Monday, March 22, 2010

Power of the free market in East Hampton Village

East Hampton Village owns 13 beach houses right on the Atlantic Ocean. For a long time these were rented out to a core group of people who were able to re-rent each year. This year the Village decided to auction off the rentals. covered the auction.

Here's the math:

Expected rent $516,000 (4% annual increase included)
Actual rent from auction $827,000

60% more rental income

13 units for rent
24 bidders

Imagine if this auction had been handled on eBay?