A home in the Hamptons has been rented for $ 2 million for the summer as demand far exceeds a record low in homes for sale and rent, according to realtors.
According to a report by Douglas Elliman and Miller Samuel, the number of homes for sale in the Hamptons fell 41% in the first quarter, marking its fastest decline in history. The median selling price, which rose 31% to $ 1.3 million, is now 20% above the median selling price in Manhattan.
“I’ve never seen the Hamptons market like this,” said Gary DePersia, a top broker in the Hamptons for over 25 years. “As soon as a property is offered for rent or for sale, it is snapped up immediately.”
While there is a shortage of homes for sale in markets across the country, supply is particularly scarce in these upscale New York beach communities. Families who fled to the Hamptons in the early days of the Covid pandemic are staying there, preferring to commute to New York only when needed. The stock market boom and the rise in asset prices have resulted in a wealth explosion that even Hamptons brokers consider unprecedented. And the lack of building materials and land has prevented builders from keeping up with demand.
A 42-acre property in Southampton has just been signed for more than $ 100 million, brokers said, marking the most expensive deal for the Hamptons in years. There were four $ 50 million deals recently in East Hampton, DePersia said.
Douglas Elliman and Miller Samuel said first quarter sales in the Hamptons were its strongest in six years, suggesting the market is showing little sign of cooling.
On the rental side, realtors said the shortage of homes for sale has also resulted in a shortage of rental properties. Homeowners who used to rent their homes for the summer are now selling – or choosing not to rent at all, as travel to Europe and other high-end destinations is still limited by Covid.
The lack of rent has led to rising prices, with little room for maneuver, brokers said.
DePersia said a Sagaponack home that rented for $ 90,000 last July rented for $ 225,000 this July. On the “lower” end, homes that used to rent for $ 35,000 are now $ 60,000.
He said he has a long list of clients looking to rent high-end homes for $ 400,000 to $ 600,000 for the season, but there simply aren’t any.
“I wish I had 10 of these,” he said. “I could rent them all.”
Rentals are almost taken as soon as a listing is published. Realtor Rima Mardoyan said some wealthy clients fly in by helicopter or jet to see a property the same day it’s listed – only to find it when they arrive.
“I tell people you can’t wait to make up your mind. You have to take it right now,” she said.
Mardoyan and other brokers said at least one home in the Hamptons was rented for $ 2 million for the summer, despite the fact that the deal was closed discreetly with no official listing.
“This is a whole new level of wealth that we are seeing now, even for the Hamptons,” she said.
Harald Grant, a longtime Hamptons realtor, said he recently made an offer on behalf of a client to rent an oceanfront home for the summer for $ 2 million. He was rejected.
“I offered him $ 2 million and the owner said no,” Grant said. “Can you imagine? It’s a different world now.”
Some homeowners have started to beat prices, brokers said, asking for $ 500,000 for a mid-size home away from the water or with old interiors. Still, Mardoyan said she wouldn’t be surprised if the bidding wars that are common for sales in the Hamptons today spread to rentals, with tenants competing for more than the asking price.
“It hasn’t happened yet,” she said. “But I think this is the next phase. People want to be here and they have the money.”