Demand for Second Homes Dwindles in 2024

Demand for second homes has fallen as costs have become unattainable for many households. According to a recent report from real estate marketing platform Redfin, homebuyers across the U.S. took out 86,604 mortgages for second homes during 2024. This is the lowest level recorded since 2018 and is 5% lower than in 2023. The demand for new mortgages has fallen even further in the few years leading up to 2024. In 2023, for instance, second home mortgages decreased by 40% year-over-year, and in 2022, second-home mortgages declined by 42%. Additionally, second-home mortgages made up just 2.6% of all mortgages in 2024, which is down from 2.8% the year prior.

Where Has Second-Home Demand Changed the Most?

Of all states, Florida saw demand for second homes fall the fastest. In Miami, second-home mortgage originations decreased by 32.2% in 2024, which was more than any other major U.S. metro. Miami is followed closely by Orlando, Fla., which saw a 28.4% decline in second-home mortgages, and then West Palm Beach, Fla., which saw second-home mortgages fall by 28%.

Meanwhile, mortgages for second homes increased the most in Detroit—26% over the past year. Additionally, in San Francisco, they rose by 17% in 2024, and in San Jose, Calif., they grew by 17%. 

Demand for all home types was slow in 2024 because it was the second-least affordable year for homebuying on record, due to high home prices and mortgage rates. But demand for second homes fell more than demand for primary homes; mortgages for primary homes fell 1.4% year over year, less than half the decline in mortgages for second homes. Read more