Wealth growth has increased demand for vacation and investment homes among affluent Americans, this third annual report provides an overview of product types, location preferences, and desired amenities for this market
BETHESDA, MD., May 2, 2024 – Leading real estate consulting firm RCLCO today announced the availability of their 2024 Vacation and Investment Home Survey Report, an overview of the vacation and investment home market and owner/buyer preferences. Based on more than 1,200 affluent survey respondents who are either current vacation/investment homeowners or considering the purchase of a home, the report outlines how preferences and expectations change based on location, household type, age, and amenity offerings. The report will be available for purchase via RCLCO’s website, at the following link.
“The demand for vacation and investment homes has accelerated in recent years due in part to substantial increases in affluent families’ wealth due to value appreciation of primary homes and the recent stock market performance,” said Gregg Logan, Managing Director of RCLCO. “Many wealthy Americans purchase a vacation home for their own leisure and relaxation purposes, but for others, investment is a consideration because a vacation/investment property offers the potential for rental income and long-term appreciation when not in use by the purchaser. These homes often offer amenities and locations that cater to these affluent households’ lifestyle preferences, such as waterfront properties, ski-in/ski-out locations, and properties in resort communities. It is essential that builders and developers understand what this growing segment of potential buyers prioritize and what motivates them, which is the subject of this survey.”
RCLCO’s report provides an in-depth look at what households are seeking in their ideal vacation or investment home – and the motivating factors and preferences for the ultra-luxury market segment; for households seeking specific locations including beach, lake, mountain, or city; and for those who are seeking branded residential product. The report delves into specific amenity preferences, and preferences for those who use a home as an investment property compared with a seasonal or vacation home.
Some of the key findings in the 88-page report include:
- Beach homes are the most sought-after vacation or investment property, with60% of survey respondents indicating this would be their top choice location. Other locations that scored highly included lake, mountain, and city residences.
- The investment potential of vacation homes is an important factor, with 63% of respondents expecting the property to appreciatemeaningfully and/or to generate a meaningful rental income stream. Nearly 65% of respondents intend to rent their property out at least some of the time, with a professional management service the most popular approach (27%) followed by an online platform such as AirB&B, VRBO, or HomeAway (24%).
- Sustainability is important to all respondents, but even more important to the ultra-luxury set of respondents earning $500,000 or more a year. While 39% of all respondents found sustainability “very important,” over 61% of the ultra-luxury respondents indicated the same. Notably, the ultra-luxury respondents care less about financial incentives of sustainability, with 43% willing to pay more for environmental benefits alone; while respondents earning less than $500,000 annually care more about financial payoffs such as lower utility bills or tax breaks.
- For those looking to buy a home, a majority (61%) would prefer a move-in ready home which they would be able to enjoy immediately. A smaller share (26%) are interested in a semi-custom home where they may pick from a set of plans with customization and finish options, while the remainder (13%) would prefer to design a custom home working with an architect, which results in more customization but takes longer.
Existing RCLCO clients can obtain a complimentary copy of the report by contacting their project leads, or Kelly Mangold at kmangold@rclco.com. Non-clients can purchase the report for US $495 at this link: https://www.rclco.com/publication/rclco-2024-vacation-and-investment-home-survey-report/
About RCLCO
RCLCO is the “first call” for real estate developers, investors, the public sector, and non-real estate companies and organizations seeking strategic and tactical advice regarding property investment, planning, and development. Our team leverages quantitative analytics and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. With the insights and experience gained over 55 years and thousands of projects, RCLCO brings success to all product types across the United States and around the world. RCLCO has offices in Austin, Denver, Los Angeles, New York, Orlando, and Washington, DC, and offers an array of consulting services across real estate economics and management consulting.
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