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Demand for summer rentals in the Hamptons is down significantly this year as seasonal renters confront the reality of an uncertain economy.
Overall, rental demand is down about 30 percent from the same period in previous years, Judi Desiderio of William Raveis Real Estate told CNBC. Demand is down even further for ultra-luxury properties, according to Hamptons brokers, who say business is down between 50 percent to 75 percent from what is typical for this time of year.
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“People are holding onto their money,” Enzo Morabito of the Enzo Morabito Team at Douglas Elliman told the news outlet. “They don’t like uncertainty.”
It’s possible that some would-be summer vacationers have also been deterred by gloomy, cold weather in May and are holding out as long as possible to see if forecasts turn around in July or August, brokers said, or are hoping that discounts may pop up later in the season.
But sustained economic uncertainty, largely set off by quickly changing tariff policies and ensuing stock market volatility, is likely one of the biggest factors causing luxury renters and even some buyers to hesitate putting their money into real estate right now, brokers said. The hesitation is a far cry from the relative enthusiasm shown by renters after the 2024 presidential election, as markets responded favorably to the outcome. But since April and the announced tariffs, that early interest has failed to materialize in the form of booked rentals.
Multiple waterfront and other luxury properties that Morabito typically represents as summer rentals remain available for the summer, even though they’re usually booked by March or April, the broker said.
More vacant rentals at this point in the season may turn into deals for renters, however. Already, some luxury rentals have seen price cuts of 10 percent to 20 percent, according to local agents. Some homeowners are also allowing for shorter rental periods than they might have otherwise, including one- or two-week stays.
“I believe this year there was so much ‘dark noise’ out there financially, and geopolitically, and the weather was not conducive to thinking of summertime,” Desiderio told CNBC. “There’s no doubt that by the time July 1 is upon us, all of the rentals will be taken this year.”
Hamptons home sales were also down year over year in the first quarter, though not as dramatically compared to the vacation rental market. Sales were down about 12 percent year over year in Q1 2025, while the median sale price rose 13 percent to $2 million.
The Hamptons market tends to follow Manhattan trends, brokers said, which means a recent two-month boost in luxury sales in the city may be good news for the luxury beach market.
“I just had two Canadians put a bid on an $18 million house, sight unseen,” Morabito confirmed to CNBC. “When Manhattan comes alive, we always follow.”
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