Vacation-home mortgages post first annual gain since 2021
“Today’s second-home buyers tend to have the financial flexibility to make a big, discretionary purchase even in an expensive housing market, while many would-be buyers of primary homes are sidelined by high costs. Vacation homes are less appealing for regular Americans than they were during the pandemic because mortgage rates are much higher now and rentals are less lucrative.”
Wealthy buyers have been pushing US home prices to all-time highs even as most Americans remain priced out, a two-speed dynamic that is now visibly reshaping the vacation-home segment as well.
Where second-home demand is strongest
West Palm Beach, Florida led all major metros, with second-home mortgages accounting for just under 6% of all loan originations in 2025, reflecting the city’s status as a snowbird destination and a major driver of the nation’s luxury market.
The New Brunswick, NJ metro, which covers the Jersey Shore, ranked second at 4.6%, followed by Riverside, CA — the Palm Springs area — at 3.8%. All three markets posted year-over-year gains, with New Brunswick recording the sharpest increase at 13%.
Mortgage Professional America · Redfin / HMDA
Where vacation-home mortgages are most and least common
Second-home mortgage share, year-over-year change, and median second-home value — 50 most populous U.S. metros, 2025
| Year | YoY change | Share of all mortgages | Context |
|---|---|---|---|
| 2021 | Pandemic peak | 5.1% | Record high share |
| 2022 | −42% | — | Largest single-year drop |
| Metro area | Share of all mortgages |
YoY change | Median second- home value |
|---|---|---|---|
| 5 Metros with the highest share | |||
| West Palm Beach FL | 5.5% | +1.2% | $695,000 |
| New Brunswick NJ (Jersey Shore) | 4.6% | +13.0% | $1,045,000 |
| Riverside CA (Palm Springs) | 3.8% | +2.7% | $675,000 |
| Nassau County NY | 3.2% | +10.3% | $1,915,000 |
| Phoenix AZ | 3.2% | +9.8% | $545,000 |
| 5 Metros with the lowest share | |||
| Oakland CA | 0.5% | −1.0% | $995,000 |
| Montgomery County PA | 0.5% | +28.8% | $620,000 |
| Cleveland OH | 0.6% | +5.3% | $315,000 |
| Detroit MI | 0.6% | +1.1% | $275,000 |
| Philadelphia PA | 0.6% | −17.6% | $355,000 |
