Second-Home Market Boom

According to a recent analysis by American Demographics Magazine, the second-home market is worth $19 billion a year, which is up 46% since 1995. This market is expected to grow 5% annually over the next five years.

Who comprises this market? Second-home owners tend to be high-income, high-asset, middle-age or older couples, who have childen nearing adulthood or have no children living at home.

These homeowners are major contributors to local economies, which states like Florida, Arizona and others have realized for some time. While many second-home owners are driven to sunny and warm climates, a large number are seeking out smaller college towns offering a high-quality of life and reasonable cost of living. Places like Chico, CA, Boise, ID, and Bloomington, IN fit that description.

Source: American Demographics Magazine, June 2003.