Introduction to Hamptons Rentals

Summer rentals in the Hamptons are off to a slow start, with unrented homes piling up and sales slowing down, according to brokers. Judi Desiderio of William Raveis Real Estate reports that Hamptons rentals are down 30% from the same period in previous years. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop, with their rental business down between 50% and 75%.

Factors Contributing to the Decline

Some renters may be holding out for better deals or waiting to book, but brokers privately say there are other factors at play. Enzo Morabito, head of the Hamptons-based Enzo Morabito Team at Douglas Elliman, states that "people are holding on to their money" due to uncertainty. The volatility in the stock market and economic uncertainty sparked by the ever-changing tariff landscape has made some affluent renters and even some buyers hold off on a pricey Hamptons vacation this summer.

Impact on Homeowners and Brokers

Morabito represents several homeowners with large waterfront and luxury properties that typically would have been rented by March or April, but are still available. Some homeowners who rent out three or four homes in the Hamptons during the summer may start to question their investments after this summer if renters don’t start emerging. Brokers are seeing a surge in unrented inventory, which means potential bargains and choice for renters.

Shift in Rental Strategies

As a result of the decline, some listings have started lowering their prices by 10% to 20% in hopes of saving the summer. Some homeowners are adding more flexibility, allowing for shorter one- or two weeks stays in hopes of getting renters. Gary DePersia of My Hampton Homes notes that the best houses in the Hamptons typically get rented early in the year, but this year he has great rentals available in every town, from Southampton to Montauk.

Economic Uncertainty and Tariffs

While tariffs and economic uncertainty may play a role in the slump, DePersia says renters seem to have been waiting longer and longer every year, perhaps holding out for better deals. Eventually, he says, they end up renting. Desiderio believes that the combination of weather and grim economic headlines made for a slow start that will quickly reverse.

Home Sales in the Hamptons

When it comes to home sales, the Hamptons real estate market remains fairly strong, despite relatively low inventory. Sales in the first quarter were down 12% from a year ago, although the median sales price jumped 13% to a record $2 million. Brokers say when a quality home in the Hamptons is priced right, it sells immediately.

Conclusion

In conclusion, the Hamptons rental market is experiencing a slow start to the summer season, with a decline in rentals and a surge in unrented inventory. However, brokers remain optimistic that the market will pick up as the summer progresses. With potential bargains and choice for renters, the Hamptons may still see a strong summer season.

FAQs

Q: What is the current state of the Hamptons rental market?
A: The Hamptons rental market is down 30% from the same period in previous years, with ultra-high-end rentals seeing an even bigger drop of 50-75%.
Q: What factors are contributing to the decline in rentals?
A: Uncertainty, volatility in the stock market, and economic uncertainty sparked by the ever-changing tariff landscape are contributing to the decline in rentals.
Q: How are homeowners and brokers responding to the decline?
A: Some listings are lowering their prices by 10-20%, and homeowners are adding more flexibility to their rental agreements, such as allowing for shorter stays.
Q: What is the current state of the Hamptons home sales market?
A: The Hamptons home sales market remains fairly strong, despite relatively low inventory, with sales in the first quarter down 12% from a year ago, but the median sales price jumping 13% to a record $2 million.

Impact of Tariffs on Retailers

Consumers who hoped tariffs would not hit their wallets keep getting bad news. As they reported earnings in recent weeks, multiple major retailers said they have already raised some prices or plan to hike them in the coming weeks to offset the duties. They include major grocers and consumer goods sellers Costco, Best Buy, Walmart, and Target.

President Donald Trump’s ever-changing trade policy has roiled retailers as they try to plan their supply chains. On earnings calls, they faced the difficult task of trying to appease investors who want them to protect their bottom lines and shoppers who could balk at price hikes.

In some cases, companies have been explicit, citing the estimated toll tariffs will take on their bottom lines and breaking down which countries their supply chains rely on. Other retailers have been less forthcoming, avoiding the word "tariff" and instead blaming strategy shifts or price hikes on "macroeconomic uncertainty" — or simply refusing to point the finger at all.

Many retailers have reduced or withdrawn their full-year guidance because of tariffs. Companies such as Abercrombie & Fitch, Macy’s, and Best Buy have slashed their profit outlooks. Meanwhile, American Eagle, Canada Goose, Ross, and Mattel pulled their full-year guidance.

After Trump implemented steep tariffs on dozens of countries in April, his administration has temporarily cut them to lower — but still significant — levels. Imports from China face a 30% duty, while goods from many other nations are subject to a 10% duty. A federal trade court struck down many of those tariffs on Wednesday, only for an appeals court to reinstate them, adding to the uncertainty retailers face.

Economists on both sides of the aisle agree that tariffs are inflationary and the cost will likely be passed on to consumers, though government data has not showed a clear effect yet. A majority, 68%, of U.S. CEOs say they have either increased prices already or are considering doing so this year in the face of tariffs, according to a new survey by Chief Executive Group and AlixPartners.

