Overview of At The Money: Grab Your Summer Rental Soon!!
This Bloomberg At The Money episode explores the 2026 summer rental market for beach houses, lake homes, and other vacation properties, with a focus on places like the Hamptons, Jersey Shore, Cape Cod, the Berkshires, mountain towns, and other second-home destinations. Host Barry Ritholtz speaks with Jonathan Miller of Miller Samuel about how demand, pricing, mortgage rates, and post-pandemic behavior are shaping the market. The main message: there’s still inventory, but prime rentals are being snapped up later than they used to be, and the market remains expensive even as it normalizes from the frenzy of recent years.
Key Takeaways
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Summer rental demand remains active, but less frenzied than during the pandemic years.
- Inventory is still available in many markets, but premium properties are getting claimed closer to summer, especially after Memorial Day.
- The old rule of “book by February or miss out” has softened in many places.
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The market reflects broader consumer spending patterns.
- Miller views summer rentals primarily as a luxury consumption good, not a leading economic indicator.
- Demand tends to track the strength of affluent consumers, especially those tied to financial markets and bonus compensation.
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Higher rates affect both buyers and renters.
- Rising mortgage rates make second-home purchases harder, which can push more people into renting.
- That added demand can reduce available inventory and support higher rent levels.
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The market is increasingly “Amazonified.”
- Consumers are more comfortable waiting until the last minute and booking on demand.
- This shift is seen as structural and likely to persist after the pandemic.
Market Dynamics Discussed
Luxury vs. Mid-Market Demand
- The strongest demand is concentrated in the upper end of the market.
- Middle- and lower-priced vacation rentals appear softer by comparison.
- This mirrors the broader “K-shaped” economy, where higher-income households are doing better than everyone else.
Regional Trends
- The pattern is not unique to the Hamptons.
- Similar activity is happening in:
- Berkshires
- Cape Cod
- Great Lakes destinations
- Mountain towns
- California beach communities
- Sunbelt escape markets like San Diego for Texas and Southwest residents
Second-Home Behavior
- Many renters use summer rentals as a test drive before buying.
- Renting for one or more seasons helps families decide whether they want to own in that area long term.
- This is especially common in slower-moving second-home markets.
Notable Observations
Construction Boom in Vacation Markets
- Miller notes heavy construction in the Hamptons and similar wealthy vacation areas.
- Existing homes that aren’t turnkey are often torn down and replaced with much larger custom builds.
- Local contractors and tradespeople are in high demand, creating the so-called “trade parade” of workers commuting in daily.
Post-COVID Lasting Effects
- COVID likely extended the use of second homes, helped by remote work and Zoom.
- It also made consumer behavior more last-minute and less predictable.
- While demand is no longer as overheated, the market still has a solid base level of activity.
Practical Advice for Renters
- Don’t wait too long if you want a prime summer rental.
- Inventory exists, but the best locations and properties are already being claimed.
- Expect prices to remain high, though not necessarily at record highs.
- If you’re shopping for a summer place, the season is still open — but the good options may not last.
Bottom Line
The summer rental market is still healthy, but it has shifted from a panic-buying, early-booking environment to a more on-demand, last-minute one. Affluent consumers continue to support strong demand for high-end vacation rentals, while middle-tier demand is more uneven. For anyone hoping to secure a beach, lake, or mountain rental, the takeaway is simple: act soon, because the best summer properties are disappearing fast.