Renters have filled beach towns in the New York City area since March, when Covid-19 was declared a pandemic. Now with a good number of parents opting for remote learning for their kids and companies still allowing employees to work from home, many have decided to stay in their vacation spots.
“We are full out here,” said Michaela Keszler, a Douglas Elliman agent based in the Hamptons on Long Island. “People are trying to extend leases through the winter.”
Rentals are also being extended on the Jersey Shore, according to Denise Dreyer with Ward Wight Sotheby’s International Realty.
“A lot of clients have come out of the city and have rented places long term, through the winter,” she said, adding that many have leases through June 2021.
Connecticut, especially Fairfield County, has also seen an influx from the city, according to Candace Adams , CEO and president of Berkshire Hathaway HomeServices New England Properties.
“Rentals over $5,000 a month have increased by over 100% year over year,” she said. Families are renting large single-family homes so they have more space and outdoor amenities, but still want to be able to get into Manhattan easily.
“The further north you go, you’re less likely to get a commuting New Yorker to commit longer term,” she noted.
The increased demand has translated into limited supply in these locations that used to be primarily summer spots, according to agents.
In the Hamptons, Ms. Keszler said she’s getting inquiries daily, but inventory is tight. And it’s been that way since long before the summer started.
“Rentals started much earlier this year,” she explained. “The last few years, we’ve seen shorter rentals—a month here, a month there. This year, people wanted the full season and they came in March.”
Most properties are already occupied, either by renters who got in early or the owners of the home who are waiting out the virus in their homes. In addition, some owners don’t want to rent in the winter, when wear and tear on the property can be more intense, Ms. Keszler explained.
On the other hand, they may choose to rent because they can get “more money than ever before,” she noted.
Douglas Elliman is currently offering a five-bedroom, five-bathroom home in Water Mill in Southampton for $240,000 a year. For those looking for a shorter-term situation, the rest of September is available for $40,000, October for $30,000 and November and December for $20,000 each.
Ms. Keszler said that the gap between on- and off-season pricing is closing, and people are getting more for winter rentals than ever before.
But that’s not the case on the Jersey Shore. A prime summer rental might fetch $60,000 a month, but the same property would be more like $5,000 in the off season, according to Ms. Dreyer .
Being within a fairly easy commute to New York is crucial, she noted. Some parents are able to work fully remotely, but that could change this fall. Others are already going in a few days a week.
“If [one parent] has to go into the office a few days a week, then it’s still manageable from commuting from the Jersey Shore,” she explained.
But because so many people are still logging in to work virtually, it’s the large homes with plenty of room for offices that are the most in demand, Ms. Dreyer added.
That’s the case in Connecticut, too, according to Ms. Adams .
“A good rental will come on and go off instantly within 24 hours, and we’ll have multiple offers,” she said. That means a home with a lot of rooms with doors that can be closed, Ms. Adams added, as well as acreage, pools and outdoor kitchens.
The School Situation
One of the biggest uncertainties for families is what to do about schools. New York City has delayed the in-person opening of public schools until Sept. 21, and many private institutions are also still figuring out a balance between virtual and in-person learning.
In the Hamptons, families are connecting to create school pods, Ms. Keszler said. In these pods, counselors can oversee students during virtual classes, as well as organize group activities.
In New Jersey, some parents have decided to put their children into local schools, even while still renting, according to Ms. Dreyer.
Other families are also splitting up for the time being, Ms. Dreyer noted. Older children and parents who may be going into the office part time are returning to the city, while younger children and the other parent are staying at the beach. On weekends, they meet up again on the Jersey Shore.
Connecticut schools will also see students from New York City in classes this year, Ms. Adams noted. Although many of her clients still hope to go back to the city, she said they are waiting out a vaccine in the suburbs.
Also, renters who came up in the spring are now moving to longer-term rentals, she said. And she’s seeing some clients make offers on homes they’ve been renting for months.
“I'll call it a ‘mini trend,’” she explained. “Of those people renting, some are turning around and buying the properties they were renting. The tenants are saying, ‘we really like it, we want to buy it.’ And they're buying it.”