News Mortgage News Vacation Homes Become More Common in Pandemic Off the Charts: The Visual Says It All By Rob Anthes Rob Anthes Twitter Rob Anthes uses his economics degree and a love of spreadsheets to shed light on how this era of rapid change affects your finances. A journalist for more than 14 years, he was managing editor at New Jersey-based Community News Service before tackling inflation and the student loan debate as a reporter for The Balance. learn about our editorial policies Updated on September 23, 2021 Fact checked by Julianne Slovak Fact checked by Julianne Slovak Julianne Slovak has been immersed in mutual funds and financial services for decades, working as chief of reporters for Fortune magazine and at Capital Group and Citibank before joining The Balance. She has earned degrees from Princeton, Stanford, and Harvard, studying topics like the history of financial crises. learn about our editorial policies Photo: Thomas Barwick/Getty Images Buying a vacation property became increasingly popular as people looked for somewhere—anywhere—to get away amid the pandemic. Vacation homes accounted for 5.5% of existing home sales in 2020 and 6.7% of in the first four months of 2021, according to a monthly survey of transactions released Tuesday by the National Association of Realtors. As shown in the chart below, that’s a noticeable jump from what had been a fairly steady trend in earlier years and is probably because people able to work from home have looked for a retreat during the pandemic, according to the group. "Vacation homes are a hot commodity at the moment," said Lawrence Yun, NAR's chief economist, in a statement. "With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers." People looking for vacation homes have created more competition for the few homes available. Residential real estate has been in high demand during the pandemic, as the desire for more space and low interest rates on mortgages helped deplete inventory and caused home prices to shoot to record highs. Some buyers have opted to waive the home inspection, make all-cash offers, or bid above list price, all in hopes of gaining an advantage. People who buy vacation homes are more likely to pay entirely in cash at closing. In the first four months of 2021, 53% of vacation home purchases were all-cash, NAR said, compared with 22% of all existing-home sales. Have a question, comment, or story to share? You can reach Rob at email@example.com. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. National Association of Realtors. "2021 Vacation Home Counties Report." National Association of Realtors. "Vacation Home Sales Skyrocket as a Result of Pandemic."