Second home buyers currently have their eyes on one thing: luxury. According to Pacaso’s Second Home Market Analysis, sales of luxury second home properties have increased significantly since the beginning of the pandemic — and this demand shows signs of lasting despite the larger market dynamics.
As flexible work arrangements allow more buyers to pursue second homeownership (including luxury homes), it’s vital to understand what is important to them. To help agents advise their clients, Pacaso compiled its 2022 Second Home Attitude Report in September 2022. It looks at the trends, preferences, and attitudes that both current second homeowners and buyers have when deciding to buy a second home.
Here are the biggest takeaways.
The saying “Location, location, location” holds true with luxury second homes. Pacaso’s report found that 70% of aspiring second home buyers view the location as the top factor in their buying decision, followed closely by price (66%) and home size (48%). These factors are top of mind for 67% of existing second home owners as well. Current second homeowners, however, are more likely to prioritize the appeal of a neighborhood compared to aspiring second home buyers (45% versus 30%).
Pacaso’s report found that owners and buyers prefer a home that they can travel to easily. Sixty-four percent of those surveyed have (or expect) a commute to their second home of four hours or less. Current second homeowners, however, are more likely to have slightly longer commutes — 43% of owners drive more than four hours to their homes. Ownership status aside, an overwhelming 87% of second homeowners and buyers want to drive their second home over other forms of transportation like flying or train.
Both second homeowners and buyers feel nearly the same about the number of trips they make (or expect to make) to their second home — 71% of those surveyed plan to visit their second home less than seven times a year. Current second homeowners instead prefer infrequent, longer vacations. In the survey, 67% spend two or three-plus weeks in their vacation home. Aspiring second homeowners, however, are more likely to spend one week or less on vacation (58%). Ownership status aside, a combined 65% of owners and buyers spend (or expect to spend) two weeks or fewer for each stay.
With the shift toward working from home, buyers are looking to balance work and life outside of their primary residence. In Pacaso’s report, 61% of prospective buyers want their second home to be near the water (42% beach and 19% lake), while only 11% want a second home in the city. Furthermore, about nine in ten of those surveyed own (or prefer to own) their second home within the U.S.
The numbers show that demand for luxury properties remains strong, and buyers have clear expectations for their second home — in particular, location, size, and the amount of time spent on vacation. A co-ownership model like Pacaso could be the best solution for your clients. With a select number of buyers coming together to co-own a luxury home, Pacaso offers more opportunities for maximized space, preferred destinations and selecting the right amount of time and ownership for one’s needs.