Second Home Buyers Still Looking

This post was written by Trisha Riggs, vice president of communications for ULI.

Despite the recession, high-end second-home buyers are still in the market, willing to purchase homes that meet their needs and desires but do not display conspicuous consumption, according to resort specialists speaking at ULI’s 2009 Fall Meeting in San Francisco.

According to a recent survey of second-home purchasers conducted by American Lives, the affluent are increasingly drawn to smaller units--provided they have the same amenities as larger, luxurious homes--because the downsizing is perceived to be more “politically correct” in the current economic environment of layoffs and budget cuts. 

American Lives President Brook Warrick said second-home buyers are still viewing the purchase as a personal reward, but that many of today’s buyers are purchasing the homes not as places to escape, but as gathering places to reconnect and re-establish bonds with family members and friends.

Life stages, said Warrick, are the best predictors of when purchasers will enter this niche market: 1)immediately upon retirement; 2) just prior to retirement; and 3) empty nesters still working, but who have different housing needs. What they aren’t compromising: any feature related to health and wellness--the one area that has not experienced any decline in consumer demand. These active, upper-income baby boomers are determined to stay fit and healthy, and are not content to age in just one place, but in several places, any of which could serve as a primary residence.

Also appealing: places that include educational components, and those that offer opportunities for altruism. "Being part of the greater community is very important to these buyers," said Toni Alexander, president and creative director of InterCommunications. Rather than presuming to know what the market wants based on pre-recession activity, it’s critical to examine how those buying preferences have changed, she said. "The world has changed, and once we understand that, we can do great things in design (of second-home and resort communities)."

Comments

[Jane Bakerson]

Agree with the analysis. We focus on Central America's second home market. Overall sales volumes are down in 2009, but the one bright spot we're seeing is a new breed of ‘lifestyle investors’ - people whose nest egg has thinned and are seeking to fulfill their retirement plans in cheaper destinations with a low cost of living. They're not looking for McMansions and trophy apartments but simple, small, functional properties.

[Brandon Green]

Gathering places to reconnect sounds exactly like the best reason to buy a second home.

[Pro2ProNetwork]

Interesting that second home buyers are looking for different locations that could be there primary residence. I would think those that are in the stages of retiring or empty- nesters would want a vacation dwelling, but due to the current economic situation this makes sense.