- Americans owning multiple homes is becoming increasingly popular, with about 1 in 5 homeowners owning more than one.
- Investing in multiple properties provides diversification and can be a reliable way to generate rental income.
- Vacation homes offer the opportunity to earn rental income when not in use and create lasting memories.
- Owning multiple homes can build wealth over time through appreciation of property values.
- Multiple homes provide tax shelter advantages and open other business opportunities like property management.
The American dream is often associated with homeownership. But for some, owning just one home isn’t enough. More and more homes are investing in new homes even though they already had one. Here’s a look into the number of Americans owning multiple homes, why they do this (and why you should, too), and how you can take advantage of multiple properties as investment options in the future.
Americans With More Than One Home
It’s estimated that there are about seven million second homes in the US. This number also includes vacation homes and rental properties. About 1 in 5 homeowners have more than one home, with about 2 million owning three or more homes.
Reasons To Invest In Multiple Properties
There are various reasons why Americans own multiple properties. Here are some of them:
Rental Income
One of the top reasons why Americans own multiple homes is to generate rental income. Real estate investing is often seen as a reliable way to earn passive income, and owning multiple rental properties can provide a steady stream of cash flow. With the rise of short-term rental platforms like Airbnb, owning multiple homes in popular vacation destinations can also be a lucrative investment strategy. Additionally, the average monthly rental income has reached about $1,300, making this an even more lucrative market once you have multiple properties.
Diversification
Another reason why Americans own multiple homes is for diversification. Owning multiple properties diversifies your real estate portfolio, which can help mitigate risk and increase overall returns. For example, owning rental properties and vacation homes can balance long-term, stable cash flow and short-term, higher-risk returns.
Vacation Homes
Speaking of vacation homes, owning a second (or third) home in a desirable location can provide a convenient getaway for yourself and your family. Vacation homes also offer the opportunity to generate rental income when you’re not using the property. With many Americans valuing experiences over possessions, owning a vacation home can be a way to invest in memories that will last a lifetime.
Investment Value
Owning multiple homes can also be a way to build wealth over time. As home values appreciate, owning multiple properties can provide a solid return on investment. In some cases, owning a second home can even be considered a tax shelter, allowing owners to offset income from other sources.
Business opportunities
Finally, some Americans own multiple homes for business opportunities. For example, owning a rental property can open the door to other real estate investments or even new business ventures, such as property management. Owning multiple homes can also provide networking and marketing opportunities for those in related industries.
How Multiple Homes Can Be a Good Investment Opportunity
Owning multiple homes can be a great investment opportunity. Here are four ways your other homes can be a great investment opportunity:
Rental Property
One of the most common ways to earn money from your properties is by renting them out. You can either rent your properties on a long-term basis or through short-term rental platforms such as Airbnb. However, you must have a professional watching over your properties. Consider hiring a property management service to help you. The service can help you find tenants, collect rent, and handle maintenance.
Vacation Home
If you’re looking for a more passive investment opportunity, consider investing in a vacation home. These homes can earn you money through rental income when family members do not use them. The property can increase in value over time as real estate prices appreciate.
Real Estate Appreciation
As mentioned, owning multiple homes can be an excellent way to build wealth over time. As home values appreciate in the future, your real estate portfolio will grow in value as well, allowing you to reap substantial returns on your investments.
Tax Shelter
Finally, owning multiple homes can be a great way to offset income from other sources. The money you could make in rental income or capital appreciation can be used to reduce your taxes. This makes investing in multiple properties an even more attractive option for many Americans.
Owning multiple homes is becoming increasingly popular among American homeowners, providing various opportunities for financial gain and diversification of one’s real estate portfolio. Whether you’re looking for rental income, vacation homes, real estate appreciation, or tax shelter advantages, owning multiple properties can provide all these benefits. Consider exploring this option if you consider adding additional homes to your wealth-building portfolio.
