Nearly Half of Vacant Units in Rural Counties are Second Homes

In rural areas, vacancy rates don’t indicate low housing demand, reports Sarah Melotte in The Daily Yonder. 

Although roughly 19 percent of housing units in nonmetropolitan areas are vacant, “In nonmetro counties with economies dependent on recreation, a larger percentage of the housing stock is allocated towards seasonal use compared to rural counties with economies dependent on other industries.” 

In areas dependent on tourism, high rates of second home ownership mean that vacant housing doesn’t indicate a lack of demand. “While 27% of the vacant units are second homes in metro counties, 47% of the vacant units in nonmetro counties are second homes.”

According to a report from Headwater Economics, the impact is small: “A 10% increase in the share of housing units that are second homes only resulted in a 0.4% increase in earnings spent on mortgages and a 0.3% increase in earnings spent on rent in nonmetropolitan counties.” The report notes that the rate of net migration is the variable with the strongest effect on housing costs, not second home ownership. “As rural places develop robust economies that drive prosperity and growth, they become more desirable to everyone – second homeowners and long-term residents alike.”