NAR’s annual Investment & Vacation Home Buyers Survey shows vacation-home sales rose 4.7 percent to a record 1.07 million in 2006 from 1.02 million in 2005.
Twenty-two percent of all homes purchased last year were for investment, down from a 28 percent market share in 2005, while another 14 percent were vacation homes, up from a 12 percent share in 2005.
The typical vacation-home buyer in 2006 was 44 years old, had a median household income of $102,200, and purchased a property that was a median of 215 miles from their primary residence; 42 percent of vacation homes were closer than 100 miles and 32 percent were 500 miles or further.
The demographics favor vacation-home sales because large numbers of consumers are in the prime buying ages, and buyers want recreational property for personal use – investment is a secondary consideration.
The reasons listed for purchasing a vacation home by Buyers were:
1. 79% for vacation or as a family retreat.
2. 34% to diversify investments.
3. 28% to use as a primary residence in the future.
4. 25% for the tax benefits.
5. 22% for use by a family member, friend or relative.
6. 21% because they had extra money to spend.
7. 18% to rent to others.
- National Association of Realtors® 2007 -