Mortgages for Second Homes Declined 5% in 2024

Seattle, WA, June 2, 2025-U.S. homebuyers took out 86,604 mortgages for second homes in 2024, the lowest level in records dating back to 2018 and down 5% from a year earlier, reports RedFin.

This is according to the organization’s analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2024. The term “vacation home” is used interchangeably with “second home” in this report. There are more details on methodology at the end. 

While mortgages for second homes dipped to a six-year low in 2024, the rate of decline slowed substantially from the two years prior. In 2022, second-home mortgages fell 42% year over year, and in 2023, they fell 40%. The big declines in 2022 and 2023 were due largely to the vacation-home boom in 2020 and 2021, which was driven by affluent Americans taking advantage of low mortgage rates and remote work to decamp to vacation destinations.

Second-home mortgages made up just 2.6% of all mortgages in 2024-the lowest share on record. That’s down from 2.8% the year before and a peak of 5% in 2020. 

Demand for all home types was slow in 2024 because it was the second-least affordable year for homebuying on record, due to high home prices and mortgage rates. But demand for second homes fell more than demand for primary homes; mortgages for primary homes fell 1.4% year over year, less than half the decline in mortgages for second homes. 

There are several reasons mortgages for second homes are falling faster:

• Second homes are more expensive. The median value for second homes nationwide was $495,000 in 2024, compared to $385,000 for primary homes. Plus, loan fees for second homes increased in 2022, raising the total cost of buying one. 
• Vacation homes aren’t a necessity. Inflation drove up the price of nearly everything in 2024, prompting many Americans to cut back on unnecessary expenses.  When housing costs skyrocket and the market cools, people back off second homes faster. 
• The rental market has cooled. Purchasing a second home to rent it out is less appealing than it used to be because asking rents are no longer growing, and the short-term rental market has cooled from its peak. 
• In-office work. Many workers have less time to spend in a vacation home than they did during the pandemic because employers have asked workers to return to the office.

“Most people aren’t buying vacation homes at all because mortgage rates and insurance costs–especially for waterfront homes and condos–have skyrocketed. Plus, people know they’re unlikely to earn much revenue from listing on Airbnb now that occupancy rates are down,” said Lindsay Garcia, a Redfin Premier agent in Fort Lauderdale, Florida. “While some wealthy cash buyers are still purchasing second homes, they are much more likely to make a low-ball offer or request concessions than they used to be.”