A mindset dubbed “YOLO psychology” is driving the emerging boom in second-home sales this fall, with an increasing number of households opting to use funds that would previously have been allocated for traditional vacations and trips to purchase a second property in a vacation destination. John Burns Real Estate Consulting reported at the end of August that buyers plan to treat these vacation homes more as second primary residences than true vacation homes and, as a result, are less interested in being able to rent them out than they are in confirming the presence of elements like high-speed internet, home offices, and remote learning spaces for kids.
The report also indicated most second-home purchases are taking place in locations less than four hours drive from the buyer’s primary residence, giving buyers the option to spend most of their time in the second home and return to the primary residence only occasionally for work obligations. The research team said the combination of “YOLO” (you only live once) and “FOMO” (fear of missing out) is driving buyers to purchase homes in droves.
“Households who may have otherwise waited have decided now is the time to buy,” they wrote. “Take advantage of the boom by understanding second-home buyer preferences” in lifestyle and location. Buyers “desire a getaway to ‘invest in family’ as well as a place of refuge for the future,” they added.
5 Key Facets of the Second-Home Boom
According to the report, there are five things to know about the emerging second-home boom:
- Buyers want drive-to destinations that do not require air travel or overnight stays to reach.
- There is an overwhelming preference for second homes in markets within four hours’ drive of the primary residence.
- Buyers plan to stay in their “second homes” weeks or months rather than just on weekends.
- Homes that are finished and ready for immediate use are far more attractive than unfinished properties or those in need of work.
- YOLO psychology and mindset are driving sales because buyers feel it is imperative to manage to enjoy life safely and fully during the COVID-19 pandemic.
Have you bought a second home recently?
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