According to Pacaso Second Home Market Reportmedian second home price increased 19.7% year-over-year nationwide in the first quarter of 2022up 37% from the first quarter of 2020, outpacing the rise in median prices for primary homes, which rose 15.6%.
“Low inventory continues to fuel record primary and secondary home prices across the country. With rising home prices and limited inventory, it is more important than ever to effectively utilize existing homes,” said the co-founder and CEO of Pacaso. Austin Allison.
Six counties in the U.S. saw more than 50% growth in the median price of second homes and investment properties year-over-year, with Valley County, Idaho showing the strongest growth, up 98% from last year. Valley County is home to McCall’s Resort, along with Payette Lake, three area ski resorts, and is a popular getaway destination for Boise city dwellers and those seeking the great outdoors.
“The permanent shift to working from home has forever changed the way people work and gives second home buyers more flexibility to spend time away from their primary home and office,” Allison said. “Coupled with growing home price appreciation, demand for second homes in regional destinations is growing faster than prime destinations, such as Aspen or Malibu. they can spend more time living and working. Ease of access, proximity to outdoor recreation, and a desire to connect with the community remain key factors in second home buying decisions.
Cumberland County, Maine saw the second strongest second home price growth in the first quarter of 2022 with a 91.3% year-over-year increase. Cumberland County is home to Cape Elizabeth, which is less than a 30-minute drive from Portland, Maine.
The third strongest growth in median second home price from the first quarter of 2022 came from Gillespie County, Texas, which saw a 77.7% growth in its median second home price from the first quarter of 2022. Last year. Located about 70 miles west of Austin, has increasingly become a popular wine tasting destination. Price growth in Gillespie County is likely due to several factors, including its proximity to Austin, one of the nation’s fastest growing tech hubs with a current metro area population of 2,176,000. 2022, an increase of 2.79% compared to 2021.
“Leading tech companies like Oracle and Tesla have moved their headquarters to Austin, and others like Google and Facebook have expanded their presence in the Texas city,” Allison said. “The nearby boom and seepage of tech money mixed with the beauty of Hill Country likely explains the sharp price increase as inventories remain low and demand continues to exceed pre-pandemic levels at the national scale.”
Nationally, the share of second home mortgage rate locks was 4.2% in the first quarter of 2022, 1.2 times above the pre-pandemic national average. In the first quarter of 2022, Fannin County, Georgia saw the strongest growth in second home transactions, up 109.8% from 2021, which is only about a two-hour drive away. from Atlanta, making it a viable second home destination for those wishing to stay nearby. distance from metro Atlanta area.