Currently Reading

Demand for Second Homes Soars Above Pre-Pandemic Levels

Advertisement
Housing Markets

Demand for Second Homes Soars Above Pre-Pandemic Levels

Second homes were in high demand during 2021 as more Americans took their remote jobs on the road


January 7, 2022
second home
Image: Stock.adobe.com

Thanks to low mortgage rates and remote work flexibility, demand for second homes surged in mid-2020 and remained high throughout 2021 with a 77% increase from pre-pandemic levels in December, Forbes reports. More buyers took advantage of mortgage-rate locks during the pandemic to protect against impending interest rate hikes, and as a result, many were able to purchase second homes.

As many Americans make the transition to remote work permanent, demand for second homes is likely to remain high, though seasonal patterns could affect home purchases and cause a slight slowdown into the start of 2022. 

The popularity of second homes skyrocketed in mid-2020 as affluent Americans flocked to suburbs and less populated areas, taking advantage of low mortgage rates and remote work. The slight slowdown in mortgage-rate locks from November to December is likely an effect of the holiday season and not indicative of dampening demand.

A mortgage-rate lock is an agreement between a home buyer and a lender that allows the buyer to lock in an interest rate on a mortgage for a certain amount of time, offering protection against future interest rate hikes. Buyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage-rate locks result in actual home purchases. 

Read more

Related Stories

Housing Markets

Texas Is Home to More Than One Overvalued Metro

The 2008 housing bubble missed Texas, but the popular Sun Belt state is now home to some of the priciest regional markets in the nation

Market Data + Trends

Housing Inventory Is Falling at Its Slowest Pace in Two Years

April for-sale housing inventory fell at a single-digit year-over-year pace for the first time since the start of the pandemic

Housing Markets

Which Local Housing Markets Will See Price Reductions in 2022?

Some overheated housing markets are already seeing prices drop, but most will be bogged down by more gains throughout the majority of 2022

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.