3 Most (and Least) Popular Cities for Buying a Vacation Home

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Vacation homes aren’t as popular as they used to be. Overall, demand sharply declined as housing costs increased, but some cities have fared better than others.

Specifically, demand for vacation-home mortgages tumbled 40% in 2023, according to research from Redfin. This marks an even more significant decrease — 65% — from 2021, the peak of the pandemic-era real estate surge.

An early look at 2024 data revealed vacation home sales still haven’t bounced back. However, mortgages for primary homes aren’t down nearly as much — 20% from 2023 and 35% from 2021.

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It’s worth noting that a typical second home was valued at $475,000 in 2023, compared with $375,000 for primary homes. Beyond that, the federal government increased loan fees for second homes in 2022, making the cost of purchasing one more expensive.

Of course, certain U.S. cities are still popular with buyers looking for second homes, while other spots aren’t on too many radars. Here’s a look at the three most and least popular cities for buying a vacation home, according to recent Redfin data of the total number of second-home mortgage originations.

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Least Popular — Montgomery County, Pennsylvania

• Second-home mortgage originations: 91

• Second-home mortgage originations year-over-year change: -32.1%

• Share of total mortgage originations for second homes: 0.5%

• Median value of second homes: $510,000

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Least Popular — Detroit

• Second-home mortgage originations: 73

• Second-home mortgage originations year-over-year change: -32.4%

• Share of total mortgage originations for second homes: 0.5%

• Median value of second homes: $245,000

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Least Popular — San Jose, California

• Second-home mortgage originations: 69

• Second-home mortgage originations year-over-year change: -35.5%

• Share of total mortgage originations for second homes: 0.7%

• Median value of second homes: $1.3 million

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Most Popular — Riverside, California

• Second-home mortgage originations: 1,566

• Second-home mortgage originations year-over-year change: -47.1%

• Share of total mortgage originations for second homes: 4%

• Median value of second homes: $655,000

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Most Popular — Tampa, Florida

• Second-home mortgage originations: 1,618

• Second-home mortgage originations year-over-year change: -41.5%

• Share of total mortgage originations for second homes: 3.6%

• Median value of second homes: $425,000

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Most Popular — Phoenix

• Second-home mortgage originations: 2,001

• Second-home mortgage originations year-over-year change: -46.5%

• Share of total mortgage originations for second homes: 3.2%

• Median value of second homes: $535,000

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This article originally appeared on GOBankingRates.com: 3 Most (and Least) Popular Cities for Buying a Vacation Home