The Luxury Second Home Market in 2022

The country’s housing market is in a downturn as interest rates have skyrocketed and inflation has risen to record levels. However, the demand for luxury second homes is still thriving, according to Pacaso’s latest report on the top vacation home destinations in the country for 2022.

Current Housing Market Trends

Using mortgage rate lock data and average second-home prices by real estate analytics firm Optimal Blue, the fractional real estate company ranked this year’s most sought-after spots that saw significant annual gains for homes priced above $1 million. While last year’s report showcased an oceanfront county in Florida, this time around, it’s the endless mountain views that have won buyers over.

Top Luxury Second Home Destinations

Highlight: Washington County, Utah

Utah’s Washington County is the big winner, with an average second home price of $1.37 million and a 10.3% increase in mortgage rate locks year-over-year. This region, characterized by red-rock canyons and towering mountains, is located in the Beehive State’s southwesternmost county bordering Nevada and Arizona. Residents enjoy proximity to breathtaking Zion National Park, Snow Canyon State Park, Bryce Canyon National Park, and the Grand Canyon. The year-round dry climate in Washington County continues to be a draw for vacationers seeking scenic hiking trails, adventurous rock climbing, and top-notch golf. Additionally, Las Vegas is only a couple of hours away, offering easy access to high-quality shopping, dining, and entertainment.

According to Austin Allison, CEO and co-founder of Pacaso, “Washington County, Utah, was at the top of the list. While Zion National Park has long put the county on the map as a top travel destination, we hadn’t seen many luxury second home purchases here in previous years. Nevertheless, buyers’ pandemic-altered lifestyles have led them to reevaluate their priorities, allowing them to find a home at a price that suits them, close to nature and outdoor activities.”

Highlight: Osceola County, Florida

Second on Pacaso’s list is Florida’s Osceola County, located just south of Orlando in the central part of the state. Known as the Gateway to the Everglades, this area, home to Kissimmee, attracts second-home buyers with family-friendly amenities such as theme parks as well as excellent dining, shopping, and golfing options. Furthermore, the proximity to Florida’s beautiful Atlantic coast beaches enhances its appeal. Pacaso’s report indicates that the average home price in Osceola County this year was $1.65 million, accompanied by a 6.1% increase in mortgage rate locks.

Highlight: Nevada County, California

Nevada County in California takes the bronze medal, offering an escape for winter sports enthusiasts. Located in the Sierra Nevada Mountains and near Lake Tahoe, this county recorded an average home value of $1.64 million in 2022, with a 4.5% increase in mortgage locks.

Other notable mentions on Pacaso’s list of the most popular second home markets in 2022 include California’s Napa County (No. 5), Hawaii’s Kauai County (No. 6), and New York County (Manhattan) at No. 9.

Explore Pacaso’s full report here.