Owners of holiday homes on the famous Jersey shore have seen rental bookings plummet after prices rose so much that it is now cheaper to holiday in Italy.
The once-booming rental market has ground to a halt, with residents and tourists alike turning their backs on sky-high prices in favour of more affordable and often more exotic alternatives.
The decline began last summer but came to a head earlier this season as panic sets in among landlords looking for tenants. Analysts say some rentals are priced a third higher than they should be.
And bookings have dropped so dramatically this season that they are now offering discounted weeks for last-minute bookings and abandoning long-standing practices like requiring renters to book from Saturday to Saturday, the hotel reported. Philadelphia Inquirer newspaper.
Vacationers are now opting for cheaper rentals abroad, even in exotic locations like Aruba, North Carolina or even Italy, for less than the cost of a stay on the Jersey Shore.
Greedy homeowners along the iconic Jersey Shore who jacked up prices now face a harsh reality: Demand for “overpriced” rentals is plummeting and locals say it’s cheaper to head to the Caribbean or even Italy (pictured: massive home on Long Beach Island, New Jersey)
An Avalon mansion, with enough beds for ten guests, has seen its weekly rate fall from a whopping $5,250 in July to just $3,000 in September.
Meanwhile, a property in Ventnor that sleeps 12 is desperately trying to justify its $7,600 weekly price tag by attempting to sweeten the deal with unexpected extras.
“Just Added: 6 Seater Golf Cart & 2 Paddleboards!” the listing reads, in what appears to be a last-ditch effort to attract renters.
A Montgomery County mother, who asked to remain anonymous, said she was quoted $36,000 for four weeks in a five-bedroom home in the “war zone” of Sea Isle City.
“So we’re going to Italy for two weeks for less than half the price,” he wrote.
Cole Checkoff, who runs a short-term rental management website in the area, told the outlet: “There was a lot of inventory that wasn’t renting because people were asking $30,000 a month for houses that are only worth $20,000 a month.”
“That’s put me in a good position,” he said. “I spread out the calendar a little bit more (by offering rentals for a week or less). Reservations have become more last-minute. The booking window has been reduced the last two summers.”
During the COVID pandemic, travel bans and general fear of contracting the virus increased domestic demand for classic US resorts such as those on the Jersey Shore as Americans were deterred from traveling.
But traveling abroad for the holidays is now more popular than ever, as the good times are over for many American resorts that experienced a boom during COVID.
“The world is back to what it was. Internationally, people have options they didn’t have three years ago,” said Tara Cruser-Moss, a Berger real estate agent.
Some investment property owners are also feeling the impact.
One Sea Isle buyer, who raised rents to cover his mortgage, said, “Last summer, I rented out the entire house.”
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“People were contacting me from all sides. I raised my rates slightly, the highest from $3,500 to $3,750. It’s a lot of work,” she added, admitting: “I’m not making much money. I thought it would be easier for me to fill the position.”
Maria Sacco Handle, a real estate agent in Brigantine, has provided advice to clients looking for tenants.
He told his clients to reduce minimum stays, lower weekly rates by 20 percent and even consider selling.
“Given the slow rental market compared to the thriving sales market, it may be worth considering selling your property,” Handle cautioned. “We suggest evaluating this option as soon as possible to avoid potential market saturation.”
She noticed many people selling homes they had recently purchased in Brigantine’s oversaturated market.
A Montgomery County mother said she was quoted $36,000 for four weeks in a five-bedroom home in the “war zone” of Sea Isle City, so she’s heading to Italy for two weeks for less than half the price.
Before the 2019 pandemic, there were 500 rentals on the islands, he told the Inquirer.
Today, there are a staggering 950 rentals listed.
“A lot of people thought they wanted to be Airbnb owners,” he said.
“We’re telling them to lower the prices,” he said. “Add all the extras, including bedding. In the end, it’s ‘I can take my whole family on a cruise for the same price as the coast, and food is included.'”