The Pandemic is Fueling Demand for Vacation Homes
In the midst of change and uncertainty, people seek a safe getaway
In 2020, sales of vacation homes surpassed 16% growth over 2019. While the sales of existing homes in general grew by a whopping 5.6%, vacation homes in particular saw a massive increase in popularity. Here’s why and where this explosion in demand is taking place.
Why Now?
Vacation has always been a pleasant idea, so why did 2020 see such a massive increase in demand for vacation homes compared to other years?
Part of the fuel for this change was the drop in interest rates. 2020 saw historically low mortgage rates, which allowed many financially stable families to afford second homes that would have otherwise been outside of their budgets. Some people took advantage of the market by refinancing their homes, some sold in a strong seller’s market, and some hopped on the low interest rates to purchase a second home.
Another driver for this increase is the change in attitudes and priorities due to the pandemic. Experts reflect that although the typical vacation home buyer used to be from a generally uniform background and age group, such as empty nesters, there’s much more variety in vacation home buyers now. From growing families to young professionals to retirees, there’s now vacation home demand from people in every walk of life.
Living through a pandemic has shed light on the value of connection, personal space, and privacy. While hotels can offer a great vacation experience, owning a home for vacationing means a more isolated experience with less exposure. In order to have reliable family gatherings without getting too risky in life after Covid 19, owning holiday accommodation within the family both simplifies planning and also poses the opportunity of making residual income from an Airbnb rental property.
The rise of remote work drives the vacation home market as well. The remote effect on the housing market is such that big cities are losing popularity, while more rural areas with a more affordable cost of living see rising demand. Millennials and travel have always gone hand in hand, and now that many are living the remote experience and don’t need to go into work regularly, going on “vacation” and working from a vacation home has become a reality for countless young professionals.
Where Is Demand Rising?
Demand for vacation homes sees growth in more remote, less-populated areas such as ski towns and beaches.
When it comes to the ease of buying and selling a home in the last couple of years, previously-overlooked areas have often become the most competitive areas for house hunting. Just as out-of-state remote workers have moved out of cities like San Francisco, the best place to buy a vacation home is away from the crowds and near the natural beauty of mountains and beaches.
Many individuals looking for a holiday house on the beach have turned to North Carolina. Between access to natural wonders, outdoor recreation opportunities, and the relatively low cost of living, many individuals in the vacation home market are turning toward a post pandemic future in North Carolina.
Thinking of jumping on the travel boom and establishing your own second home in North Carolina? Consider building custom. Avoid the back-and-forth of bidding wars and create the vacation house your family has always dreamed of. With Atmos, the process is more seamless than ever.
