Vineyard vacation rental companies are advising clients to consider lowering their weekly rates in response to a large number of vacancies this season.
After soaring to new heights in the wake of the pandemic, vacation rental prices on the Vineyard are seeing a downturn in response to a larger number of vacancies this season. While top-end homes appear to be immune from the booking slump, some mid-market homeowners are scrambling to fill open weeks ahead of Memorial Day.
Increased supply in the market has been a factor, Island real estate agents say. Currently, the Vineyard has about 3,800 rentals, up from about 2,500 in 2022, according to the state.
Several companies representing properties on the Vineyard said they have been advising clients to consider lowering weekly rentals as the market starts to settle back to pre-pandemic levels.
Peak summer is booked, but the shoulder seasons have openings.
Peak summer is booked, but the shoulder seasons have openings.
“I think homeowners are realizing they can’t command the kind of prices they were getting in the pandemic,” said Joan Talmadge, co-owner of regional rental company WeNeedAVacation.com.
Ms. Talmadge said her company’s average weekly rental prices on the Vineyard grew by 66 per cent over the last six years — a steeper increase than on both the Cape and Nantucket.
Charts from WeNeedAVacation show the average weekly price of a three-bedroom home rental on the Vineyard going for just under $6,000 a week in 2023, up from under $4,000 in 2019. But bookings for the company in 2024 have declined slightly compared to last year, down 4.4 per cent overall. Spring saw the largest drop at almost 11 per cent.
Other rental companies reported similar dips, though all said that the season was about on par or slightly above 2019.
“The market is resettling back to 2019, to pre-Covid levels,” said Wendy Harman, the founder of Point B Realty.
The increase in the number of rentals has saturated the market, leaving more vacancies than in the red-hot early pandemic years, she added.
“The supply and demand is just off,” Ms. Harman said. “There’s more supply than there is demand.”
High summer is still fully booked, with agents reporting no vacancies in August. But earlier in the summer and the fall still has more availability than in recent years.
“Basically, we suggest they lower their rates,” said Karen Overtoom, owner of Karen Overtoom Real Estate. “That has helped fill them.”
Other trends are also emerging.
High-end rentals with pools and other amenities seem to be immune from the booking slump.
High-end rentals with pools and other amenities seem to be immune from the booking slump.
With Steamship Authority vehicle reservations during peak weekends hard to come by, some owners are shifting away from the usual weekly minimum stay, or moving the traditional weekend turnover day.
The Steamship Authority reported 25,020 vehicle reservations on the Vineyard route during opening day in February, up from both 2022 and 2023.
“We’re seeing more owners going to Fridays and Mondays,” said Ms. Harman. “Some of those folks are being creative and thinking outside the box.”
Several companies noted that even though the overall number of leases signed for the season have gone down, the total rental income is about the same as last year. Agents said it appears higher-end properties and rentals with sought after amenities such as pools and central air are still booking up — at times for longer stays.
For instance, Point B reported a 15 per cent increase in rents collected in the first quarter of 2024 over the same period last year, but the number of transactions was down 15 per cent.
“I would say high-end properties don’t have issues to rent,” said Larysa Trafas, a vacation rental specialist at Seacoast Properties. “The middle class struggles.... We have fewer bookings but the dollar amount is almost the same as last year.”
Rental companies emphasized that they didn’t think it was going to be a bad year, but they did feel there would be a shift away from the historic highs from the pandemic years.
“The trends that are shaping the short-term rental market in 2024 have brought both challenges and opportunities and the next two months will be key periods as we work to book open dates,” Ms. Harman said.
Comments
We're not returning this
Jim Edison, New JerseyWe're not returning this summer after 10 straight prior years of renting for 2 weeks in August. Last year's lease, coupled with way too high cleaning/turnover fees and the new local tax surcharges is one set of crazy cost factors. But the cost of taking a family out to eat last year became insane on MV. We're joining my brother's family this year, renting a NH lake house next to his rental, where he's been renting for 8 years. He said I can't imagine how much we're going to save. And no ferry reservations to hassle with!
We welcome you with open arms
Peter Trowbridge NHWe welcome you with open arms.
Sadly we are also not coming
Beth W BostonSadly we are also not coming back for a two-week stay this summer, after doing so every August for the past 26 years! We have always rented in the same neighborhood and have found the rental prices to be completely out of this world. I just can’t justify the cost. It doesn’t sit well with me. We will try to visit for a couple days in the fall instead. We love MV!
