What percentage of Americans own a second home? – Getting a second home is a sign of finally make it! Homeownership is something that is often pushed as part of the all American dream, to have a patch of land that is yours, to do with what you want!
So What Percentage of Americans Own a Second Home??
The thing is ‘owning a home’ isn’t necessarily owning as you have to borrow a huge sum of money in many cases to do so! Owning a second home is one step above that dream of having your own home, you are making a steady future for yourself, spreading your assets and moving up and up in this hard world. However you may just end up being in the position to borrow enough for two homes…. Not really owning any of them. You have just proved that you are in a good position to pay back the cash over the course of the next 20-30 years! Ouch.
Home ownership in the USA sits at just under 68%, surprisingly only a 5.6% growth since 1960 however the amount that people own of their home (equity) has been steadily falling with people now owning less than 50% of their home on average. That is a serious problem! Because equity (I believe) is the true measure of ownership.
But people owning a second home has grown. I can’t find solid stats (let me know if you know where I could get them). It seems to be around 6% of Americans but who knows what the equity level is in that stat! My guessing is it is pretty low.
So why own a second home if it’s just more debt strain? For some it’s a place to get away from it all, others want the security and some do manage to make it an investment, renting for more or equal to the mortgage!
I don’t think second home ownership should be an aim. I think home equity should be the aim. Once you have that first home then maybe you can think about the next one!
What do you think?
Thanks for reading.