A Hamptons home rented for $ 2 million for the summer because demand far exceeds a record low supply of homes for sale and rent, according to brokers.
The number of homes listed for sale in the Hamptons fell 41 percent in the first quarter, marking the fastest decline, according to a report by Douglas Elliman and Miller Samuel. The average selling price, which rose 31% to $ 1.3 million, is now 20% higher than the average selling price in Manhattan.
“I’ve never seen the Hamptons market like that – never,” said Gary DePersia, a top Hamptons broker for over 25 years. “As soon as a property is listed for rent or sale, it is immediately foreclosed on.”
While markets across the country are experiencing a shortage of homes for sale, supply is particularly limited in these exclusive New York communities. Families who fled to the Hamptons in the early days of the Covid pandemic remain, preferring to commute to New York only as needed. The stock market boom and rising asset prices have led to an explosion of wealth that even Hamptons brokers say is unprecedented. And the lack of construction and land assets has prevented builders from keeping up with demand.
A 42-acre Southampton property has just entered into a contract for more than $ 100 million, brokers said, marking the most expensive transaction in recent years for the Hamptons. In East Hampton, there have been four recent transactions for more than $ 50 million, DePersia said.
Hamptons first-quarter sales were the strongest in six years, according to Douglas Elliman and Miller Samuel, suggesting the market shows little signs of cooling.
Regarding the rent, the brokers said that the lack of houses for sale also led to a lack of rents. Landlords who used to rent their homes for the summer are now selling – or deciding not to rent at all, as travel to Europe and other state-of-the-art destinations is still limited by Covid.
The lack of rent has led to higher prices, with little room for negotiation, brokers said.
DePersia said a house in Sagaponack that was rented for $ 90,000 last July was rented for $ 225,000 in July. At the “lower” end, the houses that used to rent for $ 35,000 now stand at $ 60,000.
He said he has a long list of clients who want to rent luxury homes for between $ 400,000 and $ 600,000 per season, but are simply not available.
“I wish I had 10 of them,” he said. “I could rent them all.”
Rentals are taken almost as soon as a list is published. Broker Rima Mardoyan said some wealthy customers fly by helicopter or plane to see a property on the same day it is listed – only to find it rented on arrival.
“I’m telling people, you can’t wait to decide. You have to take it right away,” she said.
Mardoyan and other brokers said at least one Hamptons home was 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 see now, even for the Hamptons,” she said.
Harald Grant, a longtime broker in the Hamptons, said he recently made an offer on behalf of a client to rent a $ 2 million oceanfront home for the summer. 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 begun to outdo prices, brokers said, asking $ 500,000 for a medium-sized home away from the water or with old interiors. However, Mardoyan said she would not be surprised if the usual bidding wars now for Hamptons sales begin to expand into rents, with tenants competing to offer 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 have the money.”