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. As many more homeowners entered the rental market, particularly since the COVID-19 pandemic, competition for rental properties has increased. What does the rental market in the Hamptons look like in 2023? Can owners still expect to be able to rent out their houses or are properties being left unrented? Has the profile of the “typical” summer renter changed?
Joseph Van Asco
DOUGLAS ELLIMAN
MONTAUK
“This is a competitive year for over-priced rentals, but well-priced properties are doing just fine. I’ve been very busy and have done almost as many rentals this summer as last summer. It’s mid-July and I’m still doing a ton of August rentals. I’m seeing the same audiences and working with the same clients from previous years. The only thing that has changed is some renters who previously booked the whole summer are only staying three weeks because they’re vacationing in Europe or have other family plans. While some properties are still available, everything is rentable — it’s just a matter of pricing, marketing, and making sure that you are running your rental business correctly. Renting your home is a business. You need to keep furniture and decor updated and on-trend and owners need to be flexible on pricing and dates.”
JB DosSantos
BROWN HARRIS STEVENS
EAST HAMPTON
“What I have experienced in the last few years in the Hamptons rental market is that there has been a shift in the overall type of tenants. The new tenants I have dealt with are primarily in the very high end of the rental market. As it has been in the past, they trust their seasoned realtor to secure their summer rental and often it is “sight unseen.” Still, those high-end rentals are coming in with about a 20% discount compared to recent years, when the COVID-inspired surge of renters and buyers drove prices up. The lower end is a little sluggish because many renters have been priced out of the Hamptons. With travel reopened after the pandemic, Europe has been attracting a lot of vacationers who had been coming to the Hamptons in recent years. Will properties be left unrented? Yes, especially with more oversight from local, regional, and state governments restricting short-term rentals, particularly through vacation rental websites. Bottom line, the high-end rental market is a healthy one because many buyers can’t find what they would like to buy due to unusually low inventory. Therefore, they are renting instead.”
Anthony Rosina
SOTHEBY’S INTERNATIONAL REALTY
BRIDGEHAMPTON
“For the second year in a row, demand for rental homes in the Hamptons appears to be retreating to pre-pandemic levels. Four disparate elements have conflated simultaneously, causing a near-perfect storm for would-be landlords here on the East End. First, many of the tenants who rushed out of the city at the start of COVID became buyers shortly thereafter, thus reducing the pool of usual renters. These new owners then put their homes up for rent, greatly increasing the amount of available inventory. Couple this with lower Wall Street bonuses and a desire by many to return to summering in Europe and we are left with a major surplus of homes stretching from Westhampton to Montauk. But ample opportunities still exist. Many landlords are adjusting to the changing climate by reducing rates and becoming more flexible. Some are offering to pay for a variety of operating expenses, like electricity, lawn maintenance and pool heating, while others are including the use of their personal boat or Jeep. Resiliency and elasticity appear to be the buzzwords for landlords this year, and will most likely need to prevail in 2024 and beyond.”
J.B. Andreassi
NEST SEEKERS INTERNATIONAL
SOUTHAMPTON
“The surge in home purchases since 2020 has really affected the rental market overall. As we all know, one of the main reasons why so many buyers choose the Hamptons, is the notion that they will be able to rent their home out during the summer months to make up for some of the year-round costs to maintain the property, plus the ability to pay off property taxes and their mortgage commitments. Since there have been so many purchases over the last two-three years, the rental market has been flooded with new rental inventory. The surplus of inventory, the reopening of Euro travel and non-favorable economic factors have no doubt hurt the rental market overall this year. Owners are not seeing the numbers they had become accustomed to over the last few summers. Specific places like East Hampton Northwest and Water Mill North have been hit particularly hard. With that being said, this season, the recently updated or newer homes in locations closer to Main streets and beaches had no problem renting, and for the appropriate numbers they deserve.”
Randi Ball
THE CORCORAN GROUP
EAST HAMPTON
“The summer rental market has been a big part of my business since the day I started my career at Corcoran. I’ve worked hard to serve both landlords and tenants throughout the years, and as a result, I have been lucky to build very strong relationships. It is no news that the rental market for the 2023 summer season is less intense when compared to recent years, and several homes that I usually rent early in the year are still available. The lack of urgency among tenants has resulted in last-minute leases, very specific date requests, and price shopping. The landlords who took my advice along the way as I watched the market closely did successfully rent. I advised them to be flexible with dates and pricing. Managing expectations is a big part of an agent’s responsibility. However, the season is certainly not over. Our region is buzzing and there is still an excellent chance of renting for the remainder of the summer. The big question remains as to why this season is different from the past few. Time will tell if the rental market needed a correction after the flurry of COVID activity or if pent-up demand for international travel changed the playing field – at least in the near term. Personally, the desire to buy versus rent has been the biggest factor I have come across for my customer base changing their renting patterns this season.”
Yorgos Tsibiridis
COMPASS
EAST HAMPTON
The 2023 Hamptons rental market has been transitioning back to normal. The high demand of the last two years impacted by COVID and international travel restrictions has leveled off. Now, we are experiencing more of a balanced market. Even so, there are some notable highlights. The high-end rental market has been very strong, with luxury properties in prime locations renting early on in the season and at premium prices. The market has been the most challenging in the lower and mid-price categories, where supply has increased and listing prices have yet to come down to adjust to pre-COVID levels. Still, properties are renting this summer and have seen a steady deal flow compared to last year. In contrast to the rental market, the sales market is still a seller’s market with a very tight inventory and strong demand for unique properties.
This article appeared in the issue of July 21, 2023. To read the full digital version of the magazine, click here. For more articles from our various magazines, click here.
