According to a new report from red fin.

Average rental prices rose 17.1% year-over-year nationally to $1,893 in popular second home markets in April. That compares to a 10% increase to $1,484 in locations that aren’t considered second-home destinations.

In the sales market, homes typical of second home markets sold for a record $516,423 in April, up 19.9% ​​year-over-year. In markets other than second homes, prices rose 14.8% to a record high of $389,156. Although the chaos surrounding the housing market is slowing, prices have soared since the start of the pandemic.

Top 5 U.S. Second Home Markets:

  1. Phoenix
  2. Cape Coral, Florida
  3. Naples, Florida
  4. Myrtle Beach, SC
  5. Vegas

Rental prices were up 25% year-over-year or more in four of those five areas — excluding Myrtle Beach — and selling prices were up at least 25% in all five .

Prices began to rise faster in second-home destinations in late 2020, as many affluent Americans sought to relocate and move away from busy metros. Mortgage rate freezes for second homes spiked in June 2020, remaining high through early 2022, peaking 88% above pre-pandemic levels in March 2021.

“The popularity of vacation towns has sent housing costs skyrocketing, making it harder for many residents to afford to live in their hometown,” said Redfin deputy chief economist Taylor Marr. “The second home boom is coming to an end as many holiday home buyers are shut out of the market due to historically high prices and high mortgage rates, but these same factors have already pushed residents away. Residents of seaside towns and popular vacation spots have spent the past two years vying for a limited number of homes with wealthy second-home seekers – and often losing.

A bright spot for residents who already own homes in vacation towns is that rising prices also mean home equity has increased significantly.

“Many places where prices have risen in part due to pandemic-driven second home purchases and migration will likely see price growth slow faster than other parts of the country as the market cools. “Marr said. “The outsized price growth is not sustainable, especially as demand for second homes falls.”

Phoenix is ​​a good example of the impact of the second home boom on the local housing market. In Phoenix, where there are more second homes than anywhere else in the country, rental prices rose 32.8% year-over-year to $1,946 in April, and home prices rose 25.3% to $495,000.

“We had even more second home buyers than usual last year from the West Coast, Midwest and Canada. It’s had a big impact on local shoppers, many of whom don’t have the cash to compete with the people who come in with big cash from out of town,” said Heather Mahmood-Corley, agent for Phoenix Redfin. “Many out-of-towners have been able to pay cash, make large down payments, waive the possibility of an appraisal and/or raise prices – something local buyers often don’t have the resources to do. TO DO.”

Prices also rose sharply in Cape Coral, Florida and Naples, Florida – the second most popular second home markets – where rental prices rose 41% and 37.7%, while prices for sale increased by 38.2% and 37.6%.

Second home mortgage applications in Phoenix increased 23% from 2018-19 to 2020-21, and they increased even more in Florida: 59% in Cape Coral and 75% in Naples. Applications rose 38% in Myrtle Beach and 16% in Las Vegas.

To view the full report, including charts and methodology, Click here.