A recent survey of people who own vacation houses finds that most buy them for pleasure, not as an investment, and that three-quarters never rent them out.
The survey, conducted by Opinion Research Corporation for Chase Manhattan Personal Financial Services, also found that most people buy near water. Forty-six percent said their property is near a beach and one-third locate near a lake.
Not surprisingly, the warm, sunny South is preferred by most Americans – 47 percent of vacation houses are in the South, primarily in Florida.
“The Florida market is very attractive to people all over the country,” said Brent Feigenbaum, spokesman for Chase Manhattan.
But few people buy with retirement in mind; only 6 percent said they planned to retire to their vacation home someday.
The percentage of people owning vacation homes hasn’t changed much in recent years – about 7 percent of Americans are owners. And although most are seeking a getaway when they buy, their busy lives interfere with the best of plans; 31 percent use the vacation house just once a year. On average, though, vacation homeowners spend 26 days annually at the property.
While 1 percent of the vacation homeowners surveyed estimate their property is worth more than $1 million, most vacation homes tend to be modest. The survey found 35 percent of the houses have an estimated worth of $50,000 or less, 18 percent are between $50,000 and $100,000 and 15 percent between $100,000 and $200,000.
The median value of vacation houses nationally – excluding timeshares – is $83,000, the survey found. Timeshares, by contrast, have a median value of only $31,000.
Feigenbaum said the market for more expensive vacation houses “has picked up a lot all over the country. We’re seeing a real upturn on the high end.”
Timeshares are not too popular, the survey found; 26 percent of vacation homeowners have such agreements, while 74 percent own a house or apartment by themselves or with other family members or friends.
One-fifth of vacation homeowners told the surveyors they don’t know how much their house is worth. Since vacation properties turn over slowly in most areas and substantial numbers are passed down in families, that’s not too surprising.
While higher-income families own the majority of vacation homes, almost one-fifth are owned by people with household incomes of $35,000 or less, a category that probably includes substantial numbers of timeshares, inheritances and retired people.
Interestingly, less than 30 percent of vacation homeowners had children in the household; the vast majority had none left at home, in part because of their average age – about 60 percent of vacation homeowners are 45 or older.
The most popular spots for vacation homes by region are:
– South: Florida (39 percent); the Texas coast (7 percent); Blue Ridge, Ozark and Appalachian mountains (5 percent)
– West: Southern California (17 percent); Aspen, Vail or Denver (13 percent) and Lake Tahoe, Squaw Valley (10 percent)
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– Midwest: Upper Peninsula of Michigan (16 percent); Wisconsin Dells (12 percent); Minnesota lakes (8 percent).