HAMPTONS RENTAL MARKET REPORT 2021 - STAYMARQUIS
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Hamptons
Rental Market www.staymarquis.com
owners@staymarquis.com
Report 2021 631 – 301 – 2960Season Recap
Reflecting continued momentum from 2020, booking activity in 2021 kicked off extremely
early in the year.
Gross Booking Value for bookings with check-ins between Memorial Day and Labor Day (peak
season) that were made in the first quarter of 2021 were 3.0x above 2020 levels and 1.5x above 2019
levels, demonstrating renters’ desire to lock in summer plans earlier than years prior. New owners
who had originally purchased properties for their own COVID safe havens only added additional
inventory to the market. As these owners returned to their primary residences, they subsequently
marketed their properties for rent, opening peak season availability earlier than owners traditionally
have. This early availability aided to facilitate high booking activity in Q1 of this year.
Online Bookings in the Hamptons Made in Q1 2021 for MDW-LDW
7,000 $50M
$47M
Gross Booking Value ($M)
6,000
$33M $40M
5,000
# of Bookings
4,000 $30M
$16M
3,000
6,251 $20M
5,253
2,000
2,661 $10M
1,000
- $0M
2019 2020 2021
# of Bookings Gross Booking Value
Optimism around an expeditious rollout of vaccinations combined with the reopening of restaurants
and businesses offered a renewed sense of normalcy just in time for summer. This sense of hope
only supplemented the steadfast booking activity showcased in Q1. As spring headed into the
summer, booking activity seemingly then cooled off due to a few factors including: depleted
supply, increased rental rates, and eased international travel restrictions which would allow
potential renters to travel overseas for the first time in 18 months.
I 2 I www.staymarquis.com HAMPTONS RENTAL MARKET REPORT 2021Timeline of 2021 Booking Activity
School closure announcements
(ultimately extended)
7,000
Vaccinations become available
across adult age range
6,000
Delta variant concerns rise, represents
International travel 50% of COVID cases in NYC
restrictions reinstated
5,000
# of Bookings
4,000
School reopening guidance for
‘21 - ’22 academic year
3,000
2,000
1,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep
Maturation in other markets such as Upstate New York, the Berkshires, and Litchfield County –
which have cheaper price points than the Hamptons – also shifted demand away from the
Hamptons market mid-summer. As new rental properties emerged in these markets and
Hamptons pricing stayed at all-time highs, this steered potential renters to search for alternative
markets to vacation in.
Forecasting ahead, the influx of demand, pricing, and revenue experienced over the last 18 months
are likely to revert towards 2019 levels. Prepared with this information, owners should temper their
expectations and take a proactive approach to these changes to generate maximum income for the
2022 season. While rates are not anticipated to mirror 2019, pricing is expected to fall between 2021
and 2019 levels.
THE MOST SUCCESSFUL OWNERS IN 2021 DISPLAYED STRATEGIES THAT
INCLUDED: BOOKING EARLIER IN THE YEAR, MONITORING THEIR ASSETS,
AND PLANNING PROACTIVELY IN RESPONSE TO THE CHANGING MARKET
ENVIRONMENT.
HAMPTONS RENTAL MARKET REPORT 2021 www.staymarquis.com I 3 IMarket Overview
Overall booking activity increased this year in both volume and value. In 2021, peak season
market booking volume grew by ~1,400 (+8.9%) transactions compared to 2020, with an associated
market value increase of $8.2m (+7.5%). This trend reflected lower lengths of stay -- a reversion to
pre-pandemic levels. Higher booking volume and value, coupled with shorter stays facilitated
higher nightly rates for owners. Even though overall nights booked decreased 8.2% vs. 2020,
favorable rates allowed revenue per property to remain flat YoY.
DESPITE A SHIFT IN DEMAND, INVENTORY WAS RELATIVELY STABLE AS MANY
OWNERS CONTINUED TO RESIDE IN THEIR PROPERTIES. THESE TRENDS HIGH-
LIGHT AN EXTENSION OF THE 2020 MARKET ENVIRONMENT AND COLLECTIVE
SENTIMENT AROUND TRAVEL, COVID-19, AND OWNER PREFERENCES.
