With more people spending time at home and attractive mortgage rates, the housing market has been buzzing with home buyers seeking to find new homes. While there may be many buyers in the market, not all of them are trying to find their main accommodation. Second homes, homes that are bought, not for the purpose of year-round living, but to be used as investment/rental properties or vacation homes, have gained some traction in the housing market. According to the latest National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index, a report based on monthly surveys of NAHB members to take the pulse of the single-family housing market, second homes currently account for 15% of new home sales. For this latest month’s survey, NAHB and Wells Fargo chose to focus their findings on single-family homes starting in 2020.
“According to NAHB’s analysis of data from the Census Bureau’s American Community Survey reported in a late 2020 post, there were 7.5 million second homes in the U.S. in 2018,” wrote Eye On Housing’s Paul Emrath in an article analyzing the Housing Market Index. “At that time, this accounted for 5.5% of all homes in the country.”
The disproportion further highlights the position that second homes currently have in the market.