Vacation Condos Outpace Second Homes
If the real estate cooldown has affected luxury vacation rentals, one would see it least in the condominium market. While the sale of vacation homes fell 31 percent, the sale of vacation condos rose 8 percent. A recent article in the Wall Street Journal examined this new trend and offered some explanation.
The article cited three primary reasons for the shift from stand-alone houses to condominiums:
1) Affordablility - In markets like Hawaii, $1 million will only get you a condo. Forget about buying a beachside villa at that price.
2) Maintenance - For many Baby Boomers, the thought of mowing lawns and cleaning gutters reminds them of the 40 years they spent saving for retirement. And for absentee owners, the chores of upkeep take away from the joys of vacation. Condos offer easy, maintenance-free living.
3) Style - Urban living is fun again, and condos carry that sense of a hipness and simplicity. New villages that recreate that sense of downtown living - even in the suburbs - are becoming increasingly common.
