Vacation home sales have been hot during the pandemic, according to the National Association of REALTORS®’ (NAR’s) recently released 2021 Vacation Home Counties Report. In 2020, vacation home sales rose by 16.4%, outpacing the 5.6% growth in total existing-home sales. Vacation home sales have continued to pick up from January through April 2021, rising by 57.2% year-over-year, more than twice the 20% growth in total existing-home sales during the same period. The share of vacation home sales to total existing-home sales has increased to 6.7% in the first four months of 2021, up from a 5% share in 2019.
The surge coincides with pandemic precautions: people working from home when they’re able, students attending school virtually and urban-based recreation limited by social-distancing regulations.
Location, Location, Location!
Vacation home counties are outperforming non-vacation home counties in terms of sales pace, price appreciation and days on market, according to NAR’s analysis of 145 vacation home counties and 1,060 non-vacation home counties. NAR delineated counties where vacant seasonal, occasional or recreational-use housing accounts for at least 20% of the housing stock as vacation counties.
Based on the U.S. Census Bureau’s American Community Survey (2019 five-year table), NAR identified 323 out of 3,143 counties, including independent cities, as vacation home counties, representing 10.3% of all U.S. counties.
Existing-home sales typically rose by 24.2%, on average, in vacation home counties, more than double the 11.2% annual pace in non-vacation home counties.
Home prices rose at a stronger pace in vacation home counties. The median existing-home sales price typically rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.
Top 10 Vacation Home Counties
Lee County, Florida, is located in Southwest Florida on the Gulf Coast. Fort Myers and Cape Coral are popular destination spots. Lee County has the largest number of seasonal vacation homes in the country, at 90,792, which accounts for 23% of the housing stock. In 2020, home sales rose 10%, the median sales price rose 12.3%, and properties sold 45 days faster than in 2019. Home prices are in the mid-price range with the median sales price at $247,000.
Oscoda County, Michigan, is located on the northern side of the Au Sable River that runs into Lake Huron. It is one of the smallest vacation home counties with 5,028 seasonal vacant homes that account for 54.5% of the housing stock. In 2020, home sales rose 53.8%, the median sales price rose 79.2%, and properties sold 30 days faster than in 2019. It is one of the most inexpensive vacation counties with a median sales price of $107,500.
Swain County, North Carolina, is located on the far western border of North Carolina. Knoxville, Tennessee, is about two hours away. Swain is one of the smallest vacation counties with 2,066 seasonal vacant homes that account for 22.9% of its housing stock. In 2020, home sales rose 140.7%, the median sales price rose 19.8%, and properties sold 48 days faster than in 2019. Home prices are in the mid-price range with the median sales price at $245,000.
Collier County, Florida, is located on the Gulf of Mexico in Southwest Florida. It is the third-largest vacation home county with 58,406 seasonal vacant homes that account for 27.2% of its housing stock. In 2020, home sales rose 4.6%, the median sales price rose 10.2%, and properties sold 53 days faster than in 2019. Home prices are still in the mid-price range with the median sales price at $314,000.
Dukes County, Massachusetts, consists of the islands of Martha’s Vineyard, Chappaquiddick Island, the Elizabeth Islands, the island of Nomans Land and other islets. It has 10,681 seasonal vacant homes that account for 59.7% of its housing stock. In 2020, home sales rose 13.8%, the median sales price rose 63.6%, and properties sold 38 days faster than in 2019. It is the second most expensive vacation home county with a median sales price of $1.4 million in 2020.
Alleghany County, North Carolina, is located in the Blue Ridge Mountains of Northwestern North Carolina. It is a small vacation home county with 2,432 vacation homes that account for 29.7% of its housing stock. In 2020, home sales rose 248%, the median sales price rose 9.9%, and properties sold six days faster than in 2019. Home prices are in the mid-price range with the median sales price at $219,900.
Garrett County, Maryland, is the westernmost county of Maryland. It is in the Appalachian Mountains and is drained by the Potomac and Youghiogheny rivers. It is a small vacation county with 4,623 seasonal homes that make up 23.9% of its housing stock. In 2020, home sales rose 35.8%, the median sales price rose 35.4%, and properties sold 48 days faster than in 2019. Home prices are in the mid-price range with the median sales price at $325,000.
Barnstable County, Massachusetts, consists mainly of Cape Cod and several small islands. It is the second largest vacation home county, with 62,643 seasonally vacant homes that make up 38.3% of its housing stock. In 2020, home sales rose 20.4%, the median sales price rose 16.1%, and properties sold 20 days faster than in 2019. Home prices are bordering in the high price range with the median sales price at $475,000, although home prices are relatively affordable compared to the homes in Dukes and Nantucket.
Alcona County, Michigan, is in the Northeastern Lower Peninsula with six miles of Lake Huron coastline. Detroit is about four hours away. It is one of the smallest vacation home counties, with 5,573 seasonally vacant homes that make up 49.8% of its housing stock. In 2020, home sales rose 80.4%, the median sales price rose 51.5%, and properties sold 10 days faster than in 2019. Houses are inexpensive, with the median sales price at $150,000.
Macon County, North Carolina, is in Western North Carolina. Macon is a relatively small vacation home county with 7,633 vacation homes that account for 29.8% of its housing stock. In 2020, home sales rose 155.3%, the median sales price rose 30.6%, and properties sold two days faster than in 2019. Houses are in the mid-price range, with the median sales price at $320,000.
Gay Cororaton is senior economist, director of Housing and Commercial Research for the National Association of REALTORS®.
