To paraphrase Mark Twain, reports of the demise of the Hamptons summer-rental market are greatly exaggerated.
“Any hint that the Hamptons rental market is anything but robust is completely wrong,” said Corcoran associate broker Gary DePersia of My Hampton Homes in East Hampton.
An interesting dynamic is stirring in the Hamptons vacation-rental market. Although there has been an unprecedented rise in short-term rentals and the aftershocks of the COVID-19 pandemic linger, it has been a bumper crop year for Wall Street, interest rates have remained steady and a new breed of demanding customer is emerging. Despite it all, the Hamptons vacation-rental market remains as robust and competitive as ever.
Short-term rentals, officially under 30 days but often much less, appeal to those seeking more personalized, condensed and flexible travel experiences. The rise of remote work has changed the demand paradigm as well with properties catering to the needs of digital nomads, most notably by providing high-speed internet so guests can remain connected while being away, combining business with pleasure in a sort of working-vacation — talk about a contradiction.
“Year-over-year, our numbers have been very steady,” Sarah Minardi, a broker at Saunders & Associates in East Hampton, said.
“There are always numerous factors in play, but people want to be here,” she said when asked about rental-market turbulence. “It all depends on the person and their needs.”
But does anyone actually “need” a tennis court, swimming pool or temperature-controlled wine chiller to have a good vacation? Some renters absolutely do, and they will insist on such amenities.
“When a renting prospect says they want value for their money, that means amenities like a heated pool, sauna, a desirable location near a beach or village, at least three bedrooms and high-speed internet so they can remain connected,” Corcoran agent Jackie Dunphy in East Hampton said. “This is something of a recent phenomenon.”
A Discerning Customer
In a legendary vacation market like the Hamptons, discerning customers routinely anticipate that their expectations will be exceeded. This can present challenges to those who make a living serving them, but the best solution is often providing an unforgettable vacation experience. This can be easier said than done as we’re clearly not dealing with the no-frills crowd.
“Each renter has their own idea of what their vacation experience should be. There are all sorts of things a renter may want,” DePersia said. “Some are location focused. Are they near friends? Kids activities? A gym? What about privacy? Others want a pickleball court or a deck with a view. Some want three bedrooms and others need 10. There is not an infinite amount of houses here, and some do not measure up to the customers’ expectations.”
While rental revenue is anticipated to remain steady to prior years, according to the agents interviewed here, the market may remain highly competitive. Most agree that staying attuned to pricing trends and guest demand will be the keys to maximizing rentals. Similarly, economic uncertainty may impact vacationers’ spending habits and decision making. Understanding the value of one’s property against customer demands and competition can provide a more realistic, forward-looking assessment of the rental season.
“We’re seeing a demographic change in the clients and a technological disruption,” associate broker Matt Breitenbach of Compass in Southampton said. “App-based companies are trying to get short-term rental inventory. This is a mental shift. At the same time, we’re also seeing the Hamptons change from resort town to country town. This is having an impact on the type of client we’re attracting and the type of properties being rented. We each have to adjust on all sides of the equation, including property owners seeking summer tenants. What was once a slam dunk may not be such an easy sell as new properties enter the market, and the value of location plays a role.”
While it’s hard to imagine a Hamptons home being described as less desirable or substandard, Breitenbach noted newer homes with open floor designs and modern touches can have an advantage to the discriminating renter. “Property owners with older homes in what may have become less-desirable areas may have to adjust as newer construction gets absorbed into the market,” he said.
Newly constructed homes tend to command higher prices than existing ones. In addition to open-floor plans and newer appliances, design elements of the 1950s and 1970s are returning to kitchens according to the 2025 Kitchen Trends Report at the expense of all-white and all-gray kitchens. But if the client is after location, a well-kept older home will continue to command a handsome rent.
“It all depends on what works for people,” Minardi said.
Decision Deferral
It’s likely that steady income gains and increasing economic stability will support continued improvement for the balance of 2025, ideally stabilizing in 2026. While tariff uncertainty remains, the economy has absorbed relatively higher interest rates, however, it’s impossible to say if and when rates may change, adding to spending anxiety.
“It was once standard for most vacationers to secure their rentals the previous fall or early winter for the following season,” DePersia pointed out. “Economic and political uncertainty made many postpone making vacation plans.”
Dunphy agrees. “There have been times when Father’s Day weekend turned out to be the tipping point,” she said. “Bad weather can discourage people, and tariff confusion has discouraged some. As we get closer to the summer season, some prices can become negotiable.”
“It’s very difficult to determine the true state of the rental market,” Breitenbach said. “Sales transactions become public record, but it’s impossible to track rental data. There are too many variables. The data is incomplete.”
When it comes to short stays, another relatively new real estate phenomenon, growth is expected to slightly decline from 2024 levels, according to research from AirDNA, a data and analytics provider for the short-term rental industry. Supply growth is projected to decelerate further in 2025 before stabilizing in 2026, reflecting the ongoing effects of high interest rates and elevated housing prices.
Or as DePersia says: “When we get past Labor Day and run the numbers, we’ll see that this season has been very similar to others.”
