GREEDY HOLIDAY RENTAL OWNERS ON CLASSIC COASTAL STRIP LEARN HARSH LESSON AFTER JACKING-UP PRICES TOO HIGH, WITH LUXURY TRIPS TO ITALY NOW CHEAPER
Holiday home owners on the famed Jersey Shore have seen rental bookings slump after jacking prices so high it's now cheaper to vacation in Italy.
The once booming rental-market has come to a screeching halt with locals and holiday goers alike turning their backs on sky-high prices in favor of more affordable - and often more exotic - alternatives.
The slump began last summer, but has come to a breaking point early this season as panic brews among homeowners looking for renters. Analysts say some rentals are priced about a third higher than they should be.
And bookings have fallen so badly this season that they are now offering discounted weeks, for last-minute bookings, and abandoning long-standing practices like requiring renters to book Saturday to Saturday, as reported by the Philadelphia Inquirer.
Vacationers are now opting for cheaper rentals abroad including to exotic locations like Aruba, North Carolina, or even Italy for less than the cost of a Jersey Shore stay.
One Avalon mansion, with enough beds for ten guests, has seen its weekly rate plummet from a whopping $5,250 in July to a mere $3,000 come September.
Meanwhile, a Ventnor property sleeping 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 and 2 paddle boards!' reads the listing, in what appears to be a last-ditch effort to attract renters.
A Montgomery County mom, who wished to remain anonymous, said she was quoted $36,000 for four weeks in a five-bedroom house in the 'war zone' of Sea Isle City.
'So we're heading to Italy for two weeks for less than half the price,' she wrote.
Cole Checkoff, who runs a short-term rental management website in the area, revealed to the outlet: 'There was a lot of inventory that went unrented for people asking $30,000 a month for houses that are only worth $20,000 a month.'
'That put me in a good position,' he said. 'I slice up the calendar a little bit more, [offering rentals for a week or less]. Things have been booking more last minute. The booking window has been reduced over the last couple of summers.'
During COVID, travel bans and general fear of catching the virus spiked domestic demand for classic US resorts like those along the Jersey Shore as Americans were deterred from traveling.
But traveling abroad for a vacation is now more popular than ever before - with the good times well and truly over for many US resorts that boomed during COVID.
'The world changed back to what it used to be. Internationally, people have the options they didn't have three years ago,' said Tara Cruser-Moss, a realtor at Berger.
Some investment property owners are also feeling the pinch.
A Sea Isle buyer, who increased rents to cover his mortgage said, 'Last summer, I had the whole place rented.'
'People were reaching out left and right. I upped my rates slightly, the highest at $3,500 to $3,750. It's a lot of work,' he added, admitting, 'I'm not making a lot of profit. I thought I'd have just an easier time filling it.'
Maria Sacco Handle, a realtor in Brigantine, has provided advice to clients searching for renters.
She told her clients to reduce minimum stays, lower weekly rates by 20 percent, and even consider selling.
'Given the sluggish rental market contrasted with a thriving sales market, it may be worth considering selling your property,' Handle warned. 'We suggest evaluating this option sooner rather than later to avoid potential over saturation in the market.'
She noticed many people selling recent home purchases in the over-saturated Brigantine market.
Before the pandemic in 2019, there were 500 rentals on the islands, she told the Inquirer.
Today, there's a staggering 950 listed rentals.
'A lot of people thought they wanted to be AirBnB owners,' she said.
'We're telling them to cut the prices down,' she said. 'Add in all the additional amenities. Include the linens. At the end of the day, it's 'I can take my whole family on a cruise for the same amount as the shore, and food is included.'
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