In 2022, the total count of second homes was 6.5 million representing 4.6% of the total housing stock, according to NAHB estimates. This reflects a decline from 2020, when the number of second homes stood at 7.15 million.
As of 2022, the state with the largest stock of second homes was Florida (1 million), accounting for 15.3% of all second homes. Wyoming had the smallest stock with approximately 16,320 second homes, . Half of the nation’s second homes can be found in these seven states – Florida, California, New York, Texas, Michigan, North Carolina, Arizona, and Pennsylvania.
In-depth analysis of the county level data shows that the concentration of second homes is not simply restricted to conventional locations like beachfront areas. There were 807 counties spread over 50 states where second homes accounted for at least 10% of the local housing stock. Only Washington D.C. was the exception, reporting a second home share of 1.8%. Across the nation 314 counties, 10% of all counties in the U.S., had at least 20% of housing units that were made up of second homes.
Counties where at least half of their housing stock is second homes were widely spread over in 14 states. Of these counties, four were in Wisconsin, four in Colorado, two in Michigan, Minnesota, Utah, California, Massachusetts, and Pennsylvania, and one county each in Alaska, Idaho, Maryland, Missouri, New Jersey, and New York, These national patterns are mapped below.
Counties with more than 25,000 second homes are mostly located in or near metropolitan areas. The top 10 counties with the most second homes account for around 11.2% of second home stocks, most of which were in Arizona, Florida, California, Massachusetts, and New York. Of the top 10 counties regarding absolute numbers of second homes, only three counties (Lee County, Florida, Barnstable County, Massachusetts, and Collier County, Florida) had more than 20% of their housing stock in second homes.
In terms of methodology, this analysis focuses on the number and location of second homes that would be qualified for the home mortgage interest deduction by individuals using the Census Bureau’s 2022 American Community Survey (ACS). It does not account for homes held primarily for investment or business purposes.
NAHB estimates are based on the definition used for home mortgage interest deduction: a second home is a non-rental property that is not classified as taxpayer’s principal residence. Examples could be: (1) a home that used to be a primary residence due to a move or a period of simultaneous ownership of two homes due to a move; (2) a home under construction for which the eventual homeowner acts as the builder and obtains a construction loan (Treasury regulations permit up to 24 months of interest deductibility for such construction loans); or (3) a non-rental seasonal or vacation residence. However, homes under construction are not included in this analysis because the ACS does not collect data on units under construction.
2 Responses
Is there a way to know the number of Americans who own 2 or more homes for years both before the enactment of Citizens United and also for the years since it was enacted?
Long Term rentals vs Second homes in America has become a problem for the housing market availability. Too few people own too many homes. Long term rental properties have been reduced by VRBO and AIRBNB, (over 10 MILLION listings for short term rentals). These short term rentals are so profitable, owner have no desire to sell or rent available housing that exceptionally wealthy people own. How will the housing crisis in America ever be solved? How many new AFFORDABLE homes can be built each year? (The average age for a new home buyer has increased from 28 years old to 40 years old.) For the most part, the cost of the short term rentals is really only for those individuals who can afford the short term rentals vs a hotel room. (also hurting the hotel industry).
I suggest that a second or multiple rental homes should have NO TAX DEDUCTIONS, (including property, school taxes, repairs, cleaning, etc). Also, any short term rental income should be taxed at the full tax rate of total income for the individual. People who have more than two homes and place these homes in LLC or other protections should have these properties taxed at the same level UNLESS THEY ARE LONG TERM RENTALS. Long term rentals, (over 6 months) would be exempt from these tax implications.