If you’ve been following the real estate market—even casually—you’ve seen the headlines: Record-low inventory. Homes selling instantly. Buyers struggling to find options. On Cape Cod, the story is even more pronounced.

Despite fluctuations in interest rates and national cooling in some cities, Cape Cod’s inventory remains at multi-year lows. Many towns have months—or weeks—of supply at the luxury level. And yet buyer demand, especially from the upper tier, continues to climb.

Here’s what’s driving the persistent shortage—and how savvy buyers are still finding exceptional homes.

1. The Cape Is Truly Supply-Constrained—By Design

Cape Cod is one of the most regulated, environmentally protected regions on the East Coast. This is wonderful for long-term preservation, but it also means:

• Very limited land available for new construction

• Strict conservation guidelines

• Septic and Title V constraints

• Height and density limitations

• Waterfront regulations restricting expansion

Even as demand grows, supply simply cannot keep up.

2. Demographics Have Shifted Permanently

Since 2020, we’ve seen a major behavioral change:

People aren’t giving up their Cape homes anymore.

Retirees are staying longer. Second-home buyers are using properties year-round. Younger families are purchasing earlier in life. And the rise of remote work has turned seasonal homes into primary or hybrid residences.

This “lock-in” effect reduces resale turnover dramatically.

3. New Construction Isn’t Filling the Gap

Even with significant building activity in Chatham, Orleans, Brewster, Mashpee, Osterville, and Falmouth, new construction can’t solve the inventory issue.

Why?

• Limited buildable land

• Rising construction costs

• Long permitting timelines

• High-end buyers reserving new builds before completion

• Contractors booked years in advance

• Custom builds replacing older small homes, keeping net new inventory low

Buyers often think they can “wait for new homes”—but the pipeline is thin and demand is high.

4. High-Net-Worth Buyers Are Expanding Their Cape Footprint

Affluent buyers are increasingly:

• Purchasing for multi-generational use

• Holding properties as long-term assets

• Converting summer homes to full-time residences

• Adding investment properties or guest houses

• Renovating and retaining properties rather than listing them

This behavior further restricts the available pool.

5. Waterfront and Walkable Homes Are Scarce by Nature

Certain segments are chronically limited:

Waterfront + water view

Cape Cod’s shoreline is not easily expanded or redeveloped. Many properties remain in families for generations.

Walkable to town

Village hubs like Chatham, Osterville, Harwich Port, and Ptown have finite footprints. Buyers compete fiercely for these pockets.

Large lots with privacy

Even rarer—especially near water.

So What Are Smart Buyers Doing?

The most successful buyers today are taking a more strategic approach—one that goes beyond simply refreshing MLS alerts.

Here’s what’s working:

1. Getting Access to Off-Market Properties

This has become the secret lever in Cape Cod’s luxury market.

Our team sources off-market opportunities through:

• Direct relationships with homeowners

• Builder and contractor networks

• Private seller inquiries

• Quiet listings

• Past clients considering selling privately

• Legacy family homes not publicly listed

Some of our biggest recent sales never hit the open market.

2. Working with Data-Driven Search Criteria (Not Just Wish Lists)

Buyers are refining their needs into “non-negotiables” and “flexibilities,” which helps avoid missing out on great homes.

3. Acting Quickly—But Strategically

When supply is tight, timing matters. Our most successful buyers:

• Have financing or proof of funds ready

• Understand valuation upfront

• Evaluate renovation potential early

• Are prepared to make strong first offers when necessary

4. Considering Properties Needing Light Renovation

With the right guidance, homes requiring minor updates often represent value. And with GSG’s builder partnerships, buyers gain clarity on scope, budgets, and feasibility.

5. Looking Beyond Peak Towns—Without Sacrificing Lifestyle

Savvy buyers are expanding to emerging luxury micro-markets including:

• East Brewster

• West Falmouth

• South Chatham

• South Orleans

• Truro hillside

• Yarmouth Port village district

• Mashpee waterfront pockets

These areas offer extraordinary value without compromising Cape Cod lifestyle.

6. Planning 12–24 Months Ahead

With limited inventory, many buyers now begin working with us a year or more before they intend to purchase—building a strategy and waiting for the right home.

The Bottom Line

Cape Cod inventory will remain tight for the foreseeable future. But buyers with the right guidance, preparation, and connections are still securing exceptional homes—often before they reach the public market.

If you’re considering a purchase in 2025, now is the time to build a strategy. The market rewards readiness, insight, and deep local relationships—and that’s exactly where our team delivers unmatched value.