There’s nothing quite like having a vacation home, somewhere to escape when you need a break from everyday life. Of course, acquiring a vacation home comes with some high costs, namely a large down payment, additional mortgage, and potentially homeowners association (HOA) fees, depending on the type of home you get.
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The market for second homes is also shifting. Recent Redfin data shows that a typical second home is worth $475,000 compared to an average of $375,000 for first homes. Additionally, in 2022, the Federal Housing and Finance Agency (FHFA) increased upfront fees for second home loans.
These higher costs associated with vacation homes are partly why the demand for second homes was down 40% in 2023. Still, if you’re interested in purchasing a vacation home soon, you might want to get in on these hot markets where the demand is surging.
Jersey City/Newark, New Jersey
Jersey City is just outside of Manhattan. The demand for second homes in this area increased 35.7% from February 2023 to February 2024.
Grays Harbor, Washington
If you love hiking and want to be near some of the most breathtaking national parks, you might enjoy Grays Harbor, Washington. Demand in this area has surged 31.5% from February 2023 to February 2024.
San Juan Puerto Rico
If the tropics are more your thing, it’s best to get in on a vacation home in San Juan before the prices emerge further. Demand for vacation homes increased 26.5% from February 2023 to February 2024.
Rochester, New York
Many people are interested in a vacation home in the Finger Lakes area because it’s a beautiful place to spend the summers. It’s also not far from ski resorts if winter sports are more your style. Demand for vacation homes in Rochester, New York, increased 26.1% from February 2023 to February 2024.
Final Thoughts
If you want to purchase a second home in one of the areas mentioned, it might be time to take the house hunt more seriously before you’re priced out.
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This article originally appeared on GOBankingRates.com: In 2 Years, You Won’t Be Able To Afford a Vacation Home in These Popular Destinations
