Rented a house in the Hamptons for $ 2 million for the summer as demand far exceeds record-high supply of homes for sale and rent, agents said.
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. The average selling price, which has increased 31% to $ 1.3 million, is now 20% higher than the average selling price in Manhattan.
“I’ve never seen the Hamptons market like this – ever,” said Gary DePersia, a top broker in the Hamptons for over 25 years. ‘As soon as a building is offered for rent or sale, it is immediately snatched away.’
While markets across the country are seeing a shortage of homes for sale, supply is especially tight in these exclusive New York beach communities. Families who fled to the Hamptons during the early days of the Covid pandemic continue to survive, preferring to commute to New York only when needed. The stock market boom and the rise in asset prices have sparked a wealth explosion that even Hamptons brokers say is unprecedented. And the lack of building supplies and land made it impossible for builders to keep up with demand.
A 42-acre estate in Southampton has just been contracted for more than $ 100 million, brokers said, representing the most expensive deal in years for the Hamptons. In East Hampton, there are four recent deals worth more than $ 50 million, DePersia said.
According to Douglas Elliman and Miller Samuel, first-quarter sales in the Hamptons were the strongest in six years, suggesting that the market is showing little sign of cooling.
On the rental side, real estate agents said the shortage of owner-occupied homes has also led to a shortage of rental properties. Homeowners who usually rent out their home for the summer are now selling – or deciding not to rent at all, as travel to Europe and other luxury destinations is still limited by Covid.
The rent shortage has led to rising prices, with little room for negotiation, brokers said.
DePersia said a house in Sagaponack rented for $ 90,000 last July, and for $ 225,000 in July. At the “bottom”, homes that used to rent for $ 35,000 are now going $ 60,000.
He said he has a long list of clients looking to rent luxury homes for between $ 400,000 and $ 600,000 for the season, but they simply aren’t.
“I wish I had ten,” he said. “I could hire them all.”
Rentals are taken almost as soon as an ad is posted. Realtor Rima Mardoyan said some wealthy clients fly in by helicopter or jet to see a property on the same day it’s listed – only to see it’s rented out by the time they arrive.
‘I tell people you can’t wait to make up your mind. You have to do it right away, ”she said.
Mardoyan and other real estate agents said at least one home in the Hamptons had been rented for $ 2 million for the summer, although the deal was done discreetly without an 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 real estate agent, said he recently made an offer on behalf of a client to rent an oceanfront home for $ 2 million for the summer. He was rejected.
“I offered him $ 2 million and the owner said no,” said Grant. ‘Could you imagine? It’s a different world now. ‘
Some homeowners have started overshooting prices, realtors said, charging $ 500,000 for a mediocre home far from the water or with an old interior. Still, Mardoyan said she wouldn’t be surprised if the bidding wars now common for sale in the Hamptons spread to rental properties, with tenants vying to offer more than the asking price.
“It hasn’t happened yet,” she said. “But I think that’s the next phase. People want to be here and they have the money.”