Why Renovation Risk Has Quietly Exploded in Nassau and Suffolk Counties
Selling a home on Long Island has always required careful planning, but 2026 has introduced a new layer of risk that many sellers still underestimate. Renovation costs are no longer just higher. They are less predictable, more time-sensitive, and far more exposed to forces outside a homeowner’s control.
For many sellers in Nassau and Suffolk Counties, selling as-is has shifted from a fallback option to a deliberate strategy to preserve net proceeds and avoid compounding risk.
This expanded guide explains why.
Why 2026 Changed the Renovation Equation on Long Island
Three structural forces are now working against sellers who renovate before listing:
- Tariffs that have permanently increased material costs
- A severe shortage of skilled labor driven by policy and enforcement changes
- Longer project timelines that amplify carrying costs in a high-tax, high-interest environment
On Long Island, where property taxes, permitting requirements, and contractor availability are already challenging, these forces hit harder than national averages suggest.
The Tariff Tax on Construction Materials
In late 2025 and early 2026, new trade policies reshaped the cost structure of common home improvements. These increases are not theoretical. They are embedded in contractor quotes today.
Softwood Lumber and Cabinetry
Softwood lumber, which underpins framing, decking, and many interior projects, now carries a 10 percent duty. Imported kitchen cabinets and bathroom vanities face tariffs ranging from 25 to 50 percent.
For Long Island sellers, this is critical. Kitchens and baths are often the first upgrades considered before listing.
A renovation that cost $15,000 in 2023 is now commonly priced at $22,000 or more, even when scope and materials remain similar. This increase is driven almost entirely by trade policy and supply chain volatility, not by quality upgrades.
Metals and Home Systems
Steel and aluminum products used in roofing, HVAC systems, appliances, and structural components now face tariffs as high as 50 percent.
Even so-called budget appliances have increased 8 to 10 percent in price due to their steel content. On Long Island, where many homes require HVAC updates to meet buyer expectations, this creates unexpected budget overruns.
The Pass-Through Effect
Industry analysts estimate that 75 to 90 percent of tariff-related cost increases are passed directly to consumers.
In practical terms, a kitchen quote you received in 2024 for $20,000 is likely $26,000 or higher in 2026, before accounting for labor delays or design changes.
Buyers do not reward sellers proportionally for this added spend. That gap comes directly out of net proceeds.
Labor Scarcity and the Immigration Premium
Material costs are only half the story. Labor has become the larger constraint.
Construction has long relied on immigrant labor, which historically made up roughly 25 percent of the workforce. Recent policy shifts and enforcement changes have reduced that labor pool, creating what contractors now describe as a contraction of capacity.
Higher Wages and Priority Pricing
The industry currently faces a shortage of more than 430,000 skilled workers nationwide. As a result, construction wages are rising 6 to 8 percent annually, outpacing inflation in the broader economy.
On Long Island, this shows up not only as higher hourly rates, but as priority premiums. Contractors increasingly charge extra simply to take on smaller residential jobs or to commit to a start date.
Site Disruptions and Delays
Increased enforcement has also led to intermittent site disruptions and a loss of semi-skilled labor. This has created a missing middle where crews exist, but not in sufficient numbers to move projects efficiently.
For sellers, this means schedules slip even when budgets hold.
The Labor Float Effect
Because crews are stretched thin, renovation timelines have expanded significantly.
A bathroom remodel that took three weeks in 2022 now routinely takes five to seven weeks in 2026. Kitchens often run even longer.
Each extra week adds mortgage interest, property tax accrual, insurance, and utilities. On Long Island, where annual property taxes often range from $10,000 to $18,000, delays are expensive.
How This Plays Out Locally on Long Island
These national forces compound local realities.
Nassau County
In towns like Hempstead and Oyster Bay, pulling permits often locks sellers into inspection timelines that extend well beyond original contractor estimates. Labor delays and tariff-driven reorders amplify these delays.
Suffolk County
In Brookhaven and Babylon, distance and contractor prioritization create longer lead times before work even begins. Material price increases during those waiting periods further erode projected returns.
In both counties, renovation risk is no longer just about cost. It is about time, compliance exposure, and the inability to control variables.
Renovate or Sell As-Is: Updated Long Island Math
Consider a typical Long Island home.
Renovate First
- Post-renovation sale price: $450,000
- Renovation cost inflated by 2026 tariffs and labor: $40,000
- Agent commission at 5 percent: $22,500
- Four months of holding costs: $12,000
Net proceeds: $375,500
Sell As-Is for Cash
- As-is sale price: $375,000
- No commission
- No repairs
- Seven to ten day close
Net proceeds: $375,000
The feared loss often disappears once real 2026 costs are accounted for.
What Selling As-Is Still Requires
As-is does not remove disclosure obligations.
Sellers must still disclose known material defects, including leaks, mold, foundation issues, and electrical hazards. Disclosure laws in 2026 are stricter than in prior years, not looser.
Transparency protects sellers. Silence creates liability.
Final Guidance for Nassau and Suffolk Sellers
In 2026, selling as-is on Long Island is rarely about convenience alone. It is a rational response to:
- Tariff-driven material inflation
- Labor scarcity and priority pricing
- Extended renovation timelines
- High carrying costs tied to taxes and interest
For many sellers, the smartest move is not to renovate more, but to stop exposure earlier and protect net proceeds, time, and certainty.