"They are affluent," says Joel Sowers, executive vice
president of
Centex Destination Properties, which has done its own demographic
tracking as it blueprints new housing divisions that cater
primarily to the second-home market. According to his stats, their
average income is more than $125,000, nearly $50,000 higher than
the NAR's estimate. And a lot of his company's buyers are paying
cash.
But don't let the statistical averages blur your market vision,
says Sowers. "If you go back to the '60s and '70s, families had to
decide if they wanted to purchase a second car," he says. "Today,
that's happening with
real estate. It's not just the super wealthy.
We're selling to a much wider demographic than most people would
think. And it's not just Boomers," he says, pointing to a long
lineup that includes a hefty chunk of 30-something Gen-Xers.
There are two big reasons why people snap up a second home:
pleasure and business. More often than not, say the experts, it's a
mix of both.
"Most people buy for recreation, but they want it to make sense
from an investment standpoint," says David Hehman, president of
EscapeHomes.com and a partner in the NAR second-home survey.
The fun part is fairly easy to qualify. People want to have
someplace to go to unwind. That could mean a place near a golf
course or a ski slope, up in the mountains, or on a beach or
lakefront property. People are often inspired to buy their second
home in those places where they enjoyed a vacation; that weekend
trip to
Utah or the week along the
Maine shore has inspired scores
of people to put down a second stake.
Las Vegas, the vacation
capital of
America, is a big second-address destination, as much
for its sunny links as The Strip.
The investment angle on buying a second home, though, takes some
studying. And there are some bottom-line results playing in the
second-home market's favor.