Are Buyers Purchasing Second Homes in Pa. Before First Homes?

The New York Times recently highlighted an emerging trend where buyers are purchasing second homes before first homes, but what does this mean? A Pennsylvania Realtor® says she’s seen this for years in her local market. 

Why buy a second home first? 

Purchasing a “second home” before a first home has proven beneficial for some city dwellers, as the NYT cites that renting is 38% cheaper than owning on average in 50 of the nation’s largest metros. 

As a result, some renters who live and work in cities where they can’t afford to buy a home have turned to purchasing in more affordable, less urban areas. This allows them to reap the benefits of homeownership while remaining close to their jobs and primary residences. Their second homes serve as vacation getaways and/or short-term rentals, and they often hope to one day make them their permanent homes. 

Where are buyers buying second homes in Pennsylvania? 

“Many buyers from the New York City and Philadelphia metro areas purchase a home in the Poconos before they ever own a home where they currently live,” says Lisa Sanderson, a member of the Pocono Mountains Association of Realtors®. “They continue renting near their jobs while building equity in a property they enjoy on weekends and often plan to make their full-time residence in the future.” 

“For some buyers, the plan is always to retire here. Others simply want a weekend escape, but over time, their priorities change. We’ve seen many people eventually relocate full-time after discovering they love the lifestyle the Poconos offers.” 

“I think this can be a smart strategy for the right buyer, because it allows them to begin building equity in a market that is often more affordable while working toward the lifestyle they ultimately want,” Sanderson adds. “I always encourage buyers to think beyond today’s use. Buy the property that will make sense if it eventually becomes your primary residence. A home that works only as a weekend getaway may not meet your needs five or 10 years down the road.” 

She notes that in the Poconos, affordability is only part of the story, as many people are drawn to the area because they want more space, access to nature, lakes, mountains, outdoor recreation and a slower pace of life. For many Poconos buyers, purchasing a home there is about investing in a lifestyle they hope to enjoy someday – not just finding a more affordable place to buy. 

What considerations should be made before buying a second home first? 

Sanderson adds that it’s important to understand the unique considerations that come with purchasing in a vacation market, including HOA rules, local ordinances, maintenance of a home that may sit vacant part of the time and, where applicable, short-term rental regulations.  

“Like any real estate decision, success comes from buying with a long-term plan rather than simply chasing today’s opportunity,” she says.