How Second-Home Markets are Performing
In 2024, second-home sales are showing unexpected growth despite elevated prices and interest rates, particularly in diverse markets like coastal communities, wine country, and desert retreats. This resurgence follows a surge in demand during the pandemic, fueled by favorable interest rates and a shift toward remote work. Currently, the affluent baby boomer demographic is significantly influencing this trend, as they account for over 52% of U.S. wealth and are increasingly purchasing second homes either for personal enjoyment or as part of wealth transfer strategies to younger generations. This nuanced understanding of boomers—divided into Achievers, Innovators, and Equalers—highlights differing motivations among those born in the 1940s, 1950s, and 1960s regarding second-home investments.
The appeal of second homes to boomers centers on family legacy, with many seeking properties that serve as gathering places for loved ones. Surveys indicate that a substantial majority of those aged 55 and older value shared family memories as their most important legacy, which fuels both second-home and primary-home purchases. As economic conditions stabilize and interest rates potentially decline, there is a promising outlook for continued momentum in second-home sales. For professionals in the home building and development industries, understanding these demographic trends and aligning housing types and community elements with buyer preferences can enhance market positioning and maximize project opportunities.
