Demand for vacation homes is now down over 50% from the pre-pandemic levels, according to the latest report from Redfin.
- Mortgage-rate locks for second homes were down 52% from pre-pandemic levels on a seasonally adjusted basis in March. In comparison, with primary home rate locks are only down 13.0%.
- Second-home rate locks are now at the lowest level since 2016 in both February and March.
Analysis. Taylor Marr, Redfin Deputy Chief Economist, said higher home payments and less work from home opportunities means less demand for second homes “With housing payments near their all-time high; a lot of people can’t afford to buy one home right now, let alone a second…Add the recent increase in loan fees, inflation, shaky financial markets, the end of pandemic-related financial stimulus and many companies calling workers back to the office, and it’s simply a challenging time for most Americans to buy a vacation home.”