Luxury second home sales increased nearly 25% year-over-year during the second quarter of 2022, according to Pacaso’s Q2 Second Home Market Analysis. And compared to the first quarter of 2020, second home sales were up 235%.
While the market has shifted, people continue to look for ways to elevate their lifestyle—and purchasing a second property is one option of doing so. Pacaso’s Second Home Attitude Report shows that there is still demand for second homes.
The newfound flexibility many Americans are afforded has made demand for second homeownership stronger than ever as people look to put quality of life front-and-center in their lifestyle. When you buy a second home, you’re unlocking a new chapter in life, becoming a part of the fabric of the community, and above all else, finding a special place to spend time with friends and family.
Second Home Attitude Report
For the 2022 Second Home Attitude Report, trusted research firm Savanta gathered data around second homeowner preferences from U.S. households with incomes of $150,000 or greater per year.
Pacaso’s research team then analyzed the data to determine what is most important to those who currently own—or aim to purchase—a second home. Here are the key findings.
Location and Commute Times Matter
The location of a home is the top consideration for existing second home owners (67%) and those who intend to purchase a second home (70%).
When buying a second home, the location was considered more important than the cost of the property, size of the home, neighborhood appeal, travel time, associated costs and maintenance efforts.
The vast majority (91%) of second homeowners own domestically, with just 15% owning internationally.
And domestic ownership isn’t enough—most second homeowners (87%) want to be able to drive to their second home, with 64% stating they’d like the drive to be four hours or less. Drivability allows homeowners to go to their second home for a quick weekend trip or a longer impromptu stay, depending on their schedules.
Both existing second homeowners and aspiring owners prefer domestic second homes because they are more accessible, allowing them to visit more often. These owners and aspiring owners are attracted to a second home to share with their family and friends so they can live life to the fullest.
Destination Locations: Water is a Top Choice
Second homes offer a break from the hustle and bustle of everyday life, which is why they are often located in vacation destinations.
Most people (61%) aspiring to own a second home want to be near the water, with 42% stating a beach house is their first choice and 19% preferring to be near a lake. Mountain destinations round out the top three spots, with 14% stating they’d like a mountain home.
Second Home Visits
Even when homeowners are in close proximity to their second home, most don’t make use of the property every month. Of the second homeowners surveyed, 71% plan to visit less than seven times a year. The property is either left vacant or rented out for the rest of the year.
Our data shows that only 29% of people plan to visit their second home, more than 7x per year. This stat further cements co-ownership as a more efficient and sustainable option, as buyers have the power to own only what they will use. Owning 100% of a home you barely use is wasteful and antiquated.
Takeaways for Real Estate Agents
Although the market has slowed, there is still demand for luxury and second homes.
Of course, many who aspire to own a second home are holding back due to affordability (66%), concern about associated costs (42%) and maintenance concerns (35%).
If you are an agent in a vacation destination, work with your clients to help them understand their options, whether they are looking for a primary or secondary residence.