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Cape May, N.J., has the highest share of vacation homes in the U.S.
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The U.S. market for second homes has remained stable despite rising mortgage rates. In fact, recent insight from housing market platform shows that 2.5% of all new mortgages in the past year were for second homes, unchanged from the previous year. 

The top markets for second homes are mainly beachfront or mountain resort areas. Cape May County, N.J., leads with nearly half of its mortgages being for second homes. This was followed by Summit County, Colo., in which more than 40% of all mortgages in the region were for vacation homes.

Of course, for many families, buying even one home seems financially out of reach. In 2023, the median household income for homebuyers jumped 22% to $107,000, from $88,000 the prior year, according to the National Association of Realtors.

Data on second-home buyers is harder to come by, but a 2018 report from financial technology firm SmartAsset claimed the typical second-home buyer earns 160% more than the average buyer of a primary residence.

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