Mausam Bhatt Chief Product and Technology Officer | realtors.com
As the latest summer season for New York City’s poshest beach locale winds down, rumors suggest that the Hamptons scene has lost its appeal.
“Summering in the Hamptons is dead,” a recent New York Post headline announced, pointing out that “budding influencers are trying to outdo each other vacation-hopping instead.”
One reason the Hamptons may have lost its allure among influencers could be overexposure. A recent study found that when an influencer posts a social media picture at a certain destination like the Hamptons, it becomes less appealing for others to copy since it’s seen as unoriginal.
“We want to stand out by being a little different,” Zoe Y. Lu, an assistant professor of marketing at Tulane University and the lead author of the paper, told the Wall Street Journal.
“People want to go off the beaten path,” Tony Abrams, who runs high-end travel company Four Hundred, told the Post. “The cool people who are posting and creating content are going to Paros, Antiparos, Marbella, the Cotswolds … because it’s different.”
This influencer exodus has impacted the Hamptons rental market, which saw an influx of available properties without the usual fervor from vacationers.
“The rental market was flooded with inventory this year, and the pace of rental transactions slowed accordingly,” says Michele Mahlof The Agency Hamptons.
The National Real Estate Roundtable reports an increase in available rental properties inventory, leading to price reductions of 10% to 20% compared with the previous year.
This news might not bode well for Hamptons landlords; however, its impact on real estate for homeowners is less clear. It could even benefit those who dislike crowded shores.
So far at least, Hamptons home prices remain robust.
“Home prices continue to climb in the Hamptons,” says Hannah Jones, senior economic research analyst at Realtor.com®.
In August, home prices were up 7.9% year over year in Suffolk County, NY. Price per square foot increased by 13.6%. East Hampton and Southampton saw slower price growth but still recorded increases of 2.6% and 2.1% respectively in home prices year over year. The price per square foot rose by 4.8% and 1.6%.
Real estate agents report no decrease in buyer interest.
“This summer we saw great momentum coming off a strong spring season, continuing the strength exhibited last year,” says Mahl. “The trophy market has continued to thrive with remarkable activity; we anticipate sustained growth in this segment.”
Actors, musicians, business leaders, and media personalities including Drew Barrymore, Richard Gere, Beyoncé and JAY Z., Billy Joel, Alec Baldwin, Robert Downey Jr., Robert De Niro, and Calvin Klein are among those known to spend summers here.
The area has also gained fame through TV shows such as “Sex and the City,” “Gossip Girl,” and “The Affair” as well as movies including “The Bonfire of the Vanities,” “Wall Street,” and “No Hard Feelings.”
Owners of top properties here may prefer fewer influencers crowding streets and dining venues. Additionally young influencers often lack means to purchase homes here.
“Young buyers are likely not looking to purchase a home in these high-priced markets where median-priced homes cost nearly $3 million or more," points out Jones.
In other words let influencers travel abroad leaving Hamptons to homeowners—just about everyone may be happier for it.
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