There’s often an overlap between strong resort and strong second-home communities, but they aren’t the same thing. Second homeowners interact with the economy differently than tourists, providing direct tax benefits to their host towns, typically with fewer expectations and demands on municipal services. That’s not to say there aren’t other consequences, however. For example, second home proliferation could explain the reduced availability of average-priced homes on the Cape, and potentially the displacement of year-round residents.
This edition of BART examines seasonal home trends over and across time and place, highlighting some economic implications of having a seasonally fluctuating population.
During the 200 years leading up to 1940, second home ownership tended to be reserved for wealthier families. This trend shifted after the Second World War. A stronger domestic economy combined with lower home prices removed barriers to second-home ownership. Nationally, per capita GDP (inflation adjusted) correlates strongly (97%) with the increase in the ownership of second homes between 1940 and 2010. During the same time, affordable vacation homes were heavily marketed to the increasingly mobile middle class. The result was a near five times increase in seasonal and recreational home ownership.
To understand the local trends in seasonal homes and what it means for the Cape’s economy, we need to understand the context in which Cape came to be a second home destination and where we stand in comparison to other regions.
The five tabs below will walk you through trends at the national and regional levels, helping you answer questions such as:
Answers to these questions have socio-economic implications for the region, towns and even neighborhoods. You will find answers to these questions in the tabs below. Click on the US States tab to see how Massachusetts has stacked up over time.
Next: US States
Data sources: Moody's Analytics, US Census Bureau, Census of Housing
