What are the top luxury second home markets of 2022?
Published Date: January 5, 2023
While the real estate market has slowed down after the pandemic-driven surges of 2020 and 2021, many popular luxury vacation destinations across the country continued to see a rise in second home demand in 2022. In this year’s Top Second Home Markets Report, we reveal the top 10 luxury second home markets of 2022. These are the markets across the US that saw the biggest upticks in second home buying activity. “Despite a national cooling in residential real estate, we’re finding that the luxury real estate market is still in a league of its own,” said Pacaso CEO and Co-Founder Austin Allison. “ High-net-worth buyers are not as reliant on financing, so they might be less deterred by rising rates, and we hear a lot from our buyers that they don’t want to wait for perfect market conditions — they are ready to enjoy the benefits of a second home now.”
Drumroll please ... these are 2022’s top luxury second home markets
To determine the top U.S. markets, Pacaso analyzed second home mortgage rate lock data — an indicator of second home buying activity. Here are the 10 U.S. counties that saw the biggest increases in the share of second home mortgage rate locks for homes priced above $1 million. Source: Pacaso analysis of Optimal Blue mortgage rate lock data through December 6, 2022.“What’s interesting here is that many of the counties that saw the largest year-over-year shift toward second home buying activity this year are already regarded as luxury top second home destinations,” said Austin. “Places like Napa, Kauai, and New York City all made the list this year. In previous years, lesser known “destination-adjacent” locations saw the biggest shifts, but this year there’s a mix of more established markets and up-and-coming destinations. More modest price growth, and perhaps even price drops in some markets, could be contributing to more buyers turning again to established locations to find the second home of their dreams.”
National parks, mountain regions and coastal towns nab top spots
Compared to last year, sought-after destinations in Utah, Florida and California saw the biggest gains in the number of people purchasing luxury second homes.In Washington County, Utah, where the average second home price was $1.3 million, the share of luxury second home mortgage rate locks was up 10.3% year-over-year — the largest increase in the country. Home to Zion National Park and scores of protected park land, this southernmost county of Utah has long been a popular vacation destination.Osceola County, Florida (6.1%), and Nevada County, California (4.5%), also saw the biggest year-over-year share increases among the top markets. Osceola County is situated just south of Orlando and is in close proximity to Florida’s famous east coast beaches. Nevada County, home to Truckee, is situated in the Sierra Nevada mountains and is a short drive from the world-class ski resorts of Lake Tahoe.
Find your second home with Pacaso
With demand and prices for second homes continuing to rise in many areas, co-ownership offers a smarter and more responsible option for buyers looking to make memories now in a second home. Pacaso has co-ownership listings in over 40 world-class destinations. Browse available second homes.
Pacaso identified the top U.S. luxury second home markets by selecting the 10 counties with the highest year-over-year increases in second home mortgage rate locks between January 1 and December 6, 2022. Counties without at least 50 second home transactions in the period, as well as those with second home mortgage rate lock share below 10%, were excluded from the analysis. Luxury second homes are defined as homes sold for $1 million or more that are designated for seasonal and/or recreational use.Mortgage rate lock data is an indicator of second home buying activity. When applying for a mortgage rate lock, a home buyer must specify whether they are securing a mortgage rate for a primary home, secondary home or an investment property. Approximately 80% of mortgage rate locks result in home purchases. Mortgage rate lock data was provided by real estate analytics firm Optimal Blue and includes a sizable share of the market that is taken to be representative of the whole. Second home mortgage rate lock transactions and average second home purchase price data were sourced at the county level.