Hamptons Summer Rental Market Facing a Slump
During the summers of 2020 and 2021, the Hampton summer rental market was sky high. After two years of high demand, however, that is no longer the case this summer: Hamptons homeowners are struggling to rent their properties at the same rates as they have in years past.
"There is a tremendous amount of inventory and people are not renting it. And it’s across all segments, from the very low to the very top of the market," Douglas Elliman's Enzo Morabito told CNBC.
The reason for the lower demand is varied. It could be due to the decrease in worldwide travel restrictions—those who spent previous summers in the Hamptons could now be jetting off to distant summer locations. Or, it could be due to uncertainty surrounding the stock market and rising inflation. People may just not be as willing to splurge on a rental as they have in previous summers.
"The assumption that rents would be sustainable at these elevated levels has been proven to be false," Jonathan Miller, CEO of Miller Samuel, told CNBC. According to Miller, median rental prices fell 26% in the first quarter, and some owners are dropping rents by 30% or more.
Despite the slowdown in the rental market, Hampton home sales are doing just fine: Douglas Elliman’s quarter one report says that "heavy bidding war activity confirmed high demand despite sale declines, largely due to the collapse in listing inventory." The average sales price in Q1 of 2022 was listed at $2.62 million, up from $2.51 in Q1 of 2021.
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