October Second-Home Demand Up 70% From Pre-Pandemic Levels

Redfin, Seattle, said while demand for vacation homes has cooled slightly since the start of the year, it’s expected to remain above pre-pandemic levels as many Americans take advantage of more permanent remote-work policies.

Redfin reported demand for second homes rose by 70% from pre-pandemic levels in October; this outpaced August’s 48% gain but was well below January’s record 91% growth.

“Many companies have solidified their remote-work policies, which is fueling continued demand for vacation homes,” said Redfin Chief Economist Daryl Fairweather. “We expect this demand to stay strong as more employers establish permanent guidelines giving workers flexibility to live and work wherever they’d like.”

Fairweather said home buyers have benefited from removal of a restriction last March by the Treasury Department and Federal Housing Finance Agency that had limited the number of second-home and investment property loans Fannie Mae could purchase. That restriction, removed in September, is making it easier for second-home purchasers to get a low mortgage rate, which is likely also fueling demand for second homes.