Why Staten Island Home Prices Aren't Dropping Despite High Mortgage Rates

Oct 26, 2026

Staten Island prices have held up because there are few homes for sale and many owners are locked into low rates. About 78% of local homeowners with mortgages have a rate below 5%, one broker reports, so few want to sell and trade into a 7% loan. Low supply props up prices even when buyers have less borrowing power.

How tight is Staten Island's inventory?

In early March 2026, the borough had about 921 active listings. By April, inventory sat roughly 26% to 29% below what a balanced market would have. A balanced market generally has five to six months of supply.

What is the rate lock-in effect?

Homeowners who bought or refinanced in 2020 through 2022 often have rates under 5%. Selling means giving up that rate and taking one near 7.28%, so many stay put. Market reports put the share of local mortgage holders below 5% at about 78%. Fewer sellers means fewer listings.

Why can't Staten Island just build more?

Geography and zoning limit large-scale development on the island, so new supply is slow to arrive. That keeps the market tight in good times and bad.

Who is still buying?

The same March report described three groups: first-time buyers, move-up buyers, and two-family buyers who count on rental income to offset costs. It also said bidding wars were easing but that competition remained real at the entry-level price point. One brokerage reports that equity from Brooklyn sales is also drawing buyers across the bridge. Treat that as one firm's view rather than a measured trend.

What would make prices fall?

Prolonged rates near or above 7% would reduce what buyers can borrow. More owners being forced to sell by job loss or other pressure, or a sudden jump in listings, would shift the balance. None of that showed up in the spring data, and we did not find post-September figures.

Frequently asked questions

What is the lock-in effect? It is when homeowners keep their low-rate mortgages instead of selling, which shrinks the number of homes for sale.

Is Staten Island a seller's market? The April 2026 report described it that way, citing low inventory and faster sales. Check current numbers, since conditions can change month to month.

How many homes are for sale on Staten Island? About 921 were listed in early March 2026. The number moves with the season.

Will more homes come on the market if rates fall? Possibly. When rates drop, some owners may feel freer to move, which could raise inventory. Prices would then depend on how many buyers return at the same time.

Want to know how the inventory looks on your block? Call DiTommaso Real Estate at 718-667-8000.