BAM Key Details:
- Pacaso just released its 2023 Second Home Attitude Report, based on research involving over 400 high net worth individuals, on the motivations and concerns of second home buyers across the U.S.
- Nearly six out of 10 (57%) aspiring second homeowners believe owning or co-owning a second home would get their family to spend more time with them. And 81% would rather spend money on a second home than leave a larger inheritance.
- A clear majority of respondents would rather road-trip it than buy a plane ticket to their second home, with 70% showing a preference for driving or flying.
Most likely, no one in your family will say this out loud, “I’m using you for your second home” (especially if they’re in the will).
To be fair, it might just be easier to hang out in a relative’s vacation home than in the place they live in for most of the year. People are generally in a better mood when they’re on vacation.
It’s a whole different vibe. Spending time with relatives you don’t otherwise get to see and doing things you don’t have time for in your regular workday life make every day feel like a holiday.
And if your second home is just a road trip away, it’s like two vacations in one (says the writer whose kids are well past the hair-pulling stage).
Read on for the biggest takeaways from the latest report.
The 2023 Second Home Attitude Report
Applied Research West (ARW) conducted a survey targeting more than 400 high net worth individuals across the U.S. with an annual income of $250,000 or more. And the trends it revealed among existing and aspiring second homeowners show clear benefits for those wanting to spend more time with family. That accounts for 62% of respondents, who spend a couple weeks a year or less vacationing with extended family and would like to increase the frequency of those visits.
As mentioned above, nearly six out of ten (57%) aspiring vacation homeowners think their family would make more time for them each year if they owned or co-owned a second home.
So, it’s not all that surprising that 81% of respondents would rather spend money on a second home today than save that money to leave a larger inheritance.
Also, a full seven out of ten (70%) would rather be able to drive to their second home than have to buy a plane ticket every time they want to spend time there.
Prospective and current second homeowners prioritize the freedom to enjoy life while they’re young and spend more time with family, rather than saving excessively for retirement or leaving behind a large inheritance. The memories people create in a second home are an investment that holds far greater value than mere money. With Pacaso, you can enjoy the best of both worlds: creating cherished memories and having confidence in a vibrant marketplace and resale return.
In last year’s Second Home Attitude Report (2022), almost two-thirds of respondents (64%) said the drive to their second home takes four hours or less, and most of them (87%) would rather drive than fly. That second figure went down in 2023, but a clear majority would still rather plan for a four-hour drive than board a plane.
We have seen a significant surge in demand for second homes in drive markets from major metro cities. People are seeking the perfect balance between convenience via proximity and the serene escape of a second home. The desire to have a getaway within a reasonable driving distance became a growing trend during the pandemic, but is still a top preference with current and soon-to-be second homeowners. The Lake Tahoe area serves as a prime example, located just one hour away from Reno, four hours from San Francisco, and two hours from Sacramento.
In response to these trends, Pacaso is adding to its marketplace inventory several unique properties in popular, easy-to-get-to destinations, including—
- Home Run and Majestic in Lake Tahoe
- West District in Jackson, Wyoming
- a forthcoming home in Vail
- Southern California homes Pacific Place and Desert Ridge (in the greater Newport Beach and Palm Springs areas)
In June 2023, Pacaso saw a significant 59% increase in funded shares compared to the previous month, cementing its position as the foremost provider of second home co-ownership opportunities and demonstrating both the persistent and growing demand for second/vacation homes and Pacaso’s commitment to providing exceptional homeownership experiences.
Takeaways for real estate agents
If you’ve worked with buyers searching for the perfect second home, you’ve probably gained some insights of your own into what they’re looking for in a second home and why they want one in the first place.
The better you understand their priorities, the sooner you can get them the outcome they want.