Real Estate Trends Shaping Second Homes and Investment Property Ownership

Second homes are hot right now. Indeed, Sotheby’s 2026 Luxury Outlook Report indicates that second homes represent 28% of global luxury real estate transactions. And as a recent Forbes report notes, third and fourth homes are an increasingly popular option for high-net-worth individuals.

As with any trend, however, second-home ownership isn’t for everyone. Owning multiple properties comes with a measure of complexity: homes need maintenance; there are property taxes to pay, lawns to mow, and pools to clean or winterize. Buying an investment property outright can also leave you exposed to greater risk if the property’s market suddenly loses its appeal, for example.

Fortunately, there is an alternative real estate strategy that offers investors many of the benefits of luxury vacation home ownership with fewer of the headaches. Learn more about where luxury real estate investors are looking for properties at the moment, and discover how Equity Estates is challenging the conventional thinking around buying investment property with this look at the real estate trends shaping luxury property investments today.

The Biggest Real Estate Trends Influencing Luxury Buyers

Per Forbes’ reporting, the trend of buying second, third, or fourth homes has grown among luxury real estate buyers, driven by changes in how we live and work. Real estate agents are seeing younger high-net-worth individuals buying multiple properties to use more as residences than vacation homes. Flexible working arrangements facilitate a hybrid lifestyle for people in their 30s and 40s. High earners in these age groups can afford to maintain multiple properties and use each as a lifestyle hub, rather than keeping a property for occasional vacation visits.

This has two knock-on effects on the luxury real estate market. First, it creates a greater demand for year-round livability. Second-home buyers are increasingly looking for properties they can use year-round, not just when it’s beach weather or peak skiing season. Secondly, there is a shift away from legacy markets due to inventory constraints, pricing pressure, and the general congestion that comes from increased popularity. 

These trends are leading to mini-booms in less well-known luxury real estate markets, such as Salt Lake City, Charleston, and Scottsdale.

Why Emerging Lifestyle Markets Are Attracting Investment Property Buyers

These aren’t the only luxury real estate markets benefiting from the current trends for second home ownership. But the qualities of the emerging markets here give a good sense of what is currently attractive to investment property buyers.

Salt Lake City & Park City

Utah neighbors Salt Lake City and Park City are renowned skiing destinations. World-class skiing and the area’s thriving tech industry — these are the Silicon Slopes — also contribute to the area’s easy airport access. Indeed, Salt Lake City is considered one of the USA’s most accessible cities for winter sports, famously featuring 10 premier ski resorts within an hour’s drive of the airport.

But buyers are increasingly drawn to invest in property in these cities for four-season, year-round living. There is also a growing interest in the market due to the forthcoming 2034 Olympic Games. Investors anticipate the Olympics will drive strong appreciation of property values and rental demand. This positions both Salt Lake City and Park City as prime markets for buyers who want properties for their immediate personal use that also offer a long-term upside.

Charleston

Historic Charleston, South Carolina, is one of America’s most walkable cities, with a thriving cultural and culinary scene packed into a compact, architecturally enchanting downtown. Just outside the city, coastal Charleston is a string of barrier-island beach communities, punctuated by some of the finest golf courses in North America (if not the world).

Buyers are flocking to Charleston for authenticity and community. The relaxed pace, famous Southern hospitality, and moderate climate are complemented by a thriving local job market that keeps the city vibrant and forward-looking.

Scottsdale

Tagged America’s fastest-growing wealth hub by Henley & Partners, the luxury real estate boom in Scottsdale, Arizona, is driven in part by the simple fact that a lot of wealthy people are moving there to work, thanks to Phoenix’s rapid transformation into a global semiconductor hub. Investors also appreciate low property taxes and the state’s lack of estate or inheritance taxes. 

Almost 300 days of sunshine every year doesn’t hurt the city’s appeal, to say nothing of a highly rated restaurant scene and some of the country’s best golfing. Scottsdale is seeing particularly high interest in turnkey condo living, with fully furnished ultra-luxury developments attracting significant attention from the market.

The Challenge of Owning Multiple Investment Properties

The attraction of owning multiple investment properties is clear, but investors are also committing to a significant administrative burden. Every home you own requires maintenance and oversight. There are taxes and insurance payments to manage as well as seasonal upkeep to attend to. If you choose to hire a property manager or team, then you have staff to manage and payroll to handle. 

And, of course, you will need to coordinate and schedule travel between your properties, if it’s your intention to actually enjoy the use of them.

How Structured Real Estate Portfolios Support Flexible Living

Clearly, owning multiple investment properties isn’t all upside. At least, not if you do it the conventional way. The Equity Estates model of portfolio ownership and professionally managed travel experiences exists as an alternative to conventional investment property ownership, with most of the benefits and more. 

You can find out more about how the investment works on our website or by scheduling a call with our team, but the model can be summarized as investing in a portfolio of luxury vacation homes. Your contribution to an Equity Estates Fund is an investment in a portfolio of 10-12 luxury homes, distributed around some of the most sought-after locations in the world. 

The houses all have multi-million-dollar valuations. They are maintained to a luxury standard and looked after by our home asset management team with a focus on preserving or improving asset value.

Your investment has a defined