High-end homeowners are snapping up second, third and even fourth homes at an increasing rate, a new study from Architectural Digest magazine and Sotheby’s International Realty found.
The magazine, which commissioned the study to look at trends among its affluent readers, found that 1 in 3 of its subscribers plan to buy a second home within the next two years. Nearly 50 percent of subscribers who already own three or more homes, plan to buy a fourth home within two years.
In the Washington region, where the median household income of an Architectural Digest reader is about $140,000, real estate agents are seeing an increase in second and third home purchases as Washington’s affluent baby boomers reach retirement.
“People are looking for second homes,” said Jennifer Wellde of Long & FosterRealtors. “They might be downsizing from a big family house in Potomac to a place at the Ritz-Carlton condos and then getting a home in Florida, Wyoming … even some places as far flung as the south of France or Italy. It’s pretty diverse. And it really comes from the affluence of the baby boomers.”
Wellde, who primarily lists multimillion-dollar homes, said nearly half of her clients own second homes.
The Architectural Digest study found that 38 percent of Washington-area readers are likely to own two or more homes and 15 percent are likely to own three or more homes.
The report’s findings are in sync with national figures. A recent study by the National Association of Realtors found that the second-home market is dominated by the baby boom generation, with 6 in 10 respondents saying they own two or more homes.
“Middle-aged, middle-income households are the driving factor in the second-home market, with favorable demographics providing a solid fundamental demand in this sector for the next decade,” said David Lereah, NAR’s chief economist, when the report was released. “Boomers believe in diversifying their assets, and most second-home owners see their purchase as being a better investment than stocks. A surprising majority of survey respondents hold multiple properties and they are interested in purchasing additional homes.”
