Factors That Drive The Trend Of Buying A Second Home While Renting A Primary Residence
Despite of sudden drop in house sales during a pandemic and a huge rise in mortgage rates after the pandemic, people are showing interest in the sale of a second home. The second home sale jumped to 90% at the start of 2021, compared to the previous years. There has been a shift among homebuyers who are interested in buying a second home, almost 64% of people who are renting currently, are buying a second home.
What is driving this trend?
One of the main reasons is record high home prices. During the pandemic, new homes were not constructed due to the lockdown protocol. After everything was gotten back to normal, prices of basic home construction materials increased. So as a result, the price of a finished home increased. Buyers were unable to purchase homes for a long time in the city area. Furthermore, purchasing a second home can save the homeowner a lot. It is estimated that in today’s market roughly $76,000 can be saved if you bought a home in a remote area.
Future of this trend
The popularity of buying a second home is growing. Many people are working from home. For remote work, it is not necessary to stay in a city or big metropolitan area. As second homes are more affordable, people with median income are interested to buy second homes as their first homes.