Luxury Market Insider: Grandeur and Restraint Along The Hudson
The Hudson Valley is one of America’s oldest and most storied luxury markets, established in the 18th century by our nation’s premier industrialist families, including the Astors, Vanderbilts, Carnegies, Livingstons and Roosevelts.
Originally a favored destination for wealthy New Yorkers to build vacation homes set on massive properties within close proximity to the city, the allure and landscape of this pastoral province remain largely unchanged today. The Luxury Division sat down with Compass’ Hudson Valley experts to learn more about this legendary luxury market.
“A Remarkable Country Lifestyle”
The grand country residences of the Hudson Valley were built beginning in the 1700’s, with many of the region’s finest properties sited in Millbrook and along the Hudson River in towns such as Rhinebeck and Red Hook. As the years passed and the times changed, demand for the Hudson Valley has remained as strong (if not stronger) than ever. Compass - Hudson Valley Byron Anderson explains, “It has always been a preferred second, third or fourth home destination for wealthy New Yorkers in finance, law, entertainment, and now tech and creatives, due to its enviable proximity to Manhattan and its remarkable country lifestyle.”
Hudson Valley residents enjoy fox hunting, Gentleman’s Farming, fishing, and the equestrian arts. These pastimes along with its bucolic beauty just two hours from Manhattan is a wonderful way to divide life. That said, what people are most interested in when they purchase a home in the Hudson Valley is privacy. Compass - Hudson Valley Candy Anderson details, “These parcels are quite large. Well hidden behind the unassuming gate to a half mile driveway may lie a magnificent $50 million home, which one could never imagine as they drove past on a quiet country lane.”
Many of these significant estates have remained in the same family for over 200 years across five or six generations. Candy continues, “When we sell the most special Hudson Valley properties, marketing them is a rare and memorable privilege.”
“The Napa Valley of the East Coast”
Compass Chief Evangelist Leonard Steinberg is a Hudson Valley devotee and business owner, and proudly touts the region’s refined sophistication. “When people think of New York, they think of New York City. But New York State has superb scenic beauty, farms, rolling hills and mountains. The Hudson Valley is like the Napa Valley of the East coast: agricultural, discreet, rich in culture and history. There is a true appreciation of natural beauty here and an understanding of understated elegance.”
With this cornucopia of lifestyle and restrained sophistication, a new customer is emerging in the Hudson Valley, and there are more luxury buyers than luxury home sellers. Byron points out, “This is not a place where people need to sell. These are multigenerational properties, with limited inventory. Our team recently represented a property that was so large, it took two of us to show it to a single buyer over a span of two hours.” Candy continues, “We had three to five showings per week of this property with highly qualified buyers, and there were multiple offers on the home. Those who did not ultimately get the home, we need to find something for them.”
One way for buyers to unlock the inventory shortage has been to expand their search beyond the traditional Hudson Valley luxury towns. Compass - Hudson Valley/Northern Westchester agent Adam Hade explicates, “The once established Hudson Valley luxury markets expanded into lesser known towns during the pandemic. Any significant property within a 1.5 hour drive from Manhattan became a possibility. This led to record sales outside of the traditional luxury market, and far more transactions at higher prices across the region.”
Another recent Hudson Valley phenomenon is the arrival of the luxury new build. Compass - Hudson Valley/Northern Westchester agent David Turner details, “Brooklynites are setting their sights here, bringing their hip, cutting edge tastes and creating a new buyer trend toward modern architecture. Once upon a time, the local builders and investors would rarely risk significant capital on this sort of ultra modern new build. But rather than the charming colonial or antique farmhouse, the most expensive Hudson Valley home in contract right now is an $8 million+ ultra modern design with lots of space and natural light. ”
“A Sensibility That Has Become Its Own Brand”
Hudson Valley residents eschew density and overdevelopment, and land trusts have been created to preserve its rural integrity, further elevating the region’s desirability. “There is a Hudson Valley design and aesthetic sensibility that has become its own brand that’s known internationally,” proclaims Leonard. “Hotels of world-class distinction often awaken people to new areas, and this is happening with the arrival of these hotels to the Hudson Valley.” The Maker Hotel and Wildflower Farms, Auberge Resorts Collection are two examples of stunning new hotels with the “Hudson Valley brand,” with the ultra chic Soho Farmhouse and Six Senses hotels coming soon.
The Hudson Valley’s global appeal has expanded further with its outstanding cultural offerings, including the Storm King and DIA Beacon museums, showcasing the works of modern art powerhouses like Richard Serra and Andy Warhol. The renowned Culinary Institute of America is set along the Hudson River, and its chef graduates have opened a bounty of Hudson Valley restaurants which are simultaneously upscale, approachable and fun. Candy smiles, “It’s luxury yet relaxed, elegant yet refined. It’s a rarified life here.”
Byron notes in the years since the pandemic, another shift has been the big surge of buyers from rural California, which enjoys similar proximity to a major city (Los Angeles), country setting, and low traffic. Perhaps this property Byron describes and is listing soon will attract its buyer from The Golden State. “It is in Millbrook on 120 acres, extremely private with arguably the finest views in the Hudson Valley,” Byron describes. “Unusually, the owner built it from the ground up and it is a Tuscan villa, designed in the absolute best of taste, with imported fireplaces and doors from 13th century monasteries.” Candy adds, “At a likely list price of about $13 million, this is a remarkable Hudson Valley opportunity.”
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