Why Home Prices Feel So High — And What Buyers on Martha’s Vineyard Can Do
By Jen O’Hanlon | The O’Hanlon Group at Compass
Scroll through your social feeds and you’ll see plenty of theories about why homes feel so expensive these days. One of the most common? Big investors are buying everything up.
And that’s not just internet chatter — many Americans truly believe it.
(Source: Searchlight Institute/Tavern Research via Keeping Current Matters)
Nearly half of Americans (48%) say investors are the main reason homes cost so much. But while that theory makes for a catchy headline, the data tells a different story.
The Investor Myth
According to Realtor.com, only about 2.8% of all home purchases last year were made by large investors — those owning more than 50 properties. That means roughly 97% of homes were bought and sold by regular buyers and sellers, not corporate giants.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”
So, if it’s not investors, what’s really driving prices higher?
The Real Reason: A Persistent Shortage of Homes
Housing costs have surged because of a simple imbalance — too many buyers and not enough homes for sale.
Nationally, home construction hasn’t kept pace with population growth for decades—the U.S. is now millions of homes short of demand. Building new homes has become slower and more expensive due to higher material costs, labor shortages, and tighter regulations — factors that have contributed to long-term under-building across the country. At the same time, many existing homeowners are staying put, reluctant to give up historically low mortgage rates.
That combination has created a long-term inventory shortage — and when supply stays tight, prices rise.
How This Plays Out on Martha’s Vineyard
Here on the Vineyard, we’re seeing the same story in a very local way — just as national housing reports show inventory gains that still fall short of demand. As of mid-October 2025:
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There are about 220 homes currently on the market, up from 192 at this time last year — a roughly 15% increase in available inventory.
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However, back in 2019, before the pandemic market surge, there were 324 homes available. That means we’re still about 32% below pre-COVID levels — a significant gap.
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The median sale price sits around $1.66 million, up slightly from $1.55 million in 2024 — showing that even modest improvements in inventory haven’t translated to major price relief.
The takeaway: while buyers have a bit more to choose from than last year, the Vineyard housing supply is still far from balanced. Limited land, seasonal use patterns, and zoning restrictions keep inventory tight, which continues to support strong pricing across most towns.
What Buyers Can Do
Even in a tight market, opportunities exist — especially with the right strategy.
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Get prepared: Have your financing or cash plan ready so you can move quickly when the right home appears.
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Think creatively: Consider expanding your search to different towns or neighborhoods, or explore properties that may need light updates — they often present the best value.
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Watch for motivated sellers: Homes that have been on the market longer or need work may offer room for negotiation.
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Work with local experts: Understanding subtle town-to-town nuances, pricing trends, and off-market opportunities is key. The O’Hanlon Group’s long-time local experience gives our clients a true advantage.
The Bottom Line
Homes feel expensive today not because investors have taken over, but because there simply aren’t enough to go around — and that’s especially true on Martha’s Vineyard.
The good news? Inventory is slowly improving, and a more balanced market may be on the horizon.
If you’re thinking about buying or selling in the coming months, let’s connect. At the O’Hanlon Group, we help clients find well-priced homes, negotiate smartly, and make confident moves in any market.
