Redfin Reports Modest Recovery in U.S. Vacation-Home Market
New Redfin data shows an unexpected rise in demand for vacation homes in the United States during 2025, marking a shift from previous years of sluggish activity due to high mortgage rates and weak transaction volumes. While this appears like the start of a recovery, it is driven by affluent buyers rather than broader market improvements. The increase was modest—second-home originations rose only slightly from 86,870 in 2024 to 90,413 in 2025. This growth still left activity about half of pre-pandemic levels and well below the peak seen during the housing boom of 2021. The data also highlights a growing economic divide: most second-home buyers are high-income earners with median incomes over three times that of typical U.S. households. The report underscores what many economists have called a 'K-shaped recovery,' where wealthier Americans see growth and rising asset values while lower-income groups remain constrained by affordability issues.
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Topics: consumer confidence mortgage activity vacation homes