Consumer behavior has structurally shifted towards last-minute, on-demand bookings for summer rentals, much like ordering products from Amazon. The traditional model of securing rentals months in advance is being replaced by a more spontaneous approach, with significant activity occurring after traditional deadlines like Memorial Day.
The vacation rental and second-home market is clearly bifurcated. The high-end, luxury segment is thriving, supported by affluent consumers who are less sensitive to interest rates, while the middle-to-lower end of the market is experiencing softness due to affordability challenges.
The frenzied activity seen during the COVID-19 pandemic has subsided, and the market is returning to a more normal, albeit still strong, state. Rents are stabilizing at pre-pandemic levels, and while inventory is available, it's not a weak market but rather a less intense one.
High-end vacation destinations like the Hamptons are witnessing a massive boom in new construction and renovations. This activity is primarily driven by the financial success of affluent buyers, leading to fully booked contractors and significant local traffic congestion (the 'trade parade').
Keep pulling the thread on Jonathan Miller.