Demand for vacation homes fell 40% in 2023

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  • Demand for second-home mortgages fell twice as fast as mortgage demand for primary homes, as housing costs rose to new heights.
  • An early look at this year’s data shows that demand for vacation homes hasn’t picked up in 2024; interest in second-home mortgages has been sitting near an 8-year low all year. 
  • Many of the people who did take out mortgages for second homes last year were high earners, white and/or Gen Xers. 
  • Austin and the Bay Area saw the biggest declines in mortgages for second homes in 2023.
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U.S. homebuyers took out 90,772 mortgages for second homes in 2023, down 40% from a year earlier and down 65% from the height of the pandemic housing boom in 2021.

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For the sake of comparison, mortgages for primary homes fell at half that rate; they were down 20% year over year in 2023 and down 35% from 2021.

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https://www.redfin.com/news/vacation-home-mortgages-decline-2023/