What’s motivating second home buyers?

Location is the most important factor in the purchasing decision for second homeowners (67%) and aspiring homeowners (70%) when buying a second home.

64% of Buyers Desire to Travel Four Hours or Less to Their Second Home. 71% of buyers plan to visit their second home less than 7x per year.

Pacaso, a technology-enabled real estate marketplace that helps people buy and co-own a luxury second home, released its 2022 Second Home Attitude Report, to better understand what’s motivating second home buyers. Savanta, a trusted research firm, gathered the quantitative survey-driven data to identify trends around existing and aspiring second homeowner preferences. The research was conducted amongst households with incomes equivalent to $150,000 or greater per year across the United States.

“The newfound flexibility many Americans are afforded has made demand for second homeownership stronger than ever as people look to put quality of life front-and-center in their lifestyle,” said Pacaso CEO and Co-Founder Austin Allison. “When you buy a second home, you’re unlocking a new chapter in life, becoming a part of the fabric of the community, and above all else, finding a special place to spend time with friends and family.”

According to the Savanta data analyzed by Pacaso’s research team, location, price, and home size are the top three most important considerations to buyers in the purchasing decision of a second home. An inability to afford the second home they want is holding non-second homeowners (66%) back. Of the people who desire to own a second home but don’t already, nearly half (42%) show concern about the associated costs and more than one-third (35%) are hesitant about the effort to maintain a second home.

Commute and Transportation

Nearly two-thirds of people (64%) commute or expect to commute to their second home in four hours or less and the majority (87%) want to drive over other modes of transportation like air (34%) or train (29%).

Second Home Destination Locations

Non-second homeowners (61%) prefer to be by the water, ranking a beach house (42%) at the top of their list, followed by lake (19%) and mountain (14%). 91% of existing second homeowners own domestically and 15% own internationally. Nearly three in ten owners have beach houses.

“Both existing second homeowners and aspiring owners prefer domestic second homes because they are more accessible, allowing them to visit more often. These owners and aspiring owners are attracted to a second home to share with their family and friends so they can live life to the fullest,” said Savanta Director Research, Insights and Consulting, Amit Sahni.

Second Home Visit Frequency and Duration of Stays

Non-owners and existing owners feel nearly the same about the number of trips they make and expect to make to their second home each year with only 29% of people planning to visit their second home more than seven times per year. Second homeowners (62%) are generally more likely to spend two or three plus weeks in their home, while people who desire to own a second home are more likely to spend one week or less on vacation (58%).

“Our data shows that only 29% of people plan to visit their second home, more than 7x per year. This stat further cements co-ownership as a more efficient and sustainable option, as buyers have the power to own only what they will use. Owning 100% of a home you barely use is wasteful and antiquated,” continued Allison.