20+ Surprising Second Home Ownership Statistics You Need to Know

Owning second homes is an upcoming trend worldwide as people desire extra property for recreational purposes. When you need a second home in your portfolio, it is essential to understand home ownership trends and statistics.

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Top Second Home Ownership Statistics

• By 2018, 7.5 million second homes were discovered in the United States
• Approximately 5.6% of properties in the United Kingdom were categorized as second homes in 2020
• Around 63% of buyers in 2020 purchased their homes for personal use
• Owning second homes in the United Kingdom doubled to 3.4 Million in 2018
• 9% of the population in Australia have second homes
• In 2020, the United States had a 30% increase in second-home sales
• The prices of second homes in Canada had an 11.5% increase in 2020
• In 2019, 16% of residential property sales in South Africa were for holiday
• 46% of buyers bought an existing property
• 28% of Spanish households own second homes

Overall Second Home Ownership Statistics

Below are second home ownership statistics worth knowing about.

1. By 2018, There Were 7.5 Million Second Homes Available in the United States

With 7.5 million second homes, it’s clear that more people have chosen to buy second homes. Florida has the largest share of second homes, accounting for over 14.5% of all homes, while South Dakota has the smallest number of second homes, with only 20,000.

2. Approximately 5.6% Of Properties in the United Kingdom Were Categorized as Second Homes in 2020

In 2020, the United Kingdom had 5.6% of its total properties considered second homes. The statistics indicate that people across the United Kingdom embrace having second homes, which has significantly impacted the housing market.

3. Around 63% Of Buyers in 2020 Purchased Their Homes for Personal Use

Over 2/3 of second-home owners purchased their properties for vacation or personal purposes. Instead of purchasing homes for investment purposes, most buyers in the United States buy them for recreational purposes.

4. Owning Second Homes in the United Kingdom Doubled to 3.4 Million in 2018

An estimated 3.4 million people purchased second homes compared to 1.6 million in 2000. Buying second homes is a popular investment in the United Kingdom. In addition, it shows that the state of the second home market is promising.

5. 9% Of the Total Population in Australia Owns Second Homes

Many in Australia have purchased second homes, which they use for retirement and vacationing.

6. In 2020, the United States Had a 30% Increase in Second Home Sales

The United States had a high demand for second homes in 2020, resulting in over 30% sales. Although the rising mortgage rates and increasing home prices negatively impacted the second home market, sales were still high.

7. The Price of Second Homes in Canada Increased by 11.5% in 2020

The medium price of second homes skyrocketed by 11.5% in Canada, indicating that owning second homes is becoming popular. The increasing popularity is due to several factors, including increasing income.

8. In 2019, 16% Of Residential Property Sales in South Africa Were for Holiday

More people in South Africa are willing to purchase several portfolios and enjoy the advantages of owning second homes.

9. 46% Of Buyers Bought Existing Homes

While around 46% of second homeowners bought an already-built property, 37% preferred purchasing a new one. The statistic shows that existing homes are more affordable. However, new homes construction are still in demand, with more than 37% buying them.

10. 28% Of Households in Spain Own Second Homes

With at least 28% second homes ownership, Spain has the second highest number of people with second homes. The statistic demonstrates how second home ownership is common in Spain.

11. Second Home Owners in the Netherlands Increased by 53% In 2017

The number of people with second homes in the Netherlands increased by 53% between 2000 and 2017. More people have been buying second homes mainly due to their affordability.

12. 15% Of the Population in Portugal Own a Second Home

Approximately 15% of people in Portugal have purchased second homes to use as retirement or recreational home.

13. 6.5% of Residential Properties in New Zealand Are Second Homes

More than 6.5% of residential homes in New Zealand are second homes, depicting how popular second home ownership is.

14. Most Families Co-Own 5% of Second Homes in the US

In the United States, families wanting to own second homes prefer to share costs. That allows them to own second homes without solely investing in the property.

15. Marinette Iron Mountain Has the Highest Second Homes at 16,211

While second homes in Marionette Iron Mountain account for over 26.73% of all residences, Salisbury-Cambridge and Edwards-Glenwood Springs have 25.08% and 24.08%, respectively.

16. Demand for Second Homes Outpaced Demand for Primary Homes by 50%

Since 2020, there has been an increasing demand for second homes, especially in coastal towns in the United States.

17. People Aged Between 30 and 49 Years Owns More Second Homes

In the United States, the population between 30 and 49 years owns more second homes at 6.02%. On the other hand, people aged 18-29 and 50-64 years accounts for 4.68% and 4.13%, respectively.

