off-island relationship and bundle their Nantucket home with other insured properties.

21 ANNUAL REPORT 2024

NANTUCKET’S CONSERVATION 55.8% of Nantucket is protected conservation land.

The Nantucket Land Bank, which collects a 2% fee on all real estate transactions, generated $27,055,045 in 2024. This funding is used to acquire and manage land for open space, agriculture, and recreational uses. This year, they gained almost 33.78 acres of land on various acquisitions: •

Miacomet Park: In April, NLB received 16.19 acres of conservation land from the Town for habitat mitigation to resolve outstanding environmental permitting obligations for the Town of Nantucket Sewer and Stormwater Department.

•

Mill Hill Park and Dead Horse Valley: In June, NLB received 16.65 acres from the Town in exchange for the ballfields at Nobadeer Farm Road, and small parcels of land along the Milestone Rotary for road and bike path improvements.

•

41 Jefferson Avenue: In November, NLB purchased 41 Jefferson Avenue, a .94-acre waterfront property for $26,000,000, the most expensive real estate transaction of 2024, and the highest residential sale in the state of Massachusetts this year. They intend to use this land in to expand public beach access.

The Nantucket Land Bank now manages 3,373 acres.

In addition to the Land Bank, these island organizations also protect our open space: NANTUCKET CONSERVATION FOUNDATION: Owns and protects 9,010 acres of land, with most open to the public to enjoy.

LINDA LORING NATURE FOUNDATION: A 275-acre wildlife and plant sanctuary.

NANTUCKET LAND COUNCIL: Preserves over 2,500 acres in the Middle Moors, Plains, Squam, and Smooth Hummocks.

THE MASS AUDOBON protects wildlife sanctuaries on Nantucket totaling 950 acres.

THE TRUSTEES OF RESERVATIONS: Preserves historic and ecological properties across

1,117 acres.

THANKS TO ALL OF OUR ISLAND’S CONSERVATION EFFORTS, THE TOTAL AMOUNT OF PROTECTED LAND ON NANTUCKET IS 17,225 ACRES.

22 ANNUAL REPORT 2024

CONNECT WITH US @greatpointproperties @greatpointproperties @nantucketsales @greatpointproperties @gppnantucket @nantucketsales

Stay in the know with Great Point Properties’ weekly newsletter: •

The only real estate office with a newsletter published weekly

•

13,000+ subscribers and an average open rate of 52.9%

•

Get the latest real estate updates and more

1 ANNUAL REPORT 2024

GREAT POINT PROPERTIES TEAM BILL LIDDLE GREG MCKECHNIE

LAURA BELAIR NICOLE BOUSQUET AMBER CANTELLA ERIN CARSON BERNIE COFFIN CAROL COFFIN ALEXA COLEMAN DEBBI CULBERTSON TRACY CULLINANE

2 ANNUAL REPORT 2024

L I Z F I N L AY JIM GARRELS D A W N H O L D G AT E BARBARA JOYCE DENISE LABOMBARD M ICHELE LI NDS TED T SUSIE LOCKE NICHOLE MARKS SARAH MANEIKIS

PA U L A M C A U L E Y S A M PA R S O N S STUART REID BOBBY SABELHAUS EDWARD SANFORD K AT I E S E H O L M C A RY T U R N E R ETHAN ULMER DEBBIE WILLETT

CAROLINE CURNOW EDONA JAKAJ L I LY M A C D O N A L D LIZ MCCUSKER CAROLINE MORRIS SHANE RILEY A L LY U L M E R