Trends in Vacation Home Purchases Over Time

Vacation home purchases fell by nearly two-thirds from 2021 to 2025 amid soaring prices and mortgage rates

Source: SellMyTimeshareNow analysis of FFIEC’s Home Mortgage Disclosure Act data | Image Credit: SellMyTimeshareNow

The U.S. vacation-home market has contracted sharply since its pandemic-era peak, reversing a surge driven by historically low borrowing costs and increased demand for remote-friendly living. Vacation-home purchases using a mortgage fell from 257,549 units in 2021 to just 88,158 in 2025, a decline of 65.8%. Similarly, the vacation-home share of total mortgage originations fell from 4.9% in 2021 to 2.6% in 2025. These drops followed a period when second-home demand expanded rapidly, particularly in resort markets and lower-density areas.

The decline aligns with a rapid deterioration in affordability. Mortgage rates rose significantly from pandemic-era lows, increasing borrowing costs and reducing purchasing power, even for higher-income households that typically drive second-home demand. At the same time, home prices in the U.S.—including many vacation-oriented markets—remained elevated, limiting the ability of buyers to re-enter the market after the initial pandemic surge. Taken together, these conditions appear to have significantly reduced the pool of buyers able or willing to purchase vacation homes outright. The scale and speed of the decline suggest that the vacation home segment—often more sensitive to financial conditions than primary housing—has been particularly affected by the post-pandemic economic conditions.

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U.S. Cities Where Vacation Home Demand Has Declined the Most
U.S. Cities Where Vacation Home Demand Has Declined the Most
The pandemic-era vacation-home boom appears to be unraveling. A new analysis found that U.S. vacation-home purchases financed with a mortgage fell 65.8% between 2021 and 2025, dropping from 257,549 purchases to just 88,158 nationwide. Because vacation homes are typically discretionary purchases, the category can also act as a leading indicator for broader economic conditions. Sharp declines in second-home buying may reflect changing consumer confidence, affordability pressures, and reduced financial flexibility—even among higher-income households that traditionally drive resort and leisure real estate markets. The report examines where second-home demand has declined the most across the country, ranking states and metro areas based on the change in vacation-home mortgage originations since the height of the pandemic housing boom. 1 min