Vacation Home Market

  • In 2020, there were over 40 million American householdscomprised of individuals 50 and older who owned their main residence, of which 15 percent, or 6.6 million households also owned a vacation home
  • As of 2020 about 10% of the roughly 3,000 counties across the country were vacation home counties where at least 20% of the housing stock is classified as vacant homes for seasonal, occasional or recreational use by their owner. Vacation home sales in these counties rose by nearly 17% in 2020 and 33% in 2021.
  • 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 in 2000
  • By 2030 nearly 72 MillionĀ US Baby Boomers will be age 65 or older and represent 20% of the total US population according to AARP