Hamptons homeowners are quickly learning that the sky-high prices they charged the past two summers for renting out their properties are a thing of the past.
A combination of increased international travel, many former renters buying homes and a supply glut have all led to a sudden sticker-slash in the tony Long Island enclave.
“There is a tremendous amount of inventory and people are not renting it,” Enzo Morabito, of Douglas Elliman, told CNBC of the area’s hot new trend toward last-minute summer rental discounts. “And it’s across all segments, from the very low to the very top of the market.”
In stark contrast to 2020, when Hamptons homes were in high demand at higher prices, this summer has started with an oversupply of overpriced options that landlords are hastily cheapening to fill.
The owners of one waterfront rental Morabito represented hoped to get $70,000 a month for the place — but, with hundreds of rentals still available, a potential renter felt confident enough to counter with an offer of $45,000.
“We were hoping the renter would split the difference, but it’s a different market right now,” Morabito said.
Adding to the availability, as well as lower prices: Many well-to-do New Yorkers who drove up prices in years past have skedaddled to Europe this summer, taking advantage of the relatively recently reopened borders. Europeans, however, aren’t again summering stateside just yet, CNBC reported.
The war in Ukraine, rising inflation and fears of a recession aren’t helping Hamptons homeowners’ situation, either.
“There are a lot of questions in the air, about the economy, both locally and nationally,” Harald Grant with Sotheby’s International Realty told CNBC. “It all affects the market.”
Hamptons sales, however, aren’t hurting that badly: Douglas Elliman’s report on the year’s first quarter noted that “heavy bidding war activity confirmed high demand despite sale declines, largely due to the collapse in listing inventory.” It also listed the median sales price at $1.4 million. In July 2020, The Post reported the median Hamptons sales price at $1.08 million.
Source: NY Post