Nantucket Island, once among the world's great whaling ports, is a special place 30 miles off the coast of Cape Cod, Massachusetts. Big sister Martha's Vineyard often gets more publicity (in large part due to the First Family's frequent vacations here), but Nantucket offers just as much appeal. Visitors arrive here either usually by a flight into Boston and then a commuter plane to the island; or by a ferry from Hyannis. The month of May is on the horizon, and it's precisely the time when the crowds begin to descend upon this tiny island. While Nantucket maintains many year-round residents, its population swells during the summer months, and the seasonal real estate market is extremely active here. Although Nantucket offers a diverse inventory of residential real estate, if you're financially well-endowed, you'll have a bigger selection of homes from which to choose. Nantucket's cost of living is higher than average, and some of its homes are truly spectacular. In fact, Christie's Great Estates offers several extravagant properties on the island.

The real estate market on the island may be active, but that doesn't mean it's easy to land the home of your dreams here. Like many hot markets (for example, San Francisco), many homes are here today, gone tomorrow. Michael Angelastro of Michael Angelastro Real Estate offers an explanation; he says that approximately 40 percent of Nantucket Island is reserved for conservation. That's a big chunk (the Nantucket Conservation Foundation is the island's largest landowner) of an already tiny island. Of course, it's a good thing that the island maintains lots of open space -- sandy beaches, white cliffs and cranberry bogs -- to enjoy. But of course, that has a price. It means that there's less room to build properties, and the ones that remain can demand the highest price from competitive buyers.

The 1990s, in particular, have seen spectacular growth for the island's real estate market. The island's economy continues to gain in strength due to steady tourism, and the rental market is explosive. In recent years, the official rental season has expanded beyond the traditional summer months and now stretches from late spring into Christmas (the island's charm during the holiday season is a strong attraction for tourists, as well as its warm spring and summer months). Country Village Rentals and Real Estate, a company reaping the benefits of this strong rental market, states on its Web site that approximately one-third of the island is now occupied by structures, one-third has been sanctioned as permanent conservation land, and the remaining third is considered hot property. The premium on properties has created enormous pressure to buy and rent the well-preserved historic homes that do exist on the island. In fact, one of the biggest trends on Nantucket right now is, according to Country Village, an explosion in "non-contigency cash offers" for homes before they're even listed on the market. This pressure has diminished ever so slightly during the past couple of years, but for the most part, the competition remains tight.

The island has imposed various building restrictions that limit future construction and preserve the integrity of existing historical architecture. This undoubtedly will help protect the investments of those who do own or rent these enviable properties, keeping property values high; and will help keep the market very competitive.

Angelastro says that during 1996 and 1997, his firm sold an average of 320 houses and 230 lots each year. In 1996, he adds, Nantucket Island had more than 30 sales exceeding $1 million each. 1997 was a record-breaking year, with a whopping 52 sales that exceeded $1 million each. So Nantucket Island clearly is a playground for the rich. If you can afford to buy here, you can count on the substantial price appreciation of your home. Take a moment to peruse Christie's inventory (head to www.preferredproperties.com); it's a treat even if such homes will remain only in your dreams.

That doesn't mean you can't visit and thoroughly enjoy Nantucket Island, however. A great part of Nantucket's charm is derived from its quaint cottages, its bed-and-breakfasts, its fine dining, its small retail shops, antique stores and art galleries and its small-town traditions (including the annual Daffodil Weekend, Cranberry Festival and Christmas Stroll). Outdoor recreational opportunities are many, from fishing to golf to whale watching (an absolute must for any visitor to the island), surfing, horseback riding, sailing, biking and even clamming. Or, of course, you may engage in the island's favorite pasttime: lying on the beach and doing nothing at all.

This out-of-the-way destination offers the best examples of Yankee pride and simplicity. Nantucket Island is worth a visit (or even a splurge rental) not only because of its spectacular scenery and quaint atmosphere, but also its devotion to the preservation of nature. Nantucket, indeed, is one of the nation's few remaining places where capitalism and nature are in cooperation -- thanks to the careful planning and forward thinking of its loyal residents and leaders. Whether the island can maintain this balance without sacrifice on either side -- particularly in the face of one of the nation's most pressurized real estate markets -- remains to be seen.

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Published: May 3, 1999

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Editor's Note: This article reflects the opinions of Courtney Ronan only and not necessarily the views of this or any other publication, organization or Website owner.