Secondary Homes Move From Niche Market to
MAINSTAY
The majority of Coldwell Banker Global Luxury Specialists say that their HNW clients are looking for primary residences – and that may be true, depending on the market they represent – but recent data also supports the opposite narrative. The affluent still appear to be on the hunt for secondary homes despite higher interest rates eating into their affordability.
MORE SECONDARY-HOME OWNERS THAN EVER BEFORE The secondary-home ownership trend gained prominence during the pandemic as remote work took root along with
growing wealth and stock market portfolios. With remote work expected to be permanent for many high-income earners, secondary desires – like creating generational wealth, the need for long-term wealth-building assets, and a strong push to spend quality time with their favorite people in memorable locales – have coalesced around secondary homes, taking them from a niche market to a mainstay of the affluent lifestyle. According to Wealth-X, the number of U.S. homeowners with a net worth of $5 million+ jumped from 1,255,710 to 1,675,756 from 2021 to 2022 – a 33% increase. The percentage of those who own two or more properties also increased from 70% in 2021 to 79% in 2022 – with the most significant increase going to those who own three or more homes.
SEC O N D A R Y - H O M E OW N E RS HI P GROW TH 2021 V S . 2022 # of properties
1 Home
2 Homes
3+ Homes
# of individuals
% of individuals
376,713
348,540
30%
21%
2021
2022
2021
2022
301,370
383,559
24%
23%
2021
2022
2021
2022
577,627
943,657
46%
56%
2021
2022
2021
2022
*For individuals with a net worth of $5 million+
Source: Wealth-X, an Altrata company
