By Peter Sloniewsky

In recent years, Long Island has consistently dropped in population and seen an increase in age of senior residents as younger people move to other states.

According to a Feb. 29 Newsday report, between 2017 and 2022 the population of Long Island decreased by more than 110,000 residents. This is largely due to the high cost of living here. In a 2019 report from the Economic Policy Institute, a family of two adults and two children in the Nassau/Suffolk metro area would need to earn a combined $139,545 per year to live “comfortably.”

The cost-of-living index for Long Island is 147, or 47% higher than the national average, according to the Council for Community and Economic Research.

The area is known for its high property taxes, more than 60% of which go to one of the 124 school districts, each of which contains its own administration. While school property taxes are capped at either a 2% increase or at the inflation rate (whichever is lower), the combination of high property values and consistent school budget increases have continued to drive up taxes. Moreover, there is a $10,000 cap on deducting state and local taxes (known as SALT).

Beyond school taxes, a property tax bill also includes police costs, local governments and salaries for public employees. While a debate regarding the relationship between payment for government and educational services certainly exists, the result is clear — a relatively inaccessible financial environment for young homebuyers or renters.

While the 2023 national poverty level for a family of four is approximately $30,000 per year, indicating a 6% poverty rate on Long Island, local legislators have said that this is a vast underestimate. The real figure should be about $55,500 per year, according to a Newsday report, meaning about 20% of Long Islanders are “structurally poor.”

As Long Island’s population declines, except in some East End towns, the number of senior residents in the 65-plus age group has grown. That being said, if young people are to live here, options do exist.

First, trends are not identical across the area. Properties in the middle of the island are typically more affordable than those on shorelines, and towns in that area are generally more diverse.

The relationship between housing and renting is also important to consider. According to 2021 census data, the majority of renters on Long Island spend more than 30% of their income on rent in a sellers market. However, the median home price has consistently risen and is now greater than $600,000 as demand far outpaces supply.

The foremost solution is to save strategically. In a conversation with TBR News Media, Jolie Powell, of Jolie Powell Realty in Port Jefferson, said that her foremost advice to young buyers would be to “keep saving your money, [and to] hunker down on other items you’re purchasing, because the home is the most important asset. Save, save, save.” She recommended that young buyers in financially stressful situations search for properties in “up and coming” neighborhoods, and generally in the center areas of Long Island.

Powell also stated that grants and assistance were available, and that a strategic young buyer would seek them out. The Federal Housing Administration offers loans with as little as 3.5% down payments for homebuyers, with low closing costs and easy credit qualifying.

Beyond that, Nassau County offers grants to eligible first-time homebuyers, and Suffolk County has offered programs in the past for down payment assistance. Individual towns and other bodies of municipal government can also offer assistance, and organizations like the Long Island Housing Partnership have been touted by local governments as highly beneficial. These organizations can use the New York State Affordable Housing Corporation’s funds, which can be combined with additional county funds to assist buyers with purchases and improvements.

Ultimately, while Long Island’s high cost of living and elevated property taxes continue to drive younger residents away, strategic saving and available assistance programs offer some hope for those determined to make their home here, even as the population trends toward an older demographic.

In a late development, the Town of Brookhaven and Long Island Housing Partnership will launch on Aug. 1 a down payment assistance program, giving first-time homebuyers the opportunity to receive assistance up to $50,000 in down payment/closing costs toward the purchase of an eligible single-family home.