Vacation Home Market

• In 2007, there were over 40 million American households comprised of individuals 50 and older who owned their main residence, of which 15 percent, or 6.6 million households also owned a vacation home
• Most vacation homeowners either inherited their homes or purchased them with cash. Vacation home mortgage originations comprised less than 5 percent of overall mortgage market originations. In aggregate, there is more than $125 billion in outstanding mortgage debt on vacation homes
• Most vacation homeowners make limited use of their homes with 50% of consumers spending 2 weeks or less and slightly more than 65% spending 4 weeks or less per year in their home
• High net worth individuals invest in vacation homes which can potentially deliver a positive return on their investment through both rental income and capital appreciation, as well as give them a second home option when they go on vacation to a popular resort destination
• The US State Department estimates that between 600,000 to 1,000,000 US Citizens live in Mexico, up from 200,000 ten years ago
• Seventy six million US Baby Boomers are expected to retire within the next 20 years according to AARP