NJ Real Estate as a Vacation / Investment Home Part 3

Given the demographic demand, the second home market is expected to remain healthy for many years to come. The size of the second home market is significant. Analysis of the US Census Bureau data shows there are 7.5 million vacation homes and 39 million investment units in the United States, compared to 75.2 million owners-occupied homes.

The long term demand for second homes looks favorable because there are large numbers of people in their prime years for buying a second home. Currently, 38.7 million people in the United States are ages 50-59, 45.3 million people are between 40 and 49, and another 40.9 million are 30-39. These younger segments will drive the second home market over the next decade.

Second home buyers are generally middle aged, middle to high income households - many of the baby boomer generation. Vacation home buyers, with a median age of 46 in 2007, plan to keep their home for a median of 10 years. Investment buyers, at a median age of 42, plan to hold their property for 4 years.

Baby boomers are still at the peak of their earning years, have both the means and the desire to purchase second homes, and want to diversify their portfolio of assets. In fact, the baby boomer population demonstrates that diversifying portfolio investments is a significant motivation for purchasing a second home.

For more information about vacation or investment homes, contact Dan Kurland at (732) 233-6969 or dkurland@weichert.com today!