The rich aren’t biting this year — sparking concerns about the state of the economy.
The super-wealthy, who flock to the Hamptons every summer to live in the lap of luxury, aren’t spending tens of thousands per month to do so anymore.
A rental crisis has hit the Eastern end of Long Island, as mansion rentals are down 30 percent this year, according to CNBC.
And the luxury rental market that is usually booked every summer doesn’t show any signs of improving.
New York City residents — who make up the majority of Hamptonites — will likely miss their infinity pools, tennis courts, and ocean views.
For ultra high-end rentals, brokers say their business is down between 50 percent and 75 percent.
While some people may simply be holding out for better deals, brokers say renters are concerned about economic instability.
‘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.’
The Hamptons rental market has slowed due to economic jitters
The Hamptons has long been a popular summer vacation spot for many New Yorkers thanks to its beautiful beaches
For example, one palatial seven-bedroom estate in Bridgehampton, which normally rents for $350,000 from July 20 through Labor Day, is still sitting empty, CNBC reported.
Another 11,000-square-foot mansion in Bridgehampton has slashed its summer price tag from $450,000 to $375,000 in a desperate bid to lure renters.
Experts say some would-be renters are simply holding out for last-minute bargains or have been turned off by the late season frost in the area.
But brokers warn there’s deeper trouble.
Economic jitters, a turbulent stock market, and Donald Trump’s tariffs are forcing wallets shut.
The crisis marks a sharp reversal from January and February, when rental inquiries were flying in.
But by spring — and with the arrival of tariff chaos — it was nothing but crickets.
Luxury broker Gary DePersia of My Hampton Homes says what he’s seeing is unprecedented, and that usually, the best homes go early.
Manhattanites boast about taking day trips courtesy of Jitney shuttle rides
The super-wealthy who flock to the Hamptons every summer to live in the lap of luxury aren’t spending tens of thousands per month to do so anymore
For ultra high-end rentals, business is down between 50 percent and 75 percent
The crisis marks a reversal from January and February, when rental inquiries were flying in
Popular spots such as Surf Lodge in Montauk are normally overcrowded in the summer
‘This year, I have great rentals available in every town, from Southampton to Montauk,’ he says.
Some nervous landlords have started slashing prices by up to 20 percent.
They’re also offering concessions like shorter stays instead of full-summer commitments.
Morabito warns that homeowners who rely on summer rentals in order to pay a year’s long mortgage may now be rethinking their investments.
He represents several homeowners with large waterfront properties that typically would have been rented by March or April, but that are still available.
Despite the bad news, some brokers remain optimistic.
Judi Desiderio of William Raveis Real Estate believes the combination of ‘dark noise’ out there financially and geopolitically, along with bad weather, was not good.
But she thinks that last minute takers will show up and predicts everything will be gone by July 1.
Economic jitters, a turbulent stock market, and Donald Trump’s tariffs are forcing wallets shut
A rental crisis has hit the Eastern end of Long Island, as mansion rentals are down 30 percent
Homeowners often rely on summer rentals in order to pay a year’s long mortgage
The rich and famous, like Christie Brinkley (pictured above), flock to Hamptons hot spots like Surf Lodge starting on Memorial Day weekend
Meanwhile, the sales market in the Hamptons is also down by 12 percent. But, sales are still happening, despite the median home price hitting $2 million, a new record.
One broker is closing on a big deal.
‘I just had two Canadians put in a bid on an $18 million house — sight unseen,’ Morabito said.
Still, the rentals sit.
‘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,’ DePersia said.
Famous residents of the Hamptons are heading to far more exclusive locales this year, too.
Many celebrities and the super rich are instead making their way overseas.
Jeff Lichtenstein, broker and CEO at Echo Fine Properties in Jupiter, Florida, told the Daily Mail that ‘the uber-wealthy are changing it up this year,’ adding that he’s hearing about more people buying vacation residences in Portugal and heading to Spain on glamorous trips.
These moneyed folks are visiting ‘anywhere from Lagos to Carvoeiro overlooking the cliffs on the Atlantic to ultra new golf course communities within minutes of the Faro airport,’ Lichtenstein said.
