Industry News

Priced out of paradise: Second-home market impacts locals

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Editor's note: The second-home or vacation-home market is a booming niche that's vastly different than the market for primary homes. Many foreign buyers are playing a larger role in second-home purchases in the U.S., while many domestic buyers are crossing the border for their second homes. In this three-part series, we examine the fast evolving second-home market, looking at the trends of foreign buyers coming to the U.S., U.S. buyers looking outside the borders, and how booming second-home markets impact affordability for everyone else. (See Part 1: Florida says 'cheerio,' 'hola' to international real estate buyers and Part 3: Baby boomers spark second-home surge abroad.) When Roy Flanders moved to Nantucket, Mass., in 1975, the population was mostly "a bunch of old hippies writing stories and painting paintings," living on $200 a month. As recently as 10 years ago, an entry-level home cost around $200,000. Flanders, a Realtor with Pro Buyer Associates of Nantucket, said t...