Hamptons summer rentals are turning seven figures – per month
Renters will have to pay a pretty penny for summer in the Hamptons this year, but some landlords’ prices can prove stretchy.
South Fork landlords are seeking record-breaking rents for the season, more than $1 million a month in some cases, Bloomberg reported. Owners expect demand to be at least as high as it has been in the first two summers of the pandemic.
The market is punctuated by an eight-bedroom beachfront home in Bridgehampton. According to Bloomberg, the owner of 155 Surfside Drive is asking for a jaw-dropping $1.65 million just for July. Renters looking to save $400,000 could consider another beach front property down the street asking for $1.25 million for the month.
Property values will be determined by what tenants are willing to shell out, but there is a feeling that prices may be too high. Although the East End’s rental inventory is limited, summer stayers have options, including international locations that have reopened following pandemic closures.
“I think some of those prices were a little too inflated,” Corcoran Hamptons broker Susan Breitenbach told Bloomberg.
The Hamptons rental market was hot last summer. There were 16,645 reservations from Memorial Day through Labor Day, totaling $117 million, according to StayMarquis. This was a 9% increase over the previous year.
Short-term rentals have been strong in recent years. According to AirDNA data reported by Bloomberg, the average daily rate for rentals in the Hamptons from May to September increased 22% from 2018 to 2021. Occupancy and average daily rates have jumped year-round during the pandemic .
But there are signs that the other sandal is about to fall off. The number of nights booked from June to August is down an average of 34% from a year ago, data from AirDNA shows. The average daily rate is also falling each month from April to September, including a 14% drop in June.
Seasonal rentals traditionally run from Memorial Day through Labor Day and are not reflected in AirDNA data.
One issue that has arisen for vacation rentals is that state lawmakers passed a law prohibiting landlords from collecting several months’ rent in advance, then enacted a moratorium on evictions that protected squatters, including a real estate agent and a promoter.
In response, East Hampton decided this year to create a way for landlords to collect summer rent in advance, as they did before the law changed.
[Bloomberg] — HoldenWalter Warner