Future Demand for Second Homes
April 16th, 2009 at 09:44am Tom
The number of vacation homes sold nationwide fell 30 percent to 740,000 in 2007, from a record 1.07 million in 2006. The numbers for 2008 are not ready yet, and I suspect they will be lower. But the demographics are looking pretty good for the second home segment over the next decade.
“The long-term underlying demand is favorable for vacation homes because of the large number of middle-aged, middle-income Americans [who are the primary buyers of such properties],” says Molony. “In recent years, this market has been driven by the Baby Boomers, but there are two even larger population groups coming up right behind them. Those younger segments will continue to fuel this market for the next 10 years.”
“If you have the resources and are confident about your economic future, you’re not going to find a better market than we’ve got today in terms of affordability and raw buying power,” says Molony. “It doesn’t get much better than this.”
Do you agree with the National Association of Realtors’ optimism about future demand for second homes?
–Editor’s note: Tom Harris is the principal of Colorado Lifestyle Real Estate, which connects second home buyers and sellers with the top Realtors in Colorado resort towns. He blogs about Colorado’s real estate market for CH&L and can be reached at Tom@ColoradoLifestyleRealEstate.com.
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