The U.S. second-home market continued to cool in 2024, reflecting broader affordability pressures and shifting lifestyle patterns among American homebuyers. According to newly released mortgage data, buyers took out 86,604 mortgages for second homes nationwide, marking the lowest level since records began in 2018 and a 5 percent decline year over year.
While the slowdown is evident across the country, the Greater Boston region stands out for a different reason: second homes remain exceptionally expensive, even as overall demand softens.
Why Second-Home Purchases Are Declining
Several structural and economic factors are contributing to the accelerated decline in second-home mortgage activity compared to primary residences.
Higher price points. Nationwide, the median value of a second home reached $495,000 in 2024, significantly higher than the $385,000 median for primary residences. In addition, loan-level pricing adjustments introduced in 2022 increased fees for second-home mortgages, further raising the cost of ownership.
Discretionary nature of vacation homes. Unlike primary residences, second homes are typically non-essential. Persistent inflation throughout 2024 increased the cost of everyday necessities, prompting many households to postpone or abandon discretionary purchases. As housing costs remain elevated and market conditions normalize, second homes are often the first expense buyers eliminate.
Cooling rental economics. Many second-home buyers historically offset costs by renting properties short-term or seasonally. However, rent growth has leveled off in many markets, and the short-term rental sector has cooled from its pandemic-era peak. For investors, the math is no longer as compelling as it once was.
Return-to-office policies. During the pandemic, remote work fueled demand for vacation and secondary homes. As employers increasingly require in-office or hybrid schedules, many buyers now have less flexibility to use a second home regularly, dampening demand.
Greater Boston: Fewer Second Homes, Higher Prices
In the Greater Boston region, second-home mortgage activity remained modest in 2024:
- Second-home mortgage originations: 433
- Year-over-year change: +1.2%
- Share of all mortgage originations: 1.2%
- Median value of second homes: $835,000
Although the number of second-home mortgages ticked slightly higher year over year, second homes accounted for just over one percent of all mortgage originations in the region. The data underscores how limited and premium-oriented the second-home market is in and around Boston.
The $835,000 median value—well above the national second-home median—reflects the region’s constrained housing supply, proximity to coastal and historic communities, and continued demand from high-income buyers seeking weekend or seasonal residences.
What This Means for Buyers Relocating to Massachusetts
For individuals and families considering a move to Massachusetts, the data reinforces a clear trend: Greater Boston is not a bargain market for second homes, even as national demand cools. Buyers seeking affordability may need to look farther from the urban core or consider primary residences rather than secondary properties.
At the same time, limited second-home inventory and high price points suggest long-term stability for existing owners. For higher-net-worth households prioritizing lifestyle, proximity to culture, and strong property fundamentals, Greater Boston continues to hold appeal—albeit at a premium.
As economic conditions evolve and work patterns continue to shift, the second-home market is likely to remain selective, particularly in high-cost regions like Eastern Massachusetts.