Riverhead’s Retail Renaissance: How Tanger Outlets’ Expansion is Driving a Housing Boom in 2025
The economic landscape of Riverhead, New York is experiencing a remarkable transformation in 2025, as Tanger Outlets emerges as the town’s biggest tax revenue generator and drives unprecedented housing demand across Long Island’s East End. This retail powerhouse, strategically positioned at the gateway to the Hamptons, is catalyzing a housing market surge that’s reshaping the entire region.
The Economic Engine Behind the Boom
Long Island’s largest outlet center featuring over 165 manufacturer designer outlet stores has evolved far beyond its original retail mission. “This is a national trend that’s going on because retail has taken a big hit with online shopping,” explains Supervisor Tim Hubbard, highlighting how Tanger has adapted to modern economic realities. The outlet center’s transformation includes new zoning that now allows restaurants for the first time, creating a more comprehensive destination that attracts millions of visitors annually.
The ripple effects are substantial. The Tanger Outlets at Riverhead get millions and millions of shoppers annually, creating a massive economic footprint that extends well beyond retail sales. This influx of visitors has created a robust job market, with Long Island creating 91,000 non-farm jobs, 86,000 private-sector jobs and 25,000 healthcare jobs from 2021 to summer 2024.
Housing Market Surge Reflects Economic Growth
The housing market data tells a compelling story of growth and opportunity. The median home sold price in Riverhead was $580,833 in May 2025, up 2.8% from last year, while the average Riverhead, NY home value is $606,968, up 4.2% over the past year. This steady appreciation reflects the area’s increasing desirability as both a residential destination and investment opportunity.
Particularly noteworthy is the performance across different housing segments. The home price for 2 bedroom homes increased by +4.5%, 3 bedroom homes increased by +3.5%, 4 bedroom homes increased by +9.0%, and 5 bedroom homes increased by +9.9%, indicating strong demand across all price points and family sizes.
The Moving Services Connection
This economic boom has created unprecedented opportunities for relocation services, as families and businesses seek to capitalize on Riverhead’s growing prosperity. The demand for reliable Moving Companies Riverhead has surged alongside the housing market, with residents recognizing the area’s potential for long-term growth and stability.
Professional moving services have become essential as 30% of Riverhead homebuyers searched to move out of Riverhead, while 70% looked to stay within the metropolitan area, with 3% of homebuyers nationwide searching to move into Riverhead from outside metros, particularly from San Francisco, Seattle and Los Angeles. This migration pattern demonstrates Riverhead’s appeal to both local residents seeking better opportunities and out-of-state buyers attracted by the area’s economic vitality.
Infrastructure and Development Supporting Growth
The region’s commitment to supporting this growth is evident in major infrastructure investments. Smithtown has received tens of millions of dollars in funding for sewer infrastructure, including $21.3 million from a New York State program in 2024, addressing one of the key barriers to housing development. Additionally, the Long Island Forward Housing Program provides no-cost technical assistance to Long Island municipalities seeking to develop multifamily housing and redevelop underutilized properties, helping communities revitalize neighborhoods, support economic growth, and increase housing availability.
The state’s broader commitment is reflected in the $350 million Long Island Investment Fund, created to drive economic growth and address critical needs across Nassau and Suffolk Counties, supporting transformative projects that create jobs, strengthen communities, and drive regional growth, with a particular emphasis on housing development.
Market Dynamics and Future Outlook
The current market conditions present unique opportunities for both buyers and sellers. Riverhead is a Neutral Housing Market, which means prices tend to be reasonable and homes stay on the market for a typical length of time, providing balanced conditions that favor neither buyers nor sellers exclusively.
For those considering relocation to take advantage of these opportunities, the timing appears favorable. Experts don’t expect a housing market crash, thanks to steady demand and limited supply, with housing inventory rising for 20 straight months year over year, giving buyers more options.
Strategic Positioning for Growth
Riverhead’s strategic location continues to be a major asset. Situated at the gateway to the Long Island’s East End, the Tanger Outlet Center is conveniently located just off the LIE at Exit 73, providing easy access for both residents and the millions of annual visitors who contribute to the local economy.
The transformation extends beyond retail, with developments like Station Yards in Ronkonkoma and Shoregate in Bay Shore fostering job creation and competitiveness, helping young professionals by giving them an option to stay on Long Island.
As 2025 progresses, Riverhead’s economic boom shows no signs of slowing. The combination of retail expansion, strategic infrastructure investment, and supportive housing policies has created a perfect storm of opportunity that’s attracting residents, businesses, and investors alike. For those considering a move to capitalize on this growth, the time to act is now – before this well-kept secret becomes common knowledge and prices reflect the area’s full potential.