Where is the largest share of loans for second homes?

by Steve Randall12 Jun 2018

With inventory so tight in many markets and studies suggesting that homeowners are unwilling to sell as they may struggle to find a replacement, a new analysis considers the impact of non-owner-occupied homes.

These include second, vacation, and investment homes; and specifically looks at those purchased with a mortgage.

The LendingTree study ranked the top 50 metros for their share of non-owner occupied homes according to HMDA data from 2017, and also considered the average loan amounts for owners and non-owners.

The cities with the most, least non-owner occupied mortgages

Oklahoma City, Philadelphia and Memphis (Tenn.) had the highest share of non-owner occupied mortgages while Hartford (Conn.), Cleveland, and Detroit had the lowest.

Overall, cities with the most non-owner occupied properties were located in the South or the West, while those with the least are in Northeast and Midwest.

Southern cities may be attracting investors due to low prices and growing populations. In the West, the opportunity for rapid price appreciation is likely attracting investors.

In the Northeast and Midwest, affordable homes mean the opportunity to be a homeowner is high and less appreciation attracts less investors.

Places ranked by share of non-owner occupied mortgages

Rank

Metro

Non
Owner %

Non-owner
Average Loan
Amount

Owner
Average Loan
Amount

Non-
Owner
Average
Applicant
Income

Owner
Average
Applicant
Income

1

Oklahoma City

15.4%

$193,000

$182,000

$86,000

$87,000

2

Philadelphia

14.6%

$245,000

$225,000

$116,000

$102,000

3

Memphis, Tenn.

14.6%

$126,000

$192,000

$128,000

$88,000

4

Miami

14.5%

$382,000

$302,000

$283,000

$119,000

5

San Francisco

13.9%

$695,000

$819,000

$326,000

$257,000

6

New Orleans

13.4%

$217,000

$219,000

$127,000

$98,000

7

Las Vegas

12.9%

$205,000

$258,000

$142,000

$91,000

8

New York

12.5%

$533,000

$423,000

$252,000

$163,000

9

Los Angeles

12.5%

$565,000

$501,000

$267,000

$163,000

10

Riverside, Calif.

12.2%

$280,000

$290,000

$185,000

$109,000

11

Orlando, Fla.

11.5%

$227,000

$230,000

$157,000

$91,000

12

Boston

11.4%

$560,000

$397,000

$189,000

$148,000

13

San Diego

11.2%

$444,000

$458,000

$227,000

$141,000

14

Sacramento, Calif.

10.9%

$310,000

$319,000

$217,000

$113,000

15

Austin, Texas

10.8%

$255,000

$279,000

$204,000

$326,000

16

San Jose, Calif.

10.4%

$569,000

$686,000

$288,000

$203,000

17

Phoenix

10.0%

$239,000

$245,000

$168,000

$91,000

18

Virginia Beach, Va.

10.0%

$205,000

$244,000

$123,000

$82,000

19

Nashville, Tenn.

9.8%

$246,000

$250,000

$164,000

$96,000

20

Kansas City, Mo.

9.5%

$192,000

$200,000

$116,000

$235,000

21

St., Louis

9.4%

$153,000

$193,000

$101,000

$127,000

22

Providence, R.I.

9.4%

$294,000

$243,000

$189,000

$96,000

23

Tampa, Fla.

9.4%

$200,000

$217,000

$152,000

$90,000

24

Seattle

9.1%

$402,000

$422,000

$189,000

$135,000

25

Jacksonville, Fla.

8.9%

$191,000

$221,000

$158,000

$88,000

26

Dallas

8.9%

$224,000

$269,000

$177,000

$121,000

27

Portland, Ore.

8.8%

$288,000

$306,000

$180,000

$ 106,000

28

Chicago

8.6%

$239,000

$266,000

$161,000

$121,000

29

Raleigh, N.C.

8.5%

$183,000

$251,000

$150,000

$103,000

30

Houston

8.5%

$230,000

$241,000

$155,000

$115,000

31

Denver

8.4%

$284,000

$316,000

$162,000

$106,000

32

San Antonio

8.4%

$180,000

$214,000

$140,000

$91,000

33

Milwaukee

8.0%

$258,000

$ 209,000

$115,000

$101,000

34

Charlotte, N.C.

8.0%

$178,000

$235,000

$145,000

$95,000

35

Atlanta

7.9%

$208,000

$235,000

$151,000

$97,000

36

Richmond, Va.

7.5%

$191,000

$236,000

$113,000

$91,000

37

Baltimore

7.3%

$224,000

$301,000

$170,000

$113,000

38

Washington

7.3%

$322,000

$406,000

$173,000

$139,000

39

Birmingham, Ala.

6.9%

$175,000

$196,000

$116,000

$86,000

40

Minneapolis

6.9%

$226,000

$241,000

$130,000

$102,000

41

Salt Lake, City

6.8%

$239,000

$266,000

$171,000

$89,000

42

Louisville, Ky.

6.5%

$230,000

$180,000

$108,000

$81,000

43

Columbus, Ohio

6.4%

$230,000

$199,000

$128,000

$95,000

44

Buffalo, N.Y.

6.4%

$294,000

$154,000

$127,000

$81,000

45

Pittsburgh

6.4%

$161,000

$177,000

$113,000

$93,000

46

Cincinnati

6.3%

$161,000

$183,000

$134,000

$91,000

47

Indianapolis

6.2%

$169,000

$185,000

$154,000

$92,000

48

Hartford, Conn.

5.9%

$237,000

$215,000

$142,000

$102,000

49

Cleveland

5.7%

$124,000

$167,000

$134,000

$92,000

50

Detroit

5.2%

$115,000

$163,000

$138,000

$83,000

 


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