MetroIntelligence Economic Update by P. DUFFY
Consumer sentiment plummets 9.4 percent from April, down 28.7 percent year-on-year
Consumer sentiment declined by 9.4% from April (and down 28.7% year-on-year), reversing gains realized that month. These declines were broad based–for current economic conditions as well as consumer expectations, and visible across income, age, education, geography, and political affiliation–continuing the general downward trend in sentiment over the past year. Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36% of consumers attributing their negative assessment to inflation.
NAHB estimates nation’s stock of second homes
According to NAHB estimates, the total count of second homes was 7.15 million in 2020, accounting for 5.11% of the total housing stock. This represents the most recent data available. As of 2020, the state with the largest stock of second homes was Florida (1.04 million), accounting for 10.8% of all second homes. South Dakota had the smallest stock, approximately 19,225 second homes, among all 50 states. Half of the nation’s second homes can be found in eight states – Florida, California, New York, Texas, Michigan, North Carolina, Arizona, and Pennsylvania.
Demand for second homes far down from last year’s boom
Mortgage-rate locks for second homes were up 9.1% from pre-pandemic levels in April, essentially unchanged from a revised rate of 8.7% in March and down from 15% in February. That’s a drastic dip from the second half of 2020 and 2021, when demand soared as high as 88% above pre-pandemic levels.