Summer rentals in the Hamptons are down 30%

NBC News

4 days ago

Summer rentals in the Hamptons are off to a chilly start to the season, as unrented homes start to pile up and sales slow, according to brokers.
Hamptons rentals are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals say their rental business is down between 50% and 75%.
'People are holding on to their money,' said Enzo Morabito, head of the Hamptons-based Enzo Morabito Team at Douglas Elliman. 'They don't like uncertainty.'
Of course, Hamptons renters often wait until the last minute to book July and August rentals. Brokers say this year may be starting even later due to cold, rainy weather in May. Some renters may also be holding out for better deals in a Hamptons market that has become far more expensive after Covid.
Yet brokers and renters say privately that the volatility in the stock market and economic uncertainty sparked by the ever-changing tariff landscape has made some affluent renters and even some buyers hold off on a pricey Hamptons vacation this summer.
After the post-election euphoria in markets at the end of last year, brokers saw a surge in interest from potential renters in January and February. But as spring arrived, along with the April tariff announcements, the early interest didn't translate into rentals.
Morabito said he represents several homeowners with large waterfront and luxury properties that typically would have been rented by March or April. Today, they're still available. He said some homeowners who rent out three or four homes in the Hamptons during the summer may start to question their investments after this summer if renters don't start emerging.
On the plus side, the rise in unrented inventory means potential bargains and choice for renters. Brokers say some listings have started lowering their prices by 10% to 20% in hopes of saving the summer. Some homeowners are adding more flexibility, allowing for shorter one- or two weeks stays in hopes of getting renters.
Gary DePersia of My Hampton Homes said the best houses in the Hamptons typically get rented early in the year. 'But this year I have great rentals available in every town, from Southampton to Montauk.'
While tariffs and economic uncertainty may play a role in the slump, he said renters seem to have been waiting longer and longer every year, perhaps holding out for better deals. Eventually, he said, they end up renting.
'I think a number of people have deferred decisions, or they weren't sure what [they were] going to do, go to Europe or the West Coast,' he said. 'They will realize they want to be in the Hamptons; they have lot of friends and colleagues here and then they start scurrying around for rentals.'
Desiderio said the combination of weather and grim economic headlines made for a slow start that will quickly reverse.
'I believe this year there was so much 'dark noise' out there financially, and geopolitically, and the weather was not conducive to thinking of summertime,' she said. 'There's no doubt that by the time July 1 is upon us, all of the rentals will be taken this year.'
When it comes to home sales, the Hamptons real estate market remains fairly strong, despite relatively low inventory. Sales in the first quarter were down 12% from a year ago, although the median sales price jumped 13% to a record $2 million.
Brokers say when a quality home in the Hamptons is priced right, it sells immediately. They add that the surge in high-end sales in Manhattan over the past two months could also lift the Hamptons market.
'I just had two Canadians put a bid on an $18 million house, sight unseen' Morabito said. 'When Manhattan comes alive, we always follow.'
This 11,000 square-foot home in Bridgehampton in the Hamptons has slashed its rental price from $450,000 to $375,000 for August through Labor Day.Credit: Courtesy of Corcoran.