Takeaways from the NAR Vacation & Second Homeowners Report

June 2, 2015

 

FROM AN INMAN ARTICLE BY HEATHER BAYER – TAKEAWAYS FROM THE NAR VACATION HOME AND INVESTORS REPORT:

  1. Second home investment is on the rise
  • Vacation home sales represent 21% of all real estate transactions in 2014
  • The growth in these sales plus the rise in demand for vacation rentals give rise to a highly profitable niche market.
  1. Interest in investment properties is slowing
  • NAR reports the fourth year of decline in residential property purchased primarily for rental income or price appreciation
  • The short term rental market is different and the real estate agent is the go-to expert
  1. Vacation home buyers live an average of 200 miles away
  • Property management is often a necessity
  • The real estate agent can direct the buyer to competent management companies
  1. Boomers are buying for later retirement
  • 19% of vacation home buyers plan to convert the property into their future primary residence.
  • Agents understand the specific needs for retirement and have good knowledge of short term rental demand, occupancy rate and seasonality in their area
  1. There are more affluent families
  • The typical vacation home buyer had a median income of $94,380 and 54% bought a single family home. 33% of buyers plan to use the property for vacations and bought in the South or in beach communities.
  • Cape Cod is the perfect market
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