A Surge at the Shore

by Carly Murray | Sep 12, 2024
A Surge at the Shore
The economy is often at the forefront of many Americans’ minds, especially while living amid daily challenges like a pandemic’s lingering effects and a contentious political climate. It is difficult to ignore the national, exponentially increased cost of living found in everything from the housing market to groceries; on a local level, New Jersey residents have also found their customary visits to the Jersey Shore have changed as a result of widespread inflation.

Inflation’s domino effect is noticeable among each town and for any visitor demographic, but is particularly costly for family vacations that include children. A trip to the Shore often revolves around a family’s long-established traditions shared among generations, as parents and grandparents who have visited a beloved ocean town since their own childhoods strive to pass that lifelong affinity along to younger generations, but are no longer able to provide the full experience at the anticipated expense. Even a day trip likely includes expenses like parking, gas, dining, snacks, drinks, a beach pass and amusement attractions—at the least.

Mike, who wished to only provide his first name, works in Ventnor and has owned property there since 1979. He remarks that costs since then have increased “at least 20 times over, changing progressively going up and up.” Still, he wants to share the peaceful and family-friendly atmosphere with his loved ones.

“We actually go to Ocean City. It's more family-oriented,” he begins. “But you go there, get the pizza on the Boardwalk, and play the games …. My grandson got an airbrushed hat last year, I think it was $25. My other grandson wanted the same hat this year—it was $28. And how do you tell your grandkid no? It's too expensive for a family. I'm by myself, I'm not married, so it's a little easier. If I was with my children when they were young, I would never be able to afford it here.”

Voorhees resident Joe Adams, who is vice president of sales and purchasing for a food company and owns a Shore home in Ocean City, has an industry insider’s perspective on inflation within the food industry. He explains that the trickle-down effect begins with the cost of ingredients, and then manifests in everything from a slice of pizza on the Boardwalk to fine dining at a restaurant.

“For about two years after COVID started to lift, until it finally went away, the cost of food dramatically increased because there was price increase after price increase inside the food industry. And the reason why was because, number one, the demand was really high and the supply was limited,” he says.

Adams remarks that the pandemic caused people to miss going out so much that the cost has not hindered them. Initially, money was saved during lockdown—excluding home improvement projects—and the cost was understandable during the country’s recovery. Expenses still on the rise years later is less digestible for many Americans, but not a dealbreaker.

“People were so emotionally affected by COVID, they refused to change their lifestyles to match their income levels. They're still traveling, vacationing, and going down the Shore…[but] they're not going out to eat as often,” he continues. “Instead of going out 10 times, families are going out five times. They're spending the same amount of money, because the inflation has affected the food costs so dramatically.”

Factoring in a place to stay and planning for multiple days of meals and activities, many families have considered even more budget cuts. In some instances, locals are partial to staying at a Shore house rather than a hotel, turning to the internet and vacation property rental services. In this system of a property owner determining their price, many have chosen to reflect these higher costs without offering extra incentives.

“As far as homeowners renting out properties—I've seen it—they got very greedy because they saw it was in high demand. And this is my personal [opinion]: they're taking advantage. Before COVID, you would see around $5,000 for the month. Well, now they're wanting $9,000-10,000—almost double,” Mike says.

Unfortunately, even while prices escalate, the quality of service may remain the same. It is essential for renters to be cognizant of a quality experience that justifies such a cost: After all, a vacation that requires absorbing the stress of not having all the amenities and offerings a family needs once they arrive at a vacation home that delivers even less than promised is counterproductive. The modern era, however, does mean more options.

“Supply and demand has affected the amount of visitors more so than inflation. Margate is a very desirable place to be in-season, which has drastically increased the number of visitors,” says Gerard Rosenberger, owner of Marketplace Realty. “It feels like every year there are more people here at any given time. The addition of weekly and short-term options, through both realtors and third-party websites … has created new opportunities for families to obtain rentals at a more manageable total price or [for] owners to help offset the cost of their second home by renting for a couple of weeks.”

Adam and Charlotte Erace own two properties for hosting guests, as well as a stellar Airbnb rating based on the hospitality and experience they provide. Both properties—one by the beach in Wildwood and the other in Lower Township—have personal pools. The pools are a unique draw providing an elevated experience, and the Eraces also offer high-quality amenities, local-inspired gifts and signature handcrafted soaps.

“[With] so many rentals down here, traditionally guests have to bring their own linens and towels. It's this very old-school approach that hasn't really innovated very much,” Adam observes. “We provide all that. Our approach was to charge at the top of the market, but also provide services and amenities that were to measure it with those prices; charging at the high end, but providing an experience that’s also high.”

Charlotte maintains a unique perspective of the housing market as a realtor in Cape May County. To compensate for the cost of living, she explains that both prospective and current property owners are finding it an investment to rent their homes to vacationers. While inflation is a pain point in almost every part of the country, island living already has a luxury connotation that drives skyrocketing prices even more.

“I definitely sense that buyers feel that they are paying a premium for island living. I think what is interesting is that you hear so much about high interest rates and low inventory, but on the island we're always going to experience low inventory because these are islands, and you can't necessarily make more of an island,” ,” she says. “This is why prices are often going to be at a premium: It's a secondary market, it's a vacation market, it's a more luxury, exclusive living situation. You're buying into a lifestyle down here.”

Despite the frustration of nationwide inflation settling in locally, residents and visiting shore-goers are unlikely to tear themselves away from their seaside escapes, with fond memories, close proximity to family and an ambiance difficult to find anywhere else chief among their reasons for prioritizing the joy of a Shore trip over its rising cost. As the summer comes to an end, it is difficult to predict next year’s outlook—but one thing is for sure: The beaches will remain populated regardless.

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Author: Carly Murray

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