More than one-sixth of single-family construction takes place in second home areas, according to an analysis by the NAHB. The count for second homes across the country stands at 6.5 million, or 4.6% of the total housing stock, with 17.5% of single-family construction activity allocated to second homes, according to the NAHB.
For this analysis, a second home area is a county that has a second home share greater than 10.3% of the county’s total housing stock (these counties fall within the 75th and above percentile of the second home stock share distribution).
Single-family permit data shows that the market share for construction in second home areas has grown by over four percentage points in the past nine years. The earliest data, which is the fourth quarter of 2015, shows that second home areas had a market share of 13.2%. As of the second quarter of 2024, the market share for this geography increased to 17.5%.
Second home areas have averaged a growth rate of 9.1% between the fourth quarter of 2015 and the second quarter of 2024, while non-second home areas averaged a growth rate of 5.1% over the same period.
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