2022 – Stylish Hamptons homeowners cut summer rental rates by up to 30%

CNBC reports that some owners have slashed rental rates by 30% this summer in the Hamptons.

  • During the pandemic, buyers flocked to the Hamptons, driving up home prices in the holiday hotspot.
  • New homeowners are trying to make money by charging fees for summer rents—up to $1 million a month.
  • But demand has waned, with some owners cutting rents by as much as 30%, CNBC reported.

During the pandemic, buyers flocked to the Hamptons, driving up housing prices in the popular vacation spot.

To recoup their costs – and even make a profit – homeowners have listed their gorgeous villas for astronomical rent over the past two summers. (Case in point: an oceanfront mansion purchased for more than $16 million last year is now listed for July for $1.65 million.)

But CNBC has found that a market glut after years of buying — and waning demand as summer travelers head abroad two years into the pandemic — could mean Hamptons prices are back on the ground this summer.

CNBC’s Robert Frank reports that some homeowners in the Hamptons are lowering their rental rates by “30% or more” to attract tenants to their properties.

Douglas Elleman’s broker, Enzo Morabito, told CNBC that there is a “massive amount of inventory and people aren’t renting it.” CNBC said another realtor said average rents in the Hamptons fell 26% in the first quarter.

According to CNBC, the slump in Hamptons rental prices that some landlords have experienced is caused by two distinct factors.

For example, a falling stock market, rising inflation and general economic uncertainty could dampen demand for a haven in the Hamptons, which has long been home to Wall Streeters looking to escape from New York City during Memorial Day over the Labor Day summer holidays.

The resurgence of overseas travel after the sudden rise in domestic travel due to the pandemic could also mean that fewer renters want to stay close to their homes for a good time in the summer.

In May of this year, Insider reported that Airbnb hosts in the US are facing similar challenges as demand for short-term rentals slows after two years of pandemic-driven growth. Airbnb owners Dan Latu and Daniel Geiger of Insider said high inflation, increased global travel, and a growing number of hosts and listings are all contributing to the slowdown in bookings.

CNBC also reported that the past two years of frenzied home buying in the Hamptons likely meant that potential tenants in previous years were now homeowners.

Buyers have withdrawn from the rental market, Morabito told CNBC’s Douglas Elleman.

Of course, there is still a home for expensive rental apartments in the Hamptons. According to CNBC, another beachfront Bridgehampton home just down the street from the $1.65 million July-listed property is back on the market this summer — with a monthly price of $1.25 million.

Read the original article on Business Insider

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