Mortgage applications for second homes in the U.S. surged in January as affluent Americans and their children able to work and study from home during the pandemic are choosing to flee crowded cities for vacation destinations, according to a report by Redfin.
Applications for second-home mortgages rose 84 percent from a year earlier, Redfin, a real-estate brokerage, said in a report on its website.
“Many Americans have realized remote work is here to stay, allowing some fortunate people to work from a lakefront cabin or ski condo indefinitely,” Redfin economist Taylor Marr said in the statement.
Lower-income workers are struggling to buy a primary residence as home values rise and employees in the service sector are negatively affected by the economic downturn, he added.
Overall home-buying demand has climbed in the last several months “due to low mortgage rates, remote-work-driven relocation and desire for more space for home offices and homeschooling,” the report said.