Where Did All the Affordable Rentals in Dix Hills and Huntington Go? Here's How Local Landlords Can Bring Them Back

Real Estate Insights BY Valerie LaBianca | Long Island, NY

If you've tried to rent a modest apartment in Huntington or Dix Hills lately, you've probably asked yourself: why does everything cost so much, even the "small" places? You're not imagining things. Across Long Island , and the country , the affordable, entry-level rental is quietly vanishing. And for local investors and homeowners in our area, that disappearing act is actually a golden opportunity.

As a Licensed Real Estate Salesperson working the Dix Hills and Huntington markets every day, Valerie LaBianca of The Donofrio Team sees this shift firsthand: fewer starter apartments, more competition for the ones that remain, and a growing number of young buyers and renters who feel priced out before they even get started. Here's what's happening , and what local property owners can do about it.

What Exactly Is a "Starter Rental," and Why Is It Disappearing?

Think small ranch homes, studio apartments, single-room occupancies, or the upstairs unit of an owner-occupied duplex, the kind of place a recent grad, a new arrival to Huntington, or a young professional starting their first job could actually afford on their own or split with a roommate. For years, that meant something under roughly $1,500 a month.

That math doesn't work anymore in most of the country, and Long Island is no exception. National housing data compiled by Harvard's Joint Center for Housing Studies shows a striking shift: rentals priced under $1,400 have dropped by roughly 9 million units nationwide over the past decade, while units renting for $1,400 or more grew by nearly 12 million. In plain terms , cheaper rentals aren't just getting more expensive, they're being replaced entirely by pricier ones.

Back in 1990, almost half of all U.S. rental units cost under $600 a month in today's dollars. Today, that figure is a small fraction of that. The bottom rung of the housing ladder is quietly being pulled up.

Why Does This Matter So Much for Young Renters in Huntington and Dix Hills?

Because that first affordable rental isn't just a place to sleep, it's a financial launchpad. It's where a young household builds savings, establishes credit, and slowly puts together the down payment that eventually makes homeownership possible.

Without it, more young adults are stuck in limbo. National surveys show a majority of adults who once moved out of their parents' homes have since moved back in, citing affordability as the top reason. Economics writers have pointed out that younger generations are facing a uniquely tough combination: a difficult labor market, inflation, and a housing market that's left the entry-level rung further out of reach than ever.

For a community like Huntington, with its village charm, waterfront access, and top-rated schools, or Dix Hills, known for its spacious properties and strong family appeal, this creates real tension. Demand for these towns is high, but the affordable options that used to welcome newcomers are shrinking fast.

How Did We Get Here?

This trend didn't happen overnight. Decades ago, cities across the country demolished or converted roughly a million single-room-occupancy units due to poor upkeep, and that inventory was never fully replaced. Layer on top of that a wave of institutional, amenity-heavy rental developments built for high earners, and it's easy to see how the modest, no-frills rental got squeezed out of the market entirely.

The encouraging news? Momentum is starting to swing back. Many states and municipalities are re-examining zoning rules to make it easier to build accessory dwelling units (ADUs), convert basements, and create workforce and co-living housing , openings that individual homeowners and small investors are perfectly positioned to take advantage of.

Who's Actually Filling the Gap? (Hint: It's Not Big Institutions)

Here's something that might surprise you, the vast majority of rental housing in this country isn't owned by giant corporations or investment funds. It's owned by everyday people: your neighbors, local families, and small investors who own just a handful of properties.

These "mom-and-pop" landlords, typically holding between one and five properties, own the overwhelming majority of single-family rentals nationwide and supply roughly 40% of all U.S. rental housing. They also happen to provide the most affordable options available on the private market. In other words, if entry-level rentals are going to make a comeback in places like Huntington and Dix Hills, it's local owners, not national developers, who will lead the way.

So How Can Local Homeowners and Investors Fill the Gap, and Profit While Doing It?

If you own property in the Dix Hills or Huntington area, there are several practical, proven strategies to add affordable rental inventory while boosting your own cash flow:

Rent by the room. Whether structured as a formal co-living arrangement, workforce housing, or a student-friendly setup, renting individual bedrooms while sharing common spaces can generate stronger monthly income than a single traditional lease, though it does require more hands-on management.

Add an ADU. Accessory dwelling units range from simple backyard studios to fully finished guest cottages. Even a modest ADU can pay for itself quickly through rental income, and specialized financing options are increasingly available to help cover the upfront cost.

Convert unused space. A basement, attic, or garage with its own entrance can become a private, self-contained rental without disrupting the main household, a smart way to add income while preserving your own privacy.

Watch for local zoning changes. As zoning reform continues to spread, previously commercial spaces may open up for residential conversion, sometimes creating rare opportunities for micro-units or co-living spaces in high-demand areas.

Is Now the Right Time to Explore Rental Opportunities in Dix Hills or Huntington?

Given the intensity of demand and the incentives increasingly available to support smaller-scale rental housing, this may be one of the best windows in years for both first-time landlords and seasoned investors to reposition their properties. Whether you're considering converting part of your home, exploring an ADU, or evaluating a small multi-family purchase, understanding the local Dix Hills and Huntington market is essential to making a smart, profitable move.

That's where having the right local expertise makes all the difference.

Thinking About Buying, Selling, or Investing in Dix Hills or Huntington?

Valerie LaBianca and The Donofrio Team specialize in the Dix Hills and Huntington real estate markets and can help you evaluate opportunities, from starter rentals and ADU conversions to full home purchases and sales, with the kind of local insight that only comes from working these neighborhoods every day. If you're a homeowner curious about your options, an investor looking to add cash-flowing property, or a renter trying to make sense of today's market, reach out for a conversation grounded in real, local knowledge.

Valerie LaBianca Licensed Real Estate Salesperson, License #40DO1157631 Member of The Donofrio Team 📞 631.499.9191 📍 1772 East Jericho Tpke, Huntington, NY 11743 ✉️ [email protected]