Second homes are disproportionately represented in new single-family sales compared to their share in the existing housing stock, according to the National Association of Home Builders (NAHB). An analysis by the builders’ group found an estimated 15% of new home sales are classified as second homes.
The findings were based on the NAHB Wells Fargo Housing Market Index (HMI).
Researchers consider second homes as those sold to buyers who are not going to occupy the home year-round, but instead use it as a vacation home, investment property, or other purpose. About two-thirds (65%) of the builders indicated at least 5% of their homes were second homes, with the overall average weighted by 2020 single-family home starts.
NAHB analyzed data from the Census Bureau’s American Community Survey, which reported there were 7.5 million second homes in the U.S. in 2018.