Who are the people buying second homes these days? A lot of different people, of different ages, races, backgrounds, and for different reasons.
Along with the healthy real estate market across the nation, second home ownership is increasingly popular both for lifestyle and investment reasons.
Baby boomers by far are the largest group. As they approach retirement, and have money to invest, they diversify their holdings in savings, stock market, and real estate. While many second homes are vacation homes, boomers are also buying investment properties. A surprising number of second home owners own more than two properties.
Minority ownership is increasing among second home buyers and investment owners. Minority buyers account for 11 percent of vacation home owners.
The National Association of Realtors recently released a report on the statistics concerning people who own more than one property. There appears to be more of a crossover between typical vacation home ownership and using real estate as an investment. The typical second home owner is 59 years old, has an income of $120,600, and desires being close to an ocean, river, or lake. Being in an area with recreational attractions is important, and it is expected that as boomers age, the areas that will benefit from second home ownership will be areas that feature activities that appeal to them.
Vacation home owners report an interest in the appreciation value of their property, and many intend to sell within 10 years, or buy another property. Investment property owners expectations are more closely linked to the rent that the property can generate, rather than appreciation rates of the property itself.
The report can be ordered from the National Association of Realtors for $50 for members, or $125 for non members.