You are right on point. I
seasonal edgYou are right on point. I have owned a seasonal home here for 45 years(and NEVER rented it out). When a home is sold on my street, the new owners seem to always expect to 'cash in' on big rental money. These are homes that were never rented before, so it adds to the inventory of available rentals. Without an increase in people seeking to rent, prices will come down due to simple supply/demand. And as you noted, the 'value' is diminished when a family on vacation expects to dine out at a reasonable price. $30++ for a burger is not reasonable.
We cut the cord with MV last
Ellen Casali Philadelphia, PAWe cut the cord with MV last summer after 12 summers and booked our 2 weeks in Camden, Maine. We had a great time. We're returning this summer. For the first time in years we didn't have to fret over whether we could get our car over to MV on the ferry. The $8 Budweiser, $30 burger and $24 shrimp cocktail hasn't landed there, yet, and we can take our family of 4 out to eat and not feel like it's a car payment each night. We'll cherish our memories of Island time, but we're happy to make new memories, too.
In addition I have seen more
sarah brooklynIn addition I have seen more and more beaches off limits to summer vacationers. I have also utilized the wonderful Land Trust trails which are located down roads that have signage posted private ,no trespassing not vey inviting for tourism. These sites also have no parking.
JIm, you captured the problem
Susan PennsylvaniaJIm, you captured the problem perfectly with " the lease, coupled with way too high cleaning/turnover fees and the new local tax surcharges is one set of crazy cost factors. But the cost of taking a family out to eat last year became insane on MV." Sadly, after many years, we may skip our beloved MV except for occasional shoulder season weekends.
This was bound to happen!
L Diddy RockvilleThis was bound to happen! Demand during the pandemic was an aberration. Except for the two first weeks in August, MV is returning to normal market forces. Consumers have more options available for spending their vacation dollars. You can rent a villa in Italy, air fare included, for less than a MV high end home. Homeowners should realize that the boon days are over.
I told everyone the tax
Pete EdgartownI told everyone the tax surcharge on short term rentals was a very very bad idea… it would drive people away….
We don’t have to worry about affordable housing anymore, there will be plenty of it… no renters equals no jobs equals no need for housing….what a shame.
Where did all this tax revenue the local Towns receive go?? They will not be seeing it any longer, now what raise taxes???
The next thing we will see is people leaving our great Island, because we are a Tourist based economy.
Everyone who works or lives on MV should be very concerned about this.
Suggestions:
1. Appeal the lodging tax
2. Allow all Short term rentals
3. Discount for the SSA for summer travel
4. Restaurants work together form a plan, discounts mis week dining etc…
There are so many easy ways to fix this… if we work together.
Let’s stop being anti tourist people!
you are exactly right...
Michael edgartownyou are exactly right....every restaurant, and summer business should be concerned about this...the resentment from locals is asinine......gouging the people with fees, taxes, credit card additional charges, has taken notice of the tourists.... and I mean it, when I pay top dollar for mediocre food, I take notice at restaurants....$400 round trip for the ferry. thats now a deal breaker for everyone
Agree with everything “Pete”
Beth EdgartownAgree with everything “Pete” says
My family has been renting a
Joseph Hunting Valley OhioMy family has been renting a month to 2 months every year since 1992 in Edgartown … We are done with all the additional fees and taxes along with insane asking prices for rentals now…. We are headed to south of France for a 1/3 less than what it would have cost on MVY.
I have lost 3 weeks so far
Michael edgartownI have lost 3 weeks so far this summer.....and I rent cheap.....my friends mentioned the ferry, and just lousy weather, and food costs to go out to eat...
I grew up spending time on
Elizabeth Glen Ridge, NJI grew up spending time on the island -- since I was 5. Once my sons were born, we rented for 25 years. I lived and worked there the fall/winter of 2016/17. After last summer, we won't be back during the summer for a long time. For what we paid for one week we could have gone to Europe, and the house was modest. Not only that: because we go so often and have our favorite restaurants and venues, we could see how much more was being charged for the same experience we've had all along. That includes the supermarkets, the liquor stores, the ice cream shops. I understand things have to be more expensive on island for a number of reasons, but last summer was ludicrous.
