Imagine having a peaceful retreat just an hour's drive away or a property that generates rental income while you're not using it. These are just a few reasons why Americans are investing in second homes. But what does owning multiple properties really entail?
This report details findings from our recent study of 211 Americans who own multiple homes, examining their purchase timing, security concerns, and future plans. Learn what it's like to manage a second home in today's market, including the potential benefits and the unexpected challenges of this growing real estate trend.
Key Takeaways
- 51% of multi-home owners bought their second home within the past 3 years, with 14% making the purchase in the past year.
- 1 in 10 multi-home owners has experienced porch piracy at their second home.
- 16% of multi-home owners plan to invest more in home security for their second home, while nearly 1 in 4 (24%) struggle at least somewhat to afford proper security measures for their second home.
- 1 in 5 multi-home owners is now considering or in the process of selling their second home due to security risks or costs.
- Meanwhile, nearly 2 in 5 multi-home owners (37%) are considering moving their primary residence to their second home.
Second-Home Ownership Trends
We'll begin by examining the trends in multi-home ownership across different age groups, revealing insights into visitation frequency and motivations for acquiring additional properties.
The COVID-19 pandemic sparked a surge in second-home purchases, but this trend has since cooled. Economic shifts and a return to office work have tempered the once-hot market for vacation homes and investment properties.
Still, over half of the multi-home owners we surveyed (51%) acquired their additional property within the past three years. Of them, 14% bought theirs within the last year, including nearly 1 in 5 Gen Z and millennial multi-home owners (19%—a rate nearly three times higher than that of Gen X, 7%).
As for the motivations behind these purchases, nearly half of Gen Z and millennial multi-home owners (49%) cited generating rental income as their primary motivation for purchasing a second home.
Proximity to their primary home was a key factor in second home ownership, especially for younger buyers. Millennials and Gen Z were 30% more likely than Gen X to own a second home within an hour's drive of their main residence. This closeness may influence visitation patterns, and we found that 36% of all multi-home owners have visited their second property at least once a month. Only 12% have visited once a year or less.
Crime Concerns
This section explores the security challenges multi-home owners face, focusing on their experiences with various types of crime at their second properties and their perceptions of local crime rates.
Nearly 1 in 5 multi-home owners (18%) believe that crime rates in the vicinity of their second property have increased in recent years. Porch piracy is a common security issue and one that 1 in 10 Americans owning multiple homes have experienced at their second property.
Vehicle-related crimes were also a problem: Nearly 1 in 12 multi-home owners reported experiencing vehicle theft or damage at their second home. Property crime affected a slightly smaller proportion, with about 1 in 14 multi-home owners having faced such incidents at their additional residence.
Securing Second Homes
Now let's examine the security measures multi-home owners use at their second properties, how effective they believe them to be, and the financial challenges associated with these efforts.
Security cameras were the most popular protective measure, with 55% of Americans owning multiple homes having installed them at their second property. Smart home security systems were deemed the most effective, with 93% of users rating them positively. Despite the importance of home security (especially for residences often left unattended), over 1 in 8 multi-home owners (13%) had no security measures in place at their second home.
Financial constraints play a role in second-home security decisions, too. Nearly 1 in 4 Americans owning multiple homes (24%) reported at least somewhat struggling to afford proper security measures for their second property. However, 16% of multi-home owners said they plan to invest more in security for their second home in the future.
The Future of Second-Home Ownership
This section examines how multi-home owners view their properties, their plans for the future, and their advice to potential buyers.
Most multi-home owners were satisfied with their decision to buy a second home. They were 6.5 times more likely to recommend it than to express any regret about their purchase. However, some owners faced challenges: 1 in 5 were considering selling their second property due to security concerns or costs.
The real estate market has been difficult for some sellers. Among multi-home owners, 21% were struggling to sell their second property, while 47% expected to face this issue in the future. Looking ahead, 2 in 5 owners were thinking about selling their second home within the next 2 to 3 years.
Other second-home owners were considering another significant change. Nearly 2 in 5 (37%) were thinking about making their second home their primary residence.
Balancing Opportunity and Risk in Second-Home Ownership
Second-home ownership is complex and ever-changing. Security concerns, financial strains, and market uncertainties cast shadows on the otherwise bright prospect of multi-home ownership. Still, second homes could continue to play a significant role in the real estate market. Whether as investments, vacation retreats, or potential primary residences, these properties offer both opportunities and obstacles. To succeed in this changing field, current and future multi-home owners should stay informed about security, market trends, and finances.
Methodology
For this study, we surveyed 211 Americans who are multiple homeowners for insights into their second-home security practices and their current and future homeownership plans.
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