The 2nd home market is on the verge of a collapse.
In the 1970s and 1980s, real estate values shot upward – invest in anything and it would go up in value due to the huge influx of 20 and 30 somethings from the Baby Boom. Older members of that demographic bought 2nd or vacation home properties – sometimes used by themselves or shared with family, or eventually rented out at vacation destinations.
In the 2000s, the creation of AirBnb and VRBO provided away to turn 2nd homes into income properties.
After 2000, “remote work” became a reality with up to 20% today (versus 6% pre-Covid) doing at least some work remotely. Since then, however, many employers have instituted a “return to office” policy – even if not fully back in office, many now require workers to be in the office a few days per week. Living remotely in a vacation home is no longer a viable option.
Separately, the Baby Boom is long over. 90% of the Baby Boom is either now retired or deceased (15-20%). By 2035, about half of the Baby Boom will have passed away.
The era of AirBnB and VRBO may also be coming to an end – as short term rental prices of gone up a lot, and excessive fees and duties of renters (cleaning, plus pay $200 cleaning fee) are discouraging use of short term rentals. Many communities have banned short term rentals, put limits on total days rented, or required an owner to be present during the retnal – or charge significant fees to property owners.
Younger generations do not see the point of sinking lots of assets into a 2nd home that may not produce future returns on investment.
The effect of the above is that the 2nd home market may be on the verge of collapse. Take a look at Sunriver, Oregon, as shown on the Zillow map in July of 2026. Everything is for sale.
Sunriver, Oregon
With younger generations not interested just as all these homes go on the market, vacation properties like these seem likely to drop sharply in value.
Eagle Idaho
Good point
Tons and tons of “experts” and reporters still have no idea of the age range of Gen Z and make some ridicules pronouncements about Gen Z activities.