If you have the option of
MWG EDGIf you have the option of going to Europe over Martha's Vineyard you should definitely take it. Easy choice there.
The comments all have made
CJ EdgartownThe comments all have made are right - the restaurants and bars are gouging. Their prices are higher than NYC, and they have limited the menu items too much. I think they are killing the golden goose. Also, cleaning cost is outrageous. Too many people think they can charge whatever and get away with it.
Could be, but island
Mark VHCould be, but island restaurants have only 16-20 weeks to generate sufficient revenue to meet their full-year financial obligations (e.g. rent if they’re only operating seasonally). Restaurants in NYC are open year-round.
This is not surprising at all
tom BostonThis is not surprising at all to me. I have heard nothing but complaints about the obscene rental tax now charged. And how have many to he towns reacted? By raising the tax even further. Many complain about the Vineyard only being for the wealthy but the STR tax helps drive this.
As I have posted before, I would be quite upset if I owned a restaurant on MV. For many households it's a zero sum game. If you now are required to pay say $1200 in tax on a two week rental (with another family), the restaurants and other small businesses can't help but take a hit. It's economics 101.
The restaurants should be in
Jason EdgartownThe restaurants should be in panic mode if I were them…. This could all have been avoided.
Every time I read the local paper all I read is the anti tourist rhetoric… islanders need to wake up…
We start with a ridiculous room tax in rentals
Now we want to stop STR all together??? What are you thinking??
Who is going pay for the police/fire/trade jo
Forget about affordable housing there will be plenty available this summer and moving forward.
Well, we fixed the affordable
Jean OBWell, we fixed the affordable housing problem, but there will be no jobs. I told everyone this would happen with the crazy rental tax. Then some towns want to ban rentals??? What are people thinking??? Hello??
We need tourists people!
Where are all the people who
Robert EdgartownWhere are all the people who want to ban Short term rentals now? Where are all the affordable housing folks???
Crickets… we need tourists to support our economy.
I told a few friends awhile
Richard EdgartownI told a few friends awhile back this would happen. Islanders are so quick to want to ban everything and then tax the tourists. Well here you go!
No worries plenty of affordable housing now…
I started visiting MV in
Dave CTI started visiting MV in college in the early 90s as a college student. I spent a few summers renting with friends and working at restaurants or driving a cab. The vibe of the island was incredible. As the years passed I continued to visit for a week every summer and eventually brought my own family out there to experience the wonder. We rented up island, had access to every great beach and looked forward every year to our happy place. But over the past ten years my rental almost doubled and the island became overrun with pretentious elites with money to burn and no sense of community and decency that was the hallmark of Vineyard culture. We finally capitulated and moved on to other vacation destinations. The Vineyard will always be where my soul was happiest but sadly it has lost its heart.
I agree 100%, and I grew up
MM Lock OB and Fl.I agree 100%, and I grew up there with alot ot relatives.
My widowed daughter seeks
Beth Ruffner Daughter currently lives in EdgartownMy widowed daughter seeks housing for the short summer. Her lease expires on June 1. Her 2 children attend the wonderful Edgartown School and she is employed full time, and has guaranteed income as well. The stress of the finding housing is extremely overwhelming. You may contact MV Community Services if you have an opening.
This island has lost so much
Hugo Palmer VAThis island has lost so much of its soul these past 20-30 years. It’s heartbreaking to see something so special become overrun by people who see it as a luxury destination and not the quirky and unspoiled natural wonder it once was.
Born and raised on the Island
MM LocK OB and FLBorn and raised on the Island, and we had such a wonderful youth here in this quaint beautiful place.
All the changes, fees, and expenses are incredibly high. Miss the old days, as a lot of people are now realizing!!!
It’s so interesting to read
Kate NHIt’s so interesting to read these comments and have the same story as many posters. We’ve rented for a week in July in OB for the last 25 years and last summer was the first time we did not go to the Vineyard. Although we’re all sad and miss it, it’s not the same as it used to be and the cost to go for a week is now completely out of our budget. We aren’t returning this summer either and have had to find new summer vacation spots.
I agree with the comments…
Jenn OBI agree with the comments… taxes in rentals then they want to ban rentals??? People wake up!! Now we will have plenty of affordable housing!
I agree with most statements.