2019 2020 2021
MDW - LDW MDW - LDW MDW - LDW
# Bookings 23,740 15,284 16,645
Growth (35.6%) 8.9%
Bookings ($ Amount) $124,895,114 $109,212,183 $117,369,259
Growth (12.6%) 7.5%
# Nights Booked 126,309 99,748 91,526
Growth (21.0%) (8.2%)
Avg. Rate / Nt $989 $1,095 $1,282
Growth 10.7% 17.1%
# Booked Properties 4,685 3,428 3,697
Growth (26.8%) 7.8%
Revenue / Property $26,659 $31,859 $31,747
Growth 19.5% (0.4%)
Nights Booked / Property 27 29 25
Growth 7.9% (14.9%)
Avg. Duartion of Stay (# Nights) 5.3 6.5 5.5
Growth 22.7% (15.7%)
I 4 I www.staymarquis.com HAMPTONS RENTAL MARKET REPORT 2021Supply
The number of properties in the Hamptons available for rent in 2021 grew slightly YoY (+7.8%) but
trailed slowly behind 2019 levels – 3,697 in 2021 vs. 4,685 in 2019.
# of Booked Properties in the Hamptons
5,000 $26,659 $35,000
Revenue per Property ($)
# of Booked Properties
$31,859 $31,747
4,000 $32,000
3,000 $29,000
2,000 4,685 $26,000
3,428 3,697
1,000 $23,000
- $20,000
2019 2020 2021
# of Properties Rev. per Property ($)
Another driver of increased inventory came from former renters who turned into owners. During
peak season, a portion of this owner subset either periodically or frequently resided in their
properties. As owners in this segment seek to capitalize on this steady rental demand, supply is
expected to increase in the off-season. Further, preparation time for newly purchased homes
limited marketability of these properties, as furnishing, permitting, and improvement projects
were all delayed throughout the year.
EXPECTED AS OF EARLY 2022, MANY OF THESE HOMES WILL BE MARKET
READY, INCREASING SUPPLY AS WE MOVE TOWARD NEXT PEAK SEASON.
HAMPTONS RENTAL MARKET REPORT 2021 www.staymarquis.com I 5 IDemand
Throughout the 2021 Peak Season, there were 16,645 bookings (+8.9% vs. 2020) executed in the
Hamptons for a Gross Booking Value of $117.5M (+7.5% vs. 2020).
Online Bookings in the Hamptons (MDW - LDW)
$125M
Gross Booking Value ($M)
25,000 $130M
$125M
20,000
# of Bookings
$109M $117M $120M
15,000
$115M
23,740
10,000
16,645 $110M
5,000 15,284 $105M
- $100M
2019 2020 2021
# of Bookings Gross Booking Value
The influx of bookings, compared to total Gross Booking Value, reflects a slight decrease in
occupancy. Lower occupancy levels are an inherent risk to renting with shorter lengths of stay;
average length of stay decreased from 6.5 nights in 2020 to 5.5 nights in 2021.
THIS TREND REFLECTS A BROADER SHIFT BACK TOWARD SHORTER TERM
BOOKINGS, AS THERE WAS A SIGNIFICANT DECREASE IN LONG TERM BOOKINGS
– 39% FEWER TWO-TO-FOUR-WEEK BOOKINGS AND 47% FEWER BOOKINGS
FOR OVER A MONTH THIS YEAR, AS COMPARED TO 2020.
I 6 I www.staymarquis.com HAMPTONS RENTAL MARKET REPORT 2021Long Term Bookings (2 weeks + ) MDW - LDW
9.0%
8.0%
Share of Total Booking Count
7.0%
6.0% 3.6%
5.0%
4.0%
3.0%
1.7%
2.0% 4.1%
1.0% 2.3%
0.0%
2020 2021
14-28 nights > 28 nights
Booking activity for check-in dates later in the year slowed over time. The number of bookings
requested in July for August and September check-ins and their associated Gross Booking Value
have both decreased YoY, 4.5% and 11.1%, respectively.
Online Bookings in the Hamptons made July forward
(August and September Check-Ins) Gross Booking Value ($M)
6,500 $35M $40M
$31M
# of Bookings
6,000 $30M
6,368
5,500 6,080 $20M
5,000 $10M
2020 2021
# of Bookings Gross Booking Value
HAMPTONS RENTAL MARKET REPORT 2021 www.staymarquis.com I 7 IPricing and Length of Stay
Average nightly rates continued their meteoric rise increasing 17.1% in 2021 over 2020.
