Research article

The trends shaping the second home market today

17 September 2018

Abstract

From technological disruption to the return of Spain, these are the trends that characterise the second home market today

The market for second homes expanded rapidly in the early 2000s, fuelled by readily available credit and an expanding tourist sector. Low cost airlines opened up previously unserved regions to buyers, especially the British, who drove the market in those years. When the GFC hit, national housing markets suffered, personal finances were squeezed, and demand for second homes fell.

In recent years growth has resumed, but the sector looks very different to how it did before the GFC. These are the trends that characterise the second home market today:

FIGURE 1 | The focus is now on income Intended use of property at time of purchase
_{Source: Savills World Research & HomeAway}

FIGURE 2 | The lower end of the market is expanding Sales of smaller and cheaper properties have grown since 2013
_{Source: Savills World Research & HomeAway, based on our survey sample}