No one's buying vacation homes
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Demand for second homes is at its lowest in data going back to 2018, Redfin reports.
Why it matters: Vacation homes are losing their luster.
Homeownership costs have soared, and cities are cracking down on short-term rentals.
- Plus, fewer people can work remotely from their beach house or ski chalet these days.
By the numbers: U.S. homebuyers took out around 86,600 mortgages for second homes last year, per Redfin's analysis of Home Mortgage Disclosure Act data.
- That's down roughly 5% from a year earlier and 66% from the pandemic homebuying frenzy.
Zoom in: Demand has particularly cratered in Florida as climate-related housing costs swell.
- Mortgages for second homes fell from the previous year in 30 of the 50 most populous metros, led by Miami (-32%), Orlando (-28%) and Fort Lauderdale (-28%).
The big picture: Home sales are sluggish overall, with many shoppers sidelined by high prices, elevated mortgage rates and economic uncertainty.
- Second-home mortgages represented less than 3% of all mortgage originations in 2024 — a record low, per the real estate site.
Reality check: Even wealthy cash buyers are watching their wallets.
- "They are much more likely to make a lowball offer or request concessions than they used to be," Florida agent Lindsay Garcia said in the report.
The intrigue: Travelers may be cooling on second homes, too.
- Budget-conscious guests appear to be delaying or canceling stays at Airbnbs and other rentals, according to analytics firm AirDNA.
What's next: Skipped getaways, slashed wedding budgets, dropped dinner plans — call this the summer of strategic spending.
