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Business Observer Friday, Nov. 8, 2019 1 week ago

Home sweet (vacation) home

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Annual real estate report reveals higher demand for second homes, increasing prices

Collier County, home to two cities — Naples and Marco Island — with some of the priciest real estate in the region, state and even country in some cases, is unsurprisingly nestled snugly in a National Association of Realtors report on the places with the most expensive vacation homes in the country.

Collier was ranked No. 11 in the report’s top 25 most expensive vacation home counties in 2018, with a median vacation home value of $334,709. The only other Florida county that made the list was Monroe County, in the Florida Keys, which ranked No. 5, with a median vacation home value of $477,136.

The island of Nantucket in Massachusetts was ranked No 1, with a median vacation home value of $1 million.

Data in the report also shows that increased financial wealth and low mortgage rates have boosted demand for vacation homes nationwide, which caused a spike in prices.

Over a five-year period — from 2013 to 2018 — the median sales price in vacation home counties increased at a slightly higher pace (36%) compared to the pace of increase of all existing and new homes sold (31%), according to a news release from the Florida Association of Counties. Median price increases occurred in both expensive and inexpensive areas.

The figures are telling, especially when compared to data from 10 years prior, NAR Chief Economist Lawrence Yun says. “As of 2018, household net worth reached an all-time high of $100.3 trillion — that’s nearly double from a decade ago when wealth declined during the recession,” he says in the release. “Some of this tremendous growth in wealth, although concentrated, increased demand for vacation homes.”

Priciest vacation home counties

Location                  Median price 

Nantucket, Mass.     $1 million

Pitkin, Colo.            $710,443

Eagle, Colo.            $636,525

Summit, Colo.        $577,663

Monroe County           $477,136

Dukes, Mass.          $450,000

Mono, Calif.           $421,078

Grand, Colo.           $385,047

Chaffee, Colo.         $349,148

Park, Colo.              $336,453

Collier County            $334,709

Source: National Association of Realtors Research Group

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