18. New York Has the Highest Second Home Ownership at 2.1%

At 2.1%, New York has the highest number of second home ownership. Other cities popular with second home ownership include Mesa and Los Angeles.

19. Ocean City Has the Most Second Homes per Capita

Ocean City has the highest number of second homes per capita at 65%, followed by North Myrtle Beach at 42.4%.

20. Counties With Over 25,000 Second Homes in the US Are Near Metropolitan Areas

In the United States, counties with more than 25,000 second homes are mainly close to metropolitan areas. These counties are in California, Florida, and Massachusetts.

Final Thoughts

The second home market has been increasing over the years, with more people opting to purchase properties for vacation. Some people prefer purchasing second homes as a group to reduce the cost of ownership. With these second home ownership statistics, you can easily purchase the home of your dreams. 

Frequently Asked Questions (FAQs)

What is a second home according to the IRS?

The Internal Revenue Service defines a second home as a residence you live in for more than 14 days or 10 percent of the days you rent it out. This property can be a house, condominium, mobile home, or boat with basic living amenities like sleeping space, a toilet, and cooking facilities. Meeting this occupancy threshold allows you to deduct qualifying mortgage interest on federal tax returns up to statutory debt limits. For example, staying 15 days in a lake cabin you rent for 100 days qualifies it.

What does second home occupancy mean under Fannie Mae guidelines?

Fannie Mae second home occupancy guidelines require the owner to occupy the residence for some portion of each calendar year. The home must be suitable for year-round living, controlled entirely by the borrower, and usually located at least 50 miles away from your primary residence. Lenders prohibit timeshares or properties managed by rental pool agreements under these terms. If you plan to rent the property on Airbnb full-time without personal use, lenders classify it as an investment property instead.

How do I qualify for a second home mortgage loan?

Qualifying for a second home mortgage requires meeting stricter credit, debt, and cash reserve benchmarks than primary mortgages. Most conventional lenders demand a minimum credit score of 640 to 680 and a maximum debt-to-income ratio around 43 percent. You must also document at least two to six months of full mortgage payments in liquid cash reserves for both properties. Check your debt-to-income ratio before applying by adding both proposed housing payments together and dividing by your monthly gross income.

How do buyers convert a second home into a primary residence later in life?

Converting a second home into a primary residence involves moving your primary living base and establishing legal residency at the new address. You must update your driver’s license, voter registration, and tax filings to reflect the new address, typically living there for at least 24 consecutive months. Living in the home as your principal residence for two of the past five years also allows you to claim the Section 121 capital gains tax exclusion, up to 250,000 dollars for single filers.

Second home vs investment property: what is the difference in mortgage rates?

Mortgage interest rates for a second home are typically 0.5 percent to 0.75 percent lower than interest rates on an investment property. Lenders view true vacation properties as lower risk because owners occupy them personally, while pure rental properties suffer higher default rates during economic downturns. However, Fannie Mae loan-level price adjustments have narrowed this gap in recent years. Ask your mortgage broker to run pricing scenarios for both property types using identical credit scores to see exact rate spreads.

How much down payment is required for second home ownership?

Down payment requirements for second home ownership generally start at a minimum of 10 percent of the purchase price. A 10 percent down payment is available through conventional financing if you possess a strong credit score above 700. Buyers putting down less than 20 percent must pay private mortgage insurance, which adds 0.5 percent to 1.5 percent to the annual loan cost. On a 400,000-dollar vacation home, plan to save between 40,000 and 80,000 dollars for the down payment alone.

What is the most common budgeting mistake in second home ownership?

Underestimating recurring maintenance and utility expenses is the most frequent financial mistake people make with second home ownership. Many buyers budget solely for the mortgage, insurance, and property taxes while forgetting that remote homes require ongoing upkeep, pest control, and winterization. Annual maintenance on a vacation home typically costs 1 percent to 2 percent of the home value each year. A reliable step to avoid cash shortages is setting up a separate sinking fund with at least 5,000 dollars before closing.

Is buying a second home worth it for middle-income buyers?

Buying a second home is worth it for middle-income buyers only if the combined carrying costs remain below 30 percent of gross household income. Second homes build long-term real estate equity and create personal vacation space, but they also double your property liability. If carrying the mortgage prevents you from funding 401(k) accounts or maintaining an emergency fund, the financial strain usually outweighs personal enjoyment. Calculate your total debt load including both homes to verify your retirement savings targets stay fully intact.