If a retired person owns property and sells it, that is income subject to capital gains tax.
If a person is retired but still owns the business or is even still a board member, they’re still working in a sense and gaining shares.
There are plenty of “retired” people who are “working” and have income.
That doesn't seem insane compared to say California with 0.71%?
Granted, there are some working-age people who buy a vacation home with the thought of moving into it permanently a decade or two into the future, but those plans entail a lot of uncertainty (health, closeness to family) and of course once they move, it is no longer a vacation home.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have income taxes. Less than 20% isn't 'many' to me but I realize YMMV.
Millenials are retiring already?
As of 2024, there are an estimated 11.2 million RV-owning households in the U.S., according to Emergency Assistance Plus.
That's more than double the 4.8 million mentioned in the article...and theoretically some households could own more than two. But modulo RV's are also used for work travel particularly when it comes to construction.
Like anything relating to housing and real-estate, it's complicated.
https://en.wikipedia.org/wiki/Crystal,_Gunnison_County,_Colo...
Having a three-season place is pretty common here.
Presumably if the residents don’t even live there, then they are massive net contributors to the tax base
I would guess that another huge factor has been the decline in the real cost of air travel. It’s now cheap enough that people with money can reasonably expect to fly somewhere for every vacation they want to take. You don’t need a condo near the local ski resort if you can fly to a different one every winter.
In fact, I feel buying property in one vacation spot is starting to look more like an anchor than an escape hatch. Keeping capital in securities instead is more liquid and less expensive (stocks don’t have roofs or plumbing). Let someone else own the hotel or AirBnB or VRBO. I’ll fly in and rent it just for the vacation. This mindset may partially explain why vacation home ownership has not “kept up” with the growth in real wealth.
To your point I liked the liquidity of equities but it has been nice to do something with it beyond just watching a number in a spreadsheet. If we want a change in scenery it’s a wash to rent our own place out and stay in another.
lodging at a ski resort is still very expensive though. I think i makes sense to buy one if you ski ~100 days/year and airbnb out rest of the time. Lots of ski resorts now have summer activities like mtb and hiking too.
and ski resorts usually are sentimental purchases.
AC makes it comfortable if you have it
let me clarify: penthouses and top floor rooms are the best rooms now because they can be kept cool, and have views.
in the past the top floor rooms were the worst rooms because couldnt be kept cool, while also having views.
in older estates, its interesting to see that the lowest ranked personnel were living in areas that are now coveted for the highest ranked personnel. due to their current ability to be kept cool.
But the conclusion I came to years ago was that who wanted to be tied down to a particular location or urban location for vacation. Yeah, it's not cheap but more-so than owning and having to deal with a second home.
One of the (main?) reasons why the Bretton Woods Conference [1] (that determined the post-WW2 financial/currency regime) was held in Bretton Woods, New Hampshire [2] was because no one wanted to be in Washington, DC, in July when it was schedule to take place because of the oppressive heat and humidity that tends to occur in DC during the summer.
[1] https://en.wikipedia.org/wiki/Bretton_Woods_Conference
[2] https://en.wikipedia.org/wiki/Bretton_Woods,_New_Hampshire
Then figure out a way to get out of income tax.
For example, Florida has a lot of vacation homes (8% of the state's housing vs 3% nationwide), but the vast majority of Florida census tracts have a tiny proportion and vacation homes are the majority in a few small areas. In some areas, the proportion of vacation homes seems to follow population density (gulf coast of Florida), and in other areas it follows the _inverse_ of population density (northern Maine.)
What I think would be really interesting is a map of distance to primary home by census tract. Obviously Florida vacation homeowners are mostly from far away and in New England they live closer, but what about all the other areas?
Zoning, as the author points to, is not the issue around those parts.
AdventureMouse•9h ago
the__alchemist•9h ago
quickthrowman•9h ago
Finland also has a high amount of vacation homes on lakeshore property, and I would guess that pretty much any area with glacial lakes within hours of population centers will have lots of vacation homes.
tzs•9h ago
It's well known as a major state to retire to, and many of the things that make a place attractive as a retirement destination also make it attractive as a vacation home location. And it is a high population state so when comparing by absolute numbers it would be the most obvious candidate for most vacation homes.
The interesting part is where it looks at percentage of homes in the state that are vacation homes. Florida is high by that measure too at 8.2%, but behind Maine and Vermont which are each over 15%, and New Hampshire at over 10%.
It is even a little behind Alaska (8.9%) and Delaware (8.6%). I bet not many people would have guessed that Alaska has a higher percentage of vacation homes that Florida.
Hawaii is also interesting. It has twice the population of Alaska, but only slightly more vacation homes (31.6k vs 29.2k).
fn-mote•8h ago
Common sense reasoning: people cannot afford to have their vacation home in Hawaii.
High prices, long and expensive flights.
fragmede•8h ago
radpanda•7h ago
I’d be shocked if the parcels that Larry Ellison owns on Lanai are classified in a way that would show up as a vacation home. Typically rich large landowners in Hawaii are “gentleman farmers” who (ab)use agricultural tax loopholes.
https://jacobin.com/2023/06/agriculture-property-tax-break-u...
matwood•8h ago