Newport, RI leads the nation in second home transactions for 2023, according to a study conducted by Pasaco.
In the list of top 10 markets for second home transactions this year, Newport, Rhode Island, takes the lead with a 64% surge in second home transactions in 2023, marking a significant increase from 2022.
Famous for its iconic Gilded Age mansions, once the favored second home spots for renowned families like the Vanderbilts and Kennedys, Newport boasts a diverse range of activities and attractions, from scenic strolls along the Cliff Walk to savoring the town’s most unique shops and restaurants. Other New England counties, traditionally acknowledged as vacation getaway destinations, saw substantial growth in second home transactions in 2023. Noteworthy destinations such as Kennebunkport and Portland, Maine, along with Portsmouth, Rhode Island, recorded more than a 13% increase in transactions from 2022.
In its third annual Top Second Home Markets Report, identifying the leading luxury second home markets for 2023 and introducing the top markets to watch in 2024. The Pasaco report reveals the top ten counties across the U.S. that saw the biggest annual increases in second home transactions and the largest year-over-year appreciation for homes priced above one million dollars.
Big Apple border suburbs
Amongst this year’s top 10 markets for second home transactions is Fairfield County, Connecticut (14%) and Westchester County, New York (10%). “In today’s dynamic real estate landscape, it’s no surprise to witness metro-adjacent counties like Fairfield and Westchester, leading the charts in second home transactions. With the onslaught of hybrid back-to-office policies by several companies, home buyers are seeking the perfect blend of spacious, nature-centric living, all while maintaining the convenience of a short train ride to the city,” said Austin Allison.
“In today’s dynamic real estate landscape, it’s no surprise to witness metro-adjacent counties like Fairfield and Westchester, leading the charts in second home transactions. With the onslaught of hybrid back-to-office policies by several companies, home buyers are seeking the perfect blend of spacious, nature-centric living, all while maintaining the convenience of a short train ride to the city,” said Pacaso CEO and Co-Founder Austin Allison.
Destinations to watch in 2024
The top market to keep an eye on in 2024 is Volusia County, Florida, witnessing a remarkable 47% year-over-year increase in average second home value. Volusia also experienced a surge in second home transactions, registering a 19% growth and ranking as the second-largest year-over-year expansion.
Other counties experiencing significant appreciation trends include Washoe County, Nevada, home to Reno, which witnessed an impressive 26% increase in value from 2022, credited to its proximity to Lake Tahoe, absence of state income tax, and the appeal of less-crowded ski resorts like Mt. Rose. Meanwhile, Brunswick County, North Carolina, the state’s southernmost county, experienced a parallel 26% appreciation. Notably, Jefferson County, Colorado, a Denver suburb, saw an impressive 37% appreciation. Summit County, Utah, home to the popular year-round destination Park City, demonstrated an impressive 18% increase in second home values from 2022 to 2023.
“Expedia recently highlighted the phenomenon of ‘destination dupes’—budget-friendly alternatives to popular locations—that have left a lasting impact on the travel scene,” said Allison. “It seems this trend is extending into the real estate realm, with locales providing more affordable housing options while offering comparable amenities, access to outdoor activities, scenic beaches, and charming towns, akin to their more famous counterparts. Consider Bald Head Island, North Carolina, as a dupe to South Carolina’s Kiawah or the Charleston barrier islands, Mt. Rose as a substitute for Tahoe’s ski resorts, and even Golden, Colorado, as an alternative to the expected Colorado mountain towns.”
Florida gets its time in the sun
The pandemic-fueled rush to Florida and the surge in second home transactions in previous years seemingly persist, as three Florida counties secure spots on Pacaso’s 2024 watchlist. The top market to keep an eye on in 2024 is Volusia County, Florida, witnessing a remarkable 47% year-over-year increase in average second home value. Volusia also experienced a surge in second home transactions, registering a 19% growth and ranking as the second-largest year-over-year expansion. Volusia is most known for Daytona Beach and other picturesque beach towns like New Smyrna Beach and Ormond Beach. Notably, Volusia County has emerged with the highest average second home price in 2023 year-to-date, boasting an impressive average of $4,105,174.Orange County and Indian River County, Florida are also on our must watch list as they both saw more than 20% appreciation on luxury second homes.
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