BiggerPockets Daily Vacation Property Purchases Slow to 6-Year Low
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May 10, 2025 The demand for vacation homes has plummeted to a six-year low, altering the investment landscape significantly. Rising costs and the shift to remote work are causing buyers to rethink their second-home purchases. Notably, areas like Florida are experiencing sharp declines, while cities like Detroit see surprising upticks. This shift is prompting a move toward regional markets in the Southeast, offering unique investment opportunities amidst decreased competition in traditional hotspots.
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Vacation Home Demand Slumps
- Vacation home demand has fallen to a six-year low, signaling a major market shift.
- Second home mortgages dropped from 42% in 2022 to 35% of originations in 2024.
Factors Driving Demand Collapse
- Rising costs, tightened lending, and the return to office reduced demand for second homes.
- High insurance, mortgage fees, and affordability crisis heavily impacted buyers.
Florida Market Faces Multiple Challenges
- Florida leads the decline in vacation home purchases due to rising insurance, taxes, and disaster risks.
- Fear of buying at market peaks and regulatory issues cut demand sharply.