Vacation Homes Are Still Popular
Many aspects of our lives have changed because of the pandemic. Some of these changes are merely products of the times and go by the wayside once conditions adjust. For instance, in the very beginning hoarding toilet paper seemed like a reasonable thing to do for many. Over a year later, nobody thinks that hoarding toilet paper is a reasonable course of action no matter how bad the pandemic might be. Some changes, however, seem to have longer legs and might stick around for much longer. For instance, many employers are not returning entirely to in-office work arrangements. It seems remote work will stick around long after the pandemic is merely a thing written about in history books. Another trend that seems to have staying power is an increased demand for vacation homes. Even though the pandemic is receding, the demand to buy a vacation home is still high.
Buying a Vacation Home Increased in Popularity in the Pandemic
Any way you slice it, the demand to be a vacation home increased dramatically during the pandemic. Popular vacation destinations all around the country from Cape Cod to Lake Tahoe saw their real estate markets go through the roof. Homeowners wanted to have second homes in remote locations known for getting away.
The logic behind the increase in demand makes a lot of sense. Coronavirus restrictions changed how Americans could recreate and travel. Local restrictions meant that many Americans did not have access to the things they loved to do the most in the places that they lived. Restaurants were shuttered. Concerts were canceled. Sporting events were done without fans in the stands. The very reasons why we live in the places we live were put on hold. In turn, the very things that keep us where we are no longer exist. At the same time, changes to airlines and hotels meant all of our traditional vacation plans were in flux. Americans had to find new ways of entertaining ourselves and new ways to vacation.
Aside from that, many of us found ourselves working from home, working out at home, and even teaching our kids from home. The day-to-day obligations of life were no longer bound to a particular geographic location. As long as we had a good internet connection, we could handle any of our responsibilities nearly anywhere.
All of this led many Americans to consider buying a vacation home. It offered a way of breaking up the monotony and injecting some variety into the pandemic doldrums. Typically, one of the big reservations that homeowners have when considering buying a second home is how much time they will spend there. Is it really worth buying a vacation property if you are not going to enjoy it? The pandemic created a window of time where it was possible for millions of people to guarantee that they could spend a lot of time at their vacation home. This made it much easier for many homeowners to pull the trigger and buy that second property.
Demand For Vacation Homes Still High
Now that the pandemic is far less restrictive to our lives one might have expected the demand to subside. After all, many Americans are traveling again. Restaurants have opened back up. Sports teams have fans in the stands again. Even Disneyland has reopened. Would homeowners still desire a vacation property now that we can resume our traditional vacation lives?
The answer is a resounding yes. There is still demand to purchase a vacation home. According to the National Association of Realtors demand to buy a second home increased nearly 6% in 2021. These numbers are less than last year’s numbers. In 2020, second home sales increased over 16% from the previous year. While sales are not increasing as much as last year, they are still increasing. Furthermore, some of the slowing sales might have to do with the real estate market as a whole rather than merely the demand for vacation properties. The inventory of homes available to purchase is incredibly small, which is causing home sales to decline from last year’s number in nearly every market. This is true of all homes and not just second homes.
But why is demand still high? There are probably a couple of different drivers behind today’s demand for vacation homes. First, many of us are still working remotely. As a result, we are able to spend more time at our second residences. Again, the biggest hesitancy to buying a vacation property is whether or not the buyer thinks they will be able to spend enough time there. Because not everyone is going back to their offices and cubicles, there is a large number of people who have the flexibility to work in exotic locales. Second, mortgage rates are still hovering near historic lows. As long as mortgage rates remain low, home buyers recognize that buying a property now is a good deal. Rates will not be this good forever, so home buyers want to take advantage while they have the chance.
Final Thoughts
How much staying power demand to buy a vacation home really has is something that we will not be able to determine until down the road. While it appears that buying vacation properties is not just a fad, it is always possible that we start to see a selloff of second homes. As home prices continue to shoot through the roof on the way to the moon, it is possible that some will want to cash in on last year’s purchases. After all, buying a vacation home, using it for a long time, and then flipping it for profit is not a bad deal. However, it is too early to tell how stable the demand will be and for how long. The bottom line is that the pandemic made second homes more popular and as of the time of this article, their popularity does not seem to be waning.
If you have been thinking of buying a second home and want to see what options you have available, contact us. The team at Streamline Realty would love to help you find your seaside escape or forest retreat. On the other hand, if you want to take advantage of today’s sellers market and sell your vacation home, you should also contact us. Either way, the professionals at Streamline Realty are here to help you take advantage of this pandemic trend.