Bill BostonI agree with most statements. The rental tax was a huge mistakes the Towns love it, however the cash stream will no longer be there. Where will they make up for the shortfall? Let’s face it with all the pensions the Towns are dishing out they need the money…I was reading towns want to ban home rentals? Are you kidding me??For affordable housing? There will be no jobs without tourists and summer rentals, that’s a fact. I would bet 75% of jobs on the island are tourist based in some way.
The island was smart enough
CJ EdgartownThe island was smart enough to zone out large Hotel chains, but if you curtail short term rentals, there is no place for people to stay. You have basically killed the tourist industry on the Vineyard.
In regard to restaurants, their prices were not prohibitive five years ago, and at that time they only had five months to operate. However, the percentage increase on their menus is horrendous. If they do not lower their prices, they are going to find that they have no business.
All the Towns wanting to ban
Michele EdgartownAll the Towns wanting to ban rentals better re-think that. We need tourists and short term rentals. Islanders should understand without tourists we want have jobs… we will not need landscapers, painters., plumbers etc…
We are a tourist based economy.
Yes. We need to appeal the short term rental tax. That is outrageous. 8-16%??? Crazy!
All I hear is we need more Affordable housing??? Not to worry now….
West Tisbury residents set
Michael edgartownWest Tisbury residents set LAWS for non residents about renting their homes.. rules for them to obey by, for their private property homes who want to rent them out...
they also imposed fines for those private property owners, who dont obey them.....
I ask a legal mind, how can they make rules/laws aginsta other people? and set fines on top of that if you dont obey them?......I find this very disturbing
What did every one thing was
TS Taylor Oak bluffsWhat did every one thing was going to happen when the minimum wage was raised. the business owner's aren't going to take the hit. pass the cost on to the consumers. Same with cleaning costs.
31 letters, all making the
Barbara Manhattan/ Edgartown31 letters, all making the same point: New fees and taxes are killing the rental market, while over-priced restaurants are adding to the burden of a family that wants to vacation on the island. Given that Martha's Vineyard relies on a tourist economy, isn't it time for an island-wide discussion of what we should and shouldn't be doing to keep Martha's Vineyard an attractive and affordable destination?
In my observation, the
Helen Benham ChilmarkIn my observation, the “government “ on the island lacks leadership and addresses issues that arise with single focus without considering big picture or long term repercussions of decisions made. The model of selectmen each running their own towns worked for a long time just doesn’t work anymore. I’ve been going to the Vineyard for 50 years and the population has grown and changed radically yet the approach to problem solving has not. It won’t surprise me if more day tourists come while renters see vacations elsewhere.
I have spent most summers on
Tom VHI have spent most summers on the island for over 50 years. Never has the anti tourist sentiment been so high. This is a shame. The island depends on tourism to survive. So many complaints about the high price of restaurants. How does anybody expect them to make money with only a 3 month season? Of course the prices are high. Do you expect to go out to eat with a view of the ocean in a seasonal town and expect a bargain? Then when restaurants want to open in the off season they are met with so much resistance and red tape AND cant even sell out at 50% capacity. Give me a break. Embrace the restaurants that charge high prices so they can stay in existence and employ local people and teenagers for their first jobs. I can only imagine that restaurant owners are not getting rich here. Happens in every seasonal community. If only tourists can afford to go out to eat in the summer then let’s not complain, tourists are needed here, and they need to eat.
We love MV but it's becoming
Alex BostonWe love MV but it's becoming too much of a tussle. Ferry reservations complications, taxes, expensive low-end food,Select Boards clamping down on hosting family oriented parties on the public beaches along with the rental costs is enough to walk away from it.Virginia Beach, VA never fully economically recovered from imposing an assortment of restrictions that drove businesses away. Hopefully MV's leadership will hear the canary in the coal mine before it's too late.
Alex,
New Englander ProvidenceAlex,
It already is too late. The quirky, affordable and relaxing summer oasis is long gone.
We have owned our home for 30
MarieWe have owned our home for 30 years, we don’t rent. We used to eat out a lot but now it is very expensive and definitely not worth it. We are lucky enough to be able to stock up at local supermarkets and liquor stores before every trip. We enjoy making gourmet meals and sitting on the deck.
The beach situation has been an on going problem. Some days we can’t find a parking spot. Ferry is stressful every year. This year they outdid themselves with a disaster.
It feels like we could be anywhere on vacation since we don’t go into town as much. There are a lot of taxes involved with selling but we have been looking for a better place.
