By 2015, 20 percent of American
households will own two or more
homes. But changing market conditions
will require 2nd home
specialists to change their ways.
"In the past four years, if you
wanted to make money selling
real estate, you just had to show
up and present yourself well.
Houses just sold themselves,"
says Peter Francese, demographics
and marketing expert. "But the
more the market cools, the greater
the need to understand the fundamentals
of target marketing."
Two factors drive the 2nd-home
boom:
· Demographics (householders
aged 55 to 64 are the fastest-growing
segment of the U.S. population).
· And wealth – both inherited,
and made in the 90s economic
boom.
Francese is demographics editor
for Economy.com and the founder
of American Demographics magazine.
He's been right on the
money predicting and analyzing
the 2nd home boom.
Boom will keep rolling
Americans own about 6.5 million
2nd homes now, and
Francese predicts that in just five
years, that number will balloon 50
percent to 10 million. "The fastest
growing age group is 55-64, and
they're more affluent than ever.
Aging baby-boomers are driving
this phenomenon, and they're
now 41-59 years old." Four million
of them will turn 55 each year
– for at least the next 10 years.
"And they have an almost infinite
ability to make and spend
money."
So, there'll be continued strong
demand for 2nd homes. The number
of households that can afford
a 2nd home is growing at two to
three times the rate of all households.
U.S. Census data released
in late August shows the concentration
of wealth is accelerating.
"The top 20 percent of households
take home 50.1 percent of all
income earned in the U.S. That
group that is becoming wealthier
and wealthier is driving growth
in the sales of very expensive 2nd
homes."