Average Rate per Night
$1,500 6.5
5.5 7.0
Avg. Length of Stay (Nts)
5.3 6.0
$1,000 5.0
Avg. $/Nt
4.0
$1,282 3.0
$500 $989 $1,095
2.0
1.0
$- -
2019 2020 2021
Avg $/Nt Avg LOS (Nts)
Seasonality has been consistent with prior years. While in 2020, September was achieving peak
season rates, 2021 activity shows that renter behavior has reverted towards pre-pandemic levels,
where activity and pricing for September reflect a more significant drop off from peak season.
2021 Bookings by Month (Based on Check-in Date)
7,000 $60M
Gross Booking Value ($M)
6,082
6,000 5,322 $50M
5,059
# of Bookings
5,000
4,557 $40M
4,000 4,059
2,546 $30M
3,000 2,178 $49
$31 $39
$20M
2,000 1,148
1,430 $8 $20
$7 $19 $10M
1,000 $4
$3
- $0M
Jan Feb Mar Apr May Jun Jul Aug Sep
# of Bookings Gross Booking Value
I 8 I www.staymarquis.com HAMPTONS RENTAL MARKET REPORT 2021Future Expectations
A reversion to pre-COVID off-season booking trends is expected to extend into October. Owners
who opened off-season dates earlier, however, have been able to use lead time to their advantage
achieving higher nightly rates than owners who decided to open fall dates towards the end of the
summer. September bookings executed within one week of check-in post-LD had a 14% lower
average nightly price, as compared to those executed six to eight weeks early ($836 / night vs. $972
/ night); the same is true for October.
Post-LD September October
Lead Time Booking Dollars Avg. Nightly Rate Booking Dollars Avg. Nightly Rate
Less than 1 Week $1,490,554 $836 $0
1 - 2 Weeks $860,012 $888 $16,698 $757
2 - 4 Weeks $1,560,920 $932 $614,416 $800
4 - 6 Weeks $1,264,314 $968 $740,479 $826
6 - 8 Weeks $947,345 $972 $784,276 $874
8 - 12 Weeks $1,190,825 $979 $825,337 $859
Evaluating pricing through the lens of its key drivers – 1) demand at the individual renter level, 2) size
of renter pool, and 3) market level inventory – it is expected that future nightly pricing will revert to
lower levels as each one of these key drivers will individually slide backwards. Collectively, these
drivers will produce a compounding, negative effect. As vaccination rates have increased, renters
are becoming more comfortable with traveling, dampening comparisons to 2020 behavior and the
notion of “needing to get out of the house”. Further, as borders open, potential renters are expected
to increasingly opt for fly-time locations versus those within driving distance. This mentality towards
travel creates market-level travel decisions that are expected to have a negative impact on demand
to the Hamptons, relative to the last year. As owners who have been living in or improving their
properties re-open them for bookings, this increased supply will also create a drag on pricing.
AS A RESULT, BOOKINGS EXECUTED NOW FOR PEAK SEASON 2022 ARE
LIKELY TO COME IN AT HIGHER RATES – ANY OWNER WHO PLANS ON
MARKETING THEIR PROPERTY FOR NEXT SUMMER SHOULD OPEN
AVAILABILITY AS SOON AS POSSIBLE.
HAMPTONS RENTAL MARKET REPORT 2021 www.staymarquis.com I 9 I2021 StayMarquis Highlights
In the News:
We were recognized by INC5000 for the second year in a row, #343 Fastest Growing Private
Company in the Country and #4 in the Travel & Hospitality Sector
Enhanced Services:
Rolled out Home Vision, our tech-enabled property management service, currently with
over 40 properties enrolled
Newly launched “Pricing Analytics Dashboard” (PAD), available to all owners on our platform
This dashboard provides real-time, data driven pricing recommendations for owners
and their properties
Newly launched Advisory Services for prospective buyers, helping existing and future
owners source buying opportunities and understand realizable income levels for potential
purchases
As always, please do not hesitate to reach out if you have any questions about the rental market,
need a full-service solution to renting your home, or need property management services.
For owners, please email owners@staymarquis.com
For travelers or travel agents, please email travel@staymarquis.com
For brokers, please email broker@staymarquis.com
We hope you find this analysis helpful and hope to hear from you soon!
The StayMarquis Team
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