Hamptons landlords are cutting summer rental prices

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Hamptons landlords are cutting summer rental prices

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. 

hamptons rental rates summer 2022 Hamptons homeowners are quickly learning that the sky-high prices they were able to charge these past two summers are a thing of the past. A combination of increased international travel, many former renters buying homes in recent years and a supply glut have led to a sudden sticker slashing 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 towards 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 to an over-supply of overpriced options which landlords are hastily cheapening to fill up. 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. Many of the 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.” As well, it listed the median sales price at $1.4 million. In July 2020, The Post reported the median Hamptons sales price at $1.08 million.
Landlords are finding it impossible to charge the same rates they did in recent summers.
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hamptons rental rates summer 2022
Inflation and the war in Ukraine are also impacting rental prices, experts say.
Getty Images
hamptons rental rates summer 2022
Increased international travel and a supply glut, among other factors, have led to this summer’s lower rental prices.
Getty Images/iStockphoto

“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. 

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