As the Hudson Valley continues to attract buyers looking for alternatives to city living, Greenwood Lake, a municipality within the Town of Warwick, stands out as a community that defies suburban expectations. Straddling the New York–New Jersey border, Greenwood Lake offers a real estate market shaped by its history as a seasonal retreat, distinct infrastructure, and a blend of full-time and part-time residents.
Susan Onderdonk, a real estate agent with Howard Hanna Rand Realty who has specialized in Greenwood Lake for 18 years, says buyers are often surprised by how the area functions once they move past surface-level comparisons to nearby towns. Rather than operating like a typical bedroom community, Greenwood Lake behaves as a hybrid market — part resort, part suburb — where local conditions matter more than broader Hudson Valley trends.
Greenwood Lake’s housing stock is unusually diverse. The area developed from a collection of summer bungalows into a year-round community, resulting in a mix of small, modest homes and high-end lakefront properties. “You might have a tiny house that was originally just a summer bungalow, and then you might have a million-dollar or more property on the lake,” Onderdonk says.
This variety leads to significant price ranges. Recent listings span from $335,000 for smaller, older homes up to $1.5 million for prime lakefront properties, with the median near $550,000. This wide range reflects the area’s transition from a seasonal getaway to a permanent residential destination.
However, unlike most surrounding suburbs, Greenwood Lake lacks some modern amenities. Most homeowners rely on private wells and septic systems. “Most homes do not have municipal water. They have private wells,” Onderdonk explains. While property taxes may be lower as a result, buyers must factor in the cost of maintaining this infrastructure.
Like much of the country, Greenwood Lake faces tight inventory, and the reasons are tied to current economic conditions. Many homeowners are reluctant to sell because they hold low-rate mortgages they secured during the pandemic. “People don’t want to move because they have a great interest rate on their home,” Onderdonk notes. This “golden handcuffs” effect has kept listings scarce.
Despite limited supply, demand remains steady. The area’s appeal is rooted in its recreational opportunities — boating, hiking, skiing — and in its proximity to wineries and breweries, as well as its location about an hour from Manhattan. These factors draw both primary homebuyers and those seeking weekend or second homes.
“There hasn’t been any downtime,” Onderdonk says. “We always have people interested in buying here.” Unlike some suburban markets that ebb and flow with economic cycles, Greenwood Lake’s blend of amenities and location keeps buyer interest consistent.
The rise of short-term rentals has become a defining feature of the local market. Greenwood Lake’s scenic setting and easy access to New York City make it a magnet for Airbnb and other vacation rentals.
For many owners, short-term rentals offer a way to offset the costs of a second home. “A lot of people want a second home, but they also want a way of making an income to help pay for it,” she explains. Some opt for Airbnb, while others choose longer short-term leases, such as two- or three-month rentals, to help cover mortgage and maintenance costs.
Onderdonk sees Airbnb’s growth as a net positive for Greenwood Lake. Owners who rent out their homes short-term often invest in maintenance and upgrades, keeping properties in good condition. “Airbnb has actually been invaluable in this area, because it allows people to make a profit on their home, and they tend to keep the houses much nicer,” she says.
However, not all nearby communities are as welcoming. West Milford, New Jersey, which borders Greenwood Lake, has begun restricting short-term rentals, leading some owners to sell and further differentiating Greenwood Lake’s market dynamics.
One sticking point that buyers encounter is the area’s independent infrastructure. Septic system failures are the most common deal-breaker. Onderdonk strongly advises buyers to conduct both home and septic inspections before closing. “Septic repairs or replacements can be a costly endeavor, and they can take a very long time,” she warns.
Today’s buyers increasingly prefer move-in-ready homes. “A lot of people don’t want to move into something that they’re going to have to do work on,” Onderdonk observes. Homes that are updated and well-located tend to sell quickly if priced appropriately, while those that need significant renovation tend to linger.
Lake views and direct water access remain the most valuable features, often sparking bidding wars when listings are priced realistically. Overpriced properties, by contrast, tend to sit on the market, underscoring the importance of accurate pricing.
Recent years have seen a clear move away from oversized homes. Onderdonk notes that buyers are less interested in maintenance-heavy properties. “People aren’t really looking for these huge homes anymore. That’s rare,” she says.
Buyers are prioritizing practical, efficiently designed homes that are easier and less costly to maintain. Onderdonk says larger properties often come with higher heating and cooling expenses, more frequent repairs, and added challenges in securing routine maintenance services such as landscaping and snow removal.
Instead, buyers are gravitating toward smaller homes with efficient layouts that prioritize storage and everyday functionality. Onderdonk says buyers favor spaces that feel well-designed and modern without being overly elaborate.
Looking ahead, Onderdonk identifies unmet needs in the Greenwood Lake market. “We really do have a huge need for senior housing. We need more areas that have entry-level housing,” she says. The lack of options for both older residents and first-time buyers limits the market’s ability to serve all demographics.
Another challenge comes from automated climate and hazard labels used by major real estate platforms. Onderdonk says these assessments can flag risks, such as wildfire exposure, based on regional modeling rather than local history, overstating hazards that residents rarely encounter, and discouraging buyers unfamiliar with the area.
Onderdonk expects market activity in the Greenwood Lake – Warwick area to increase as new construction in nearby Warwick and continued interest from city buyers bring more movement to the area. Interest rates will remain a key factor, with any decline likely to encourage more homeowners to sell and ease inventory constraints. For sellers, the current environment rewards realistic pricing and strong presentation, as well-prepared homes priced in line with market conditions are more likely to attract buyers and close.
At the same time, Greenwood Lake continues to stand apart within the Hudson Valley. Its combination of natural amenities, independent infrastructure, and proximity to major cities has produced a housing market shaped by local conditions rather than suburban norms. As buyer preferences shift toward smaller, more functional homes and lifestyle-oriented communities, Greenwood Lake illustrates how hybrid markets — part resort, part year-round — can sustain demand over time.
As a long-time resident of Greenwood Lake, I can personally attest to what a wonderful community this is. I raised my two sons here, and they truly benefited from the small-town atmosphere, local sports programs, and resources like our library, youth center, and middle school ski club. It remains a vibrant place where children enjoy the lake and high-quality education through Warwick Valley High School, Chester Academy, and nearby private schools.
Currently, our community is navigating complex housing challenges that I believe require our attention. Some residents have expressed concerns regarding short-term rentals, while others look forward to utilizing them as a source of income and travel opportunities during their senior years.
Many residents have parents or adult children who wish to stay in the area but are struggling to find housing. Between rising prices, competing cash offers, and low inventory, purchasing a home has become increasingly difficult. These challenges extend to the rental market as well, which has seen a significant price spike. I’m anticipating some positive changes in the future that will encourage housing and development growth, while still allowing us to retain the character and small-town feel we love.
UPDATE: This article has been updated to clarify statements made by the source.
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