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Log outSecond-Home Mortgages Rise for the First Time in Four Years
Key Takeaway ๐
- Second-home mortgage demand is recovering, but the improvement is narrow and wealth-driven. The market remains far below its pandemic peak, making local demand, total ownership costs and realistic rental assumptions more important than the national growth rate alone.
U.S. homebuyers took out 4.1% more mortgages for second homes in 2025 than in 2024, marking the first annual increase in four years. The rebound outpaced the 1% rise in primary-home mortgages, but it remains modest compared with the pandemic-era vacation-home boom.
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The rebound started from a very low base
Redfin analyzed Home Mortgage Disclosure Act data covering purchases of second homes, primary residences and investment properties from 2018 through 2025. Second-home mortgage originations had declined each year after peaking in 2021 before turning positive in 2025.
Part of the increase reflects a base effect. Second-home purchases had fallen to roughly half of their pre-pandemic level in 2024, so even a small improvement in demand was enough to create the first annual gain since the boom. The market is recovering from a low point, not returning to pandemic-level activity.
Demand For Second Homes Ticked Up in 2025
Number of U.S. mortgage originations for second homes, by year
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Affluent buyers are driving the recovery
High earners received 85.2% of second-home mortgages in 2025, and their median income was $294,000. The typical second home was valued at $515,000, compared with $395,000 for a primary residence. Those figures help explain why second-home activity can improve even while affordability remains difficult for many first-time and primary-home buyers.
The market was also concentrated by age and race. Buyers ages 45 to 64 accounted for 58.7% of second-home mortgages, while 81.5% went to white borrowers. These figures describe who received mortgages in the HMDA data; they do not include vacation homes purchased entirely with cash.
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Second-home loans remain a small share of the market
Second-home mortgages represented 2.7% of all mortgage originations in 2025, only slightly above 2.6% in 2024 and well below the 5.1% peak in 2021. Primary-home buyers accounted for 87.7% of originations, while investment properties represented 9.6%.
Elevated mortgage rates and record home prices continue to limit demand. Remote-work flexibility has also declined as more employees return to offices, while cooling long- and short-term rental markets have made the potential income from a vacation property less attractive.
| Metro-level summary: Mortgages for second homes, 202550 most populous U.S. metros. HMDA data. | ||||
| U.S. metro area | Second-home mortgage originations | Second-home mortgage originations, YoY change | Share of total mortgage originations that were for second homes | Median value of second homes |
| Anaheim, CA | 364 | -8.5% | 2.3% | $1,675,000 |
| Atlanta, GA | 645 | -3.2% | 0.9% | $455,000 |
| Austin, TX | 387 | 3.5% | 1.2% | $545,000 |
| Baltimore, MD | 289 | 21.4% | 1.0% | $595,000 |
| Boston, MA | 531 | 22.6% | 1.4% | $885,000 |
| Charlotte, NC | 531 | 2.9% | 1.3% | $495,000 |
| Chicago, IL | 543 | 13.6% | 0.8% | $415,000 |
| Cincinnati, OH | 216 | 19.3% | 0.8% | $355,000 |
| Cleveland, OH | 138 | 5.3% | 0.6% | $315,000 |
| Columbus, OH | 213 | 9.2% | 0.8% | $425,000 |
| Dallas, TX | 457 | -3.4% | 0.7% | $475,000 |
| Denver, CO | 555 | 16.1% | 1.4% | $665,000 |
| Detroit, MI | 95 | 1.1% | 0.6% | $275,000 |
| Fort Lauderdale, FL | 495 | 1.2% | 3.0% | $605,000 |
| Fort Worth, TX | 198 | 9.4% | 0.7% | $445,000 |
| Houston, TX | 933 | -11.1% | 1.1% | $405,000 |
| Indianapolis, IN | 276 | 26.6% | 0.9% | $375,000 |
| Jacksonville, FL | 612 | 4.8% | 2.5% | $485,000 |
| Kansas City, MO | 222 | 6.2% | 0.8% | $395,000 |
| Las Vegas, NV | 749 | -20.9% | 2.7% | $515,000 |
| Los Angeles, CA | 412 | -19.8% | 1.0% | $1,350,000 |
| Miami, FL | 366 | -10.5% | 2.1% | $885,000 |
| Milwaukee, WI | 144 | 0.0% | 0.9% | $425,000 |
| Minneapolis, MN | 503 | 10.5% | 1.1% | $465,000 |
| Montgomery County, PA | 103 | 28.8% | 0.5% | $620,000 |
| Nashville, TN | 425 | -2.5% | 1.5% | $550,000 |
| Nassau County, NY | 704 | 10.3% | 3.2% | $1,915,000 |
| New Brunswick, NJ | 1060 | 13.0% | 4.6% | $1,045,000 |
| New York, NY | 888 | 8.4% | 1.7% | $975,000 |
| Newark, NJ | 255 | 5.4% | 1.4% | $415,000 |
| Oakland, CA | 96 | -1.0% | 0.5% | $995,000 |
| Orlando, FL | 911 | -14.5% | 2.7% | $445,000 |
| Philadelphia, PA | 103 | -17.6% | 0.6% | $355,000 |
| Phoenix, AZ | 2033 | 9.8% | 3.2% | $545,000 |
| Pittsburgh, PA | 183 | 5.2% | 0.8% | $290,000 |
| Portland, OR | 260 | 4.8% | 1.0% | $575,000 |
| Providence, RI | 377 | 12.9% | 2.5% | $895,000 |
| Riverside, CA | 1464 | 2.7% | 3.8% | $675,000 |
| Sacramento, CA | 470 | 7.1% | 2.0% | $800,000 |
| San Antonio, TX | 430 | 5.1% | 1.3% | $345,000 |
| San Diego, CA | 440 | 21.5% | 2.1% | $1,270,000 |
| San Francisco, CA | 143 | 9.2% | 1.7% | $1,315,000 |
| San Jose, CA | 84 | 5.0% | 0.8% | $1,505,000 |
| Seattle, WA | 312 | 17.7% | 1.1% | $835,000 |
| St. Louis, MO | 293 | -1.3% | 0.9% | $325,000 |
| Tampa, FL | 1107 | -13.8% | 2.6% | $425,000 |
| Virginia Beach, VA | 397 | -7.5% | 1.6% | $555,000 |
| Warren, MI | 278 | 2.6% | 1.0% | $385,000 |
| Washington, DC | 449 | 6.4% | 0.9% | $645,000 |
| West Palm Beach, FL | 836 | 1.2% | 5.5% | $695,000 |
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Vacation-home demand varies sharply by location
Second-home loans had their largest share in West Palm Beach, where they made up just under 6% of 2025 mortgage originations. New Brunswick, New Jersey, which includes the Jersey Shore, followed at 4.6%, and Riverside, California, which includes Palm Springs, ranked third at 3.8%.
Originations increased in 35 of the 50 largest U.S. metros, but the fastest growth did not always indicate a large vacation-home market. Montgomery County, Pennsylvania, rose 28.8% and Indianapolis rose 26.6%, yet second homes remained less than 1% of mortgages in both places. Las Vegas, Los Angeles and Philadelphia posted the largest declines.
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What prospective second-home buyers should consider
The pickup suggests that financially flexible buyers are re-entering selected vacation markets, not that second homes have become broadly affordable. A buyer should compare the full carrying cost, including the mortgage payment, property taxes, insurance, maintenance, travel and potential vacancy.
Expected rental income should be evaluated conservatively because local restrictions, seasonality and softer rental demand can change the economics. Financing terms and property-use requirements should also be confirmed with the lender before making an offer.
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