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Second-home mortgages rose in 2025 for first time in four years
Second-home loans still make up only about 3% of all home loans, and most 2025 vacation-home mortgages went to high earners with near-$300,000 median income.
U.S. homebuyers increased borrowing for second homes in 2025, taking out 4.1% more vacation-home mortgages than in the prior year, according to a Redfin analysis of HMDA data covering 2018 to 2025. The rise marked the first annual increase in four years, after declines from the pandemic-era peak.
By comparison, mortgages for primary homes rose 1% year over year in 2025, after a 2% increase in 2024. Even with the uptick, second-home mortgages remain a small slice of the market, accounting for just 3% of all home loans.
Redfin attributed the rebound to stronger activity among affluent buyers, who are less constrained by current high housing costs and economic uncertainty. The report also points to a base effect, saying that purchases fell to about half of pre-pandemic levels in 2024, leaving more room for growth.
The analysis further shows that second-home buyers are generally wealthier than primary-home borrowers: 85% of 2025 vacation-home mortgages went to high earners with a median income just under $300,000, versus a median overall U.S. household income of $88,000. It also notes that the typical second home was worth $515,000 in 2025, compared with $395,000 for primary homes, and that overall demand for second homes is still limited because they are not a necessity and higher prices and rates cooled the housing market after 2022.