Why this is the best time to book a Jersey Shore summer vacation rental home

If you haven’t booked a rental home at the Jersey Shore for this summer, you’re not alone.

About one-third of vacationers haven’t even started their search and many others have adopted a wait-and-see approach, experts said.

The sluggish start to the season means there are still plenty of homes available and the weaker demand is keeping rates from aggressively climbing.

“The booking window is much longer and more concentrated towards the (start of summer),” said Duane Watlington, CEO and founder of Vacation Rentals Jersey Shore, LLC, which lists homes for rent in Long Beach Island, Wildwood and Ocean City.

Jersey Shore rental homes were in high demand during the pandemic and the two years after because people were reluctant to fly to vacation destinations and they were working remotely so they had more freedom on when and how long they could stay at the Shore.

But as workers headed back to the office and the pandemic travel restrictions faded, demand for shore rentals has waned.

The last two years rentals have been down 7% to 8%, said Matthew Schlosser, vice president and broker at Schlosser Real Estate in Lavallette, whose agency handles rentals from Seaside Park to Normandy Beach, but most are in Lavallette.

“The previous two years we’ve been losing June and September bookings,” he said, adding that the typical nine to 10 week season has returned.

Many renters are taking their time booking, said Jack Vizzard of Berkshire, Hathaway HomeServices, Fox & Roach, Realtors in Avalon.

“We used to have people, after finishing their week, they would book for next year,” he said.

Now with access to online rental listings, people are more inclined to wait and watch. “They’re not pulling the trigger because they can see it’s still available,” Vizzard said. “And then they pull the trigger in late May or June.”

Watlington, who operates websites with more than 2,900 rentals in Wildwood, Ocean City and Long Beach Island, said his sites have been busy with traffic but many are “looking not booking.”

However, the number of bookings has increased in recent weeks.

For the most in-demand weeks of July 19 through August 16 on his sites, Watlington said, Long Beach Island is 83% booked, Ocean City is 82% booked, and Wildwood is 75% booked."

“We expect it to continue to grow right up until summer,” he said.

Another byproduct of the pandemic that seems to be over is large rental price increases, year over year. Rents have increased 20% to 30% since 2020.

“We finally said to landlords, you have to slow down,” Schlosser said. “I don’t see dramatic increases in rents the last two years. It’s more steady.”

Someone looking for an average rental in the Lavallette area could expect to get a middle block, single family home with three or four bedrooms for about $5,000 per week, he said.

But he also has rentals that range from $1,700 to $22,000 per week. The high-end ones are newer homes on the beach block, they might have a pool and have five or six bedrooms, he said.

Houses that are large enough for multi-generational groups, houses with a pool or accommodations that are pet friendly tend to book quickly.

“Larger homes with pools have maintained their value and are booked up. There’s not too much left,” said James Ward, of Keller Williams Ocean Living in Point Pleasant.

The economy is also affecting the Shore rental market.

People are spending more money on things like groceries and scaling back on their Shore vacations by staying for fewer days or modifying their usual trip.

“They’re still going on vacation, but maybe they’re not spending $15,000 on a rental for a week. They’re spending $10,000. Or they might not be going to Avalon, they’re going to Sea Isle City,” Vizzard said.

The owners of rental homes are feeling the economic squeeze, too.

“People who bought houses or panic bought in the pandemic are looking to recoup some of their expenses with inflation and credit card debt,” Ward said. “We’re seeing new inventory come in ... from people who want to rent their homes out for a few weeks, who normally wouldn’t.”

If you want to rent a house this summer, Watlington says, you shouldn’t wait much longer.

“We anticipate a steady growth of traffic from now through summer as last minute planners start to book,” he said.

You will have more homes to choose from if you’re willing to visit early or late in the season. And you could save money if you go during the shoulder months of June and September.

“You can save as much as 50% to 75% off what you would pay during peak season,” Watlington said. “And the weather is great!”

Are you an agent, buyer or seller who is active in this changing market? Do you have tips about New Jersey’s real estate market? Unusual listings? Let us know.

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Allison Pries may be reached at apries@njadvancemedia.com.