Retailers’ Plans to Raise Prices

Here’s a breakdown of what several major retailers have said about their plans to raise prices as a way to mitigate the tariff impact.

Brands that have already raised some prices

Customers look over personal health items displayed at a Costco branch.
Executives of the warehouse club retailer told investors that tariffs have forced the company to tweak its supply chain and raise prices in some cases. Costco has absorbed tariff costs for some goods, while it has increased prices in other instances, said CFO Gary Millerchip.

Best Buy has already raised prices on some items to offset tariff costs, CEO Corie Barry said on a call with reporters. Changes took effect by mid-May. She declined to say which items are affected and called price hikes "the very last resort" for Best Buy.

On SharkNinja’s latest earnings call in May, CEO Mark Barrocas said the company has already increased prices for several of its key products in response to tariffs and will "continue to look for additional opportunities" to do so. As an example, he said the company recently raised the price of one of its Ninja espresso machines from $499 to $549 and saw "no degradation in demand."

Executives from Newell Brands, which owns stroller company Graco as well as Rubbermaid, Yankee Candle, Paper Mate and Sharpie, said during an April 30 earnings call that the company has raised prices on its baby gear by about 20%. The company said it is equipped to handle Trump’s tariffs, unless he raises duties on imports from China again, since the majority of baby gear sold in the U.S. is made in China.

Retailers that say they plan to increase prices

Walmart shoppers will likely see price increases toward the end of May and more in June because of tariffs, said Chief Financial Officer John David Rainey during an interview. Executives did not specify during the company’s most recent earnings call how much more Walmart c

Introduction to Luxury Air Travel

U.S. airlines are competing for international business-class dominance, with American Airlines planning to start flying its upgraded business-class "suites" featuring a sliding door and other premium features. The airline will offer eight "Preferred" suites with 42% more "living area" on its Boeing 787-9P Dreamliners, available on a first-come, first-served basis with no upcharge.

The Evolution of Business-Class Suites

United Airlines is also upgrading its Polaris long-haul business class seats with doors, creating a new option called "Polaris Studio" with an ottoman, and installing 27-inch 4K screens. The studios are 25% larger than regular suites, but the airline has not yet announced pricing. Other airlines, such as Virgin Atlantic and Lufthansa, are also offering high-end suites with unique features like double beds and three-room options.

The Battle for Business-Class Supremacy

The competition for business-class dominance is heating up, with airlines like Delta Air Lines already offering suites with sliding doors in its Delta One cabin. American and United are taking a page from Delta’s book, while also introducing new features to differentiate themselves. The goal is to attract high-paying customers who are willing to splurge on luxury travel experiences.

Betting on Business

Business-class tickets are costly, with prices ranging from $5,747 for a round-trip ticket from Philadelphia to London on American’s new suite. However, airlines are banking on the fact that consumers will continue to pay a premium for better travel experiences, despite weaker demand for lower-priced tickets. The industry’s high costs and thin margins make it essential to get more customers to pay up for pricier seats.

The Importance of Premium Seats

Airlines are investing billions in luxury cabins, with American increasing its lie-flat seats and premium economy seating by 50% by the end of the decade. United is also growing its cabin with its Boeing 787-9 Dreamliners outfitted with eight "Polaris Studios" and 56 Polaris business class suites. The number of premium seats is rising, along with the experience, as airlines try to differentiate themselves and attract high-paying customers.

Softer Touches

Airlines are also focusing on the "soft product," including plush bedding, comforts like noise-cancelling headphones, and upgraded food and beverage offerings. American has announced that it won’t collect its Bang & Olufsen headphones from Flagship travelers before landing, while United is offering enhanced meal choices and amenities like red pepper flakes. However, the top-tier business class still lags behind international airlines in terms of over-the-top amenities.

Conclusion

The competition for business-class dominance is driving innovation and investment in luxury cabins, with airlines offering unique features and amenities to attract high-paying customers. While the industry faces challenges like high costs and thin margins, the demand for premium travel experiences remains strong. As airlines continue to evolve and improve their offerings, the future of luxury air travel looks bright.

FAQs

Q: What is American Airlines’ new business-class suite?
A: American Airlines’ new business-class suite features a sliding door, a "trinket tray," and a wireless charging pad, with eight "Preferred" suites offering 42% more "living area" on its Boeing 787-9P Dreamliners.
Q: How much does a business-class ticket cost?
A: A business-class ticket can cost upwards of $5,747 for a round-trip ticket from Philadelphia to London on American’s new suite.
Q: What is United Airlines’ Polaris Studio?
A: United Airlines’ Polaris Studio is a new option that offers an ottoman and is 25% larger than regular suites, with enhanced meal choices and amenities like red pepper flakes.
Q: What is the future of luxury air travel?
A: The future of luxury air travel looks bright, with airlines continuing to invest in luxury cabins and unique features to attract high-paying customers and differentiate themselves in a competitive market.