According to a report from Redfin, the Seattle-based, technology-driven real estate company, demand for second homes declined -19.3% year-over-year in August. This marks the third consecutive month of declines. Primary home demand also fell declined in August for the second month in a row, dropping -1% year-over-year.
The report notes that while demand for second homes appears to have fallen significantly further year over year than demand for primary homes, that’s likely because there was a relatively large gain in demand for second homes a year ago. Demand for vacation homes swelled during the coronavirus pandemic — surging as much as 172% in April — as many affluent Americans sought an escape from cramped city life amid stay-at-home restrictions. But as the overall housing market has started to cool, that insatiable demand has slowed.
According to Redfin Lead Economist Taylor Marr, “The pandemic isn’t over, but the desire to escape isn’t as intense as it was before. People are increasingly returning to life as normal, with kids going back to school and cities coming to life again. The housing market as a whole is still booming, just not as strongly as it was in the second half of 2020. Homebuyer competition, migration, and home-sales growth have all slowed.”
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Demand for Second Homes Falls Nearly 20 Percent