The summer rental market has always played an important role in Hamptons real estate and the opportunity to generate income by renting out your home for all or part of the season has made home ownership here more accessible to many. But, what is it like on the rest of Long Island? Overall how has the rental market been in western Suffolk and Nassau counties since the end of the COVID-19 pandemic?
BRANCH REAL ESTATE GROUP
As interest rates have continued to climb since the end of the COVID-19 pandemic, so has the demand and pricing for rentals across Long Island. This situation has increased the opportunity for homeowners to earn rental income on their property, especially given the limited available inventory. In addition, while market conditions have put homeowners in a position to steadily increase their rental rates, landlords should be careful not to overprice in order to avoid turnover delays. This includes rentals of all sizes: apartments, townhouses, and single family homes. Rental properties have become so lucrative that some homeowners who were contemplating leaving their properties vacant for several months, are now jumping on the bandwagon and listing their property for rent to capitalize on this opportunity. With this increase in demand, we are seeing bidding wars in the rental space, similar to what we are experiencing with home sales. As a result, homeowners often have multiple, well-qualified rental offers, creating a race to the finish line with the application process.
Post-COVID-19, western Suffolk and Nassau counties have become attractive destinations for homeowners and investors seeking rental prospects. The rental market in these areas has made a strong comeback since the pandemic’s conclusion, offering a promising choice for those looking to capitalize on reliable and steady income streams. The demand for large suburban homes increased during the pandemic, and with limitations easing, there has been a noticeable shift towards year-round rentals, making it an appealing opportunity for potential tenants. The appeal of western Suffolk and Nassau counties as a rental refuge has been further reinforced by their proximity to New York City and excellent transit facilities. Real estate brokers can take advantage of this ideal opportunity by highlighting the area’s wealth of amenities, such as top-rated schools, beautiful parks, and easy access to breathtaking beaches. By providing homeowners with persuasive information on the potential for a sizable return on investment, agents can help them make wise choices about renting out their properties. With the rental market in western Suffolk and Nassau counties experiencing a significant uptick since the COVID-19 outbreak, homeowners now have the chance to maximize the value of their homes, turning Long Island into an accessible and lucrative investment opportunity for everyone. Understanding and supporting these trends can assist customers in optimizing their income and enhancing their experience as homeowners.
FIRE ISLAND SALES & RENTALS
Since COVID-19, the rental market on Fire Island has been positively affected. The pandemic brought a whole new wave of clients that had never been to Fire Island before, and once they experienced the car-free, care-free lifestyle here, many were hooked. With the continued elevated levels of demand, homeowners and investors are really stepping up their game when it comes to adding amenities to their homes. The rental market has never been stronger. We see people rebooking for their summer rental as soon as they leave, and new clients looking already for the summer of 2024.
Seasonal rentals are extra competitive because there are limited opportunities that fit the needs of short-term audiences. The demand for these homes is exceeding supply and driving prices to levels I’ve never seen before. And the same holds true for traditional full-year, single-family home rentals because would-be buyers are getting pushed into the rental market due to lack of supply. Thankfully, multi-family development is bringing some relief to the market, with amazing new inventory being built across the island, east and west, north and south. But don’t expect to get a deal: prices are high across the board, especially with investors purchasing new construction condos to rent out.
Summer or seasonal/short-term rentals on the rest of Long Island are still few and
far between. Being dually licensed on the North Fork and in Huntington has given me insight into both a primary and secondary home market. In western Suffolk, landlords tend to prefer 1-year leases and are not equipped for the work that comes with a shorter rental period. I know places with popular downtowns like Huntington or Patchogue do have more Airbnb or short-term rentals after COVID-19 but these are based around areas with theaters or nightlife. The North Fork, similar to the Hamptons does have a lack of year-round affordable rentals but perhaps landlords will and should start to consider a year-round tenant if they are unable to rent short term. I am looking forward to the availability of some unique short-term rentals on the North Fork this fall, giving people access to vineyards, pumpkins and all the charm fall harvest has to offer.
This article appeared in the August 2023 issue of Behind The Hedges Powered By the Long Island Press. Read the full digital edition here. For more on greater Long Island real estate click here. Be sure to check out more Real Estate Roundtables.