Like so many others, we've
Mm CTLike so many others, we've loved for the Vineyard, with its authentic charm, for decades. It is a shame that for short term financial gain, the long-term implications are being ignored. Remember... we can take our vacation dollars elsewhere...with no notice. But those of you who live here full-time will be without nurses and teachers and all the other middle class honest and hardworking folks who are essential to the ongoing viability of the island. You will have a disaster that will take a great deal of time to fix, as those great folks will have found new and more beneficial locales to live and work. Very unfortunate...
if you would like the new
Michael edgartownif you would like the new rules for private property owners so you are in compliance with your neighbors, in West Tisbury, check out you rules, and click on the link
https://www.westtisbury-ma.gov/short-term-rental-committee
Directly below all these
Gordon M Melbourne, AustraliaDirectly below all these comments about how MV is on the path to ruination due to rising costs is an ad for a relatively modest home priced at $7 million. The ferry sailed…decades ago.
There are just too many
John VHThere are just too many people here. Even the road system is crowded past the point of functionality. It has been that way in the summer for some time now, and is getting tho be the case year 'round. Sadly, that won't change even if there are some rental vacancies.
Let me start this off with
FifiLet me start this off with the obligatory "I've been coming __ many of years". Really not sure what that proves except that you have some sort of credibility? The indigenous people of Noepe win that hands down.
Believe it or not. There was a time when the economy didn't have to rely solely on tourism. There was a time where it wasn't expected that those who lived on the island didn't have to kiss a tourist's behind. There was fishing, farming, and because the cost of living wasn't so bloody expensive. The teachers, the policemen, the nurses that trades people could support themselves just off island. Things started to really perk up when the Clintons started summering on the island. Then the Obamas. There were always famous people as well, however, they were fairly low-key. It became a status symbol to wear that black dog t-shirt in Park slope, or in Fort Greene.
People got greedy. That's what happened.
And now they will reap what they sowed. And it is very sad
It’s interesting that there
MJ EdgartownIt’s interesting that there are so many comments about the problem and little about the potential solutions. Tourism should be encouraged with reasonable constraints to avoid the congestion and overtaxing of the system. Numerous events (Beach Road, Marathon) were cancelled this year and others moved to new dates (Wine Festival) that make it hard for tourist to find compelling reasons to come back. My suggestion here is consistency and the people will come back for it year in year out.
What the island needs is a strong island wide Chamber of Commerce that works with the communities to help the island thrive. Think playbook for how large events can exist, think marketing events like a restaurant week or taste of the vineyard, think creative ways to provide affordable housing/summer housing. The recent article in Travel & Leisure was a great step no where do we go. I could go on but I hope others have ideas to throw on the table. We should work together to make the island a thriving tourist destination that still takes care of its own.
Not sure MV tourism has an
Gina Menemsha:NYCNot sure MV tourism has an event based problem but more of an expensive based problem
Plenty of tourists attractions ie Farmers Markets Art Galleries etc but that doesn’t fix the lack of parking spaces @ the wonderful Land Bank trails or eating out costs not sure how to fix those issues
All the geniuses with their
Charlie Callahan So Boston/EdgartownAll the geniuses with their solutions. It's greed that's killing this island. If I hadn't bought something small and reasonably priced forty years ago,I would never come here now and get fleeced.It costs a young family over $100 for burgers and fries for four people,If they are lucky, some places are stiffing you for $35 for a burger and fries.
So sad to read, the truth
Islander FranceSo sad to read, the truth hurts. I have long stopped going out to eat exorbitantly priced food and paying sky high prices at supermarkets, gas stations, and other service providers…there are so many other places that have so much more to offer and that have integrity.
To remove the option of
Sara Piazza EdgartownTo remove the option of Islanders renting their homes or parts of their homes, thereby removing the option of keeping their homes, is unconscionable. This is the way our economy has worked for many years on the island and to pull the rug out now would be criminal. What are you trying to do, drive out the last of the locals? The local community is hanging by a thread as it is. Remove our ability to maintain and keep our own homes will be the last nail in the coffin and the island will become exclusively an island of wealthy summer residents. And by the way, if you want to see how tourists and visitors should be treated, go and spend some time in Ireland, where visitors are treated like royalty and where strangers smile and say hello to you on the streets.
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