Second‑Home Purchases Plunge 66% in the US as Timeshare Market Doubles

A sharp reset in the US vacation-home market

The real estate USA vacation-home market has shifted dramatically since the pandemic peak. Between 2021 and 2025, buyers who had been snapping up second homes during the low-rate era pulled back in force. Our analysis of SellMyTimeshareNow's review of FFIEC’s Home Mortgage Disclosure Act (HMDA) data and ARDA figures shows a clear pattern: mortgaged second-home purchases fell by 65.8%, while timeshare sales and rental income climbed sharply.

That matters because second-home demand is discretionary and therefore an early indicator of shifts in household cash flow, borrowing capacity, and leisure spending. For buyers, investors, and expats weighing purchases of vacation properties in the USA, this is not a small cyclical wobble. It is a structural change in how Americans pay for leisure access.

Where the numbers came from and what they show

SellMyTimeshareNow used HMDA data and ARDA industry reports to quantify activity from 2020 through 2025. Key figures that drive the narrative are:

• Second-home mortgage originations fell from 257,549 in 2021 to 88,158 in 2025 (a drop of 65.8%).
• The share of second homes in all mortgage originations fell from 4.9% to 2.6% over the same period.
• The national total change in second-home originations across states is -169,391.
• Median value of newly mortgaged second homes nationwide is $495,000; share of housing used for seasonal, recreational, or occasional use is 3.3%.

We trust HMDA and ARDA as primary sources for mortgage and industry activity. The data points show the same trajectory: large decline in outright second-home buying and a rebound in timeshare activity after pandemic lows.

Why second-home buying fell so far

There are several tightly related factors that explain the collapse in mortgaged purchases of vacation homes.

• Higher mortgage rates. Borrowing costs rose sharply after the pandemic-era lows, reducing purchasing power for discretionary buyers. Higher rates matter more for second homes because buyers rarely rely on tight budget financing; they expect carry costs and liquidity.
• Sustained price levels. Home prices in many resort and tourism markets remained elevated, which made the upfront capital requirement large compared with flexible alternatives.
• Financial sensitivity of discretionary purchases. Second homes are price elastic. When rates and prices move against buyers, demand can evaporate quickly.
• Shift to lower-capex alternatives. Consumers sought ways to access vacation accommodations without the large down payment and carrying costs.

Put bluntly: when mortgage costs rose and prices did not decline in line, many buyers paused or left the market.

Timeshares: the countertrend

While mortgage-backed second-home purchases were collapsing, the timeshare sector expanded. ARDA data reviewed by SellMyTimeshareNow shows:

• Timeshare sales volume rose from $4.9 billion in 2020 to $10.5 billion in 2024, a gain of 114.3%.
• Timeshare rental revenue climbed from $1.3 billion to $3.2 billion, up 146.2%.

Those are substantial gains. On the SellMyTimeshareNow marketplace in 2025, the United States led with 14,942 purchase offers, far ahead of second-place Mexico at 3,373 offers and Aruba at 1,598 offers. Within the U.S., the leading states for timeshare offers were:

• Florida: 3,506 offers
• Hawaii: 2,219 offers
• Nevada: 1,755 offers

Timeshares offer buyers and vacationers access to resort-style accommodations with far lower upfront cash and no mortgage obligation. They trade off ownership control and resale liquidity for affordability and predictable vacation access. From a cash-flow perspective, many consumers have chosen that trade.

States and metros: the biggest losers and the most active timeshare markets

The decline in vacation-home purchasing is uneven. Two patterns stand out:

1. High-volume states lost the largest absolute number of purchases.
2. Smaller, tourism-dependent states and some resort metros experienced the largest percentage declines.

Notable details:

• Florida recorded the largest absolute decline: -38,465 second-home purchases between 2021 and 2025. That reflects Florida’s outsized role in the pandemic-era boom.
• Nevada experienced the steepest percentage decline at -78.3%, followed by Hawaii at -77.8% and Wyoming at -74.5%.
• California saw 13,516 fewer purchases, Texas -9,900, and North Carolina -9,575 in absolute terms.

At the metropolitan level, sharp pullbacks include:

• Austin, TX: -80.4%
• Las Vegas, NV: -79.4%
• Orlando, FL: -79.4%
• Miami, FL: -78.8%

Resort towns tied to tourism also showed heavy falls: Breckenridge, CO (-63.9%), Naples, FL (-76.1%), and Kahului, HI (-85.2%). These locations are more sensitive because demand is largely discretionary and can swing with consumer confidence and borrowing conditions.

Washington State example (useful for regional buyers):

• Percentage change: -67.7%
• Total change: -3,399 second-home mortgages
• Second-home mortgage originations in 2025: 1,622 (down from 5,021 in 2021)
• Second-home share of originations: 1.9%
• Median value of newly mortgaged second homes: $685,000
• Share of housing used for seasonal use: 2.5%

Those state-level snapshots underline that buyers in some markets face much higher price and financing obstacles than in others.

What this means for buyers, investors and expats

We view the market shift as consequential and actionable. Here’s how different market participants should read these developments.

Buyers and holiday homeowners:

• If you planned to buy a second home for personal use, expect tighter affordability. Higher mortgage rates and elevated prices mean monthly carrying costs will be higher than in 2021. Re-run your cash-flow scenarios using current market-rate mortgages and conservative occupancy or rental assumptions.
• Consider flexible alternatives: timeshare ownership, fractional ownership, or long-term rental options can deliver vacation access with lower upfront cash and no mortgage interest exposure.

Investors considering buy-to-let vacation properties:

• The decline in second-home purchases can reduce competition for listings, which could create selective buying opportunities in markets where fundamentals remain strong. But be wary: demand for short-term rentals depends on tourism flows and regulatory regimes.
• Run yield calculations that include maintenance, management fees, vacancy risk, and higher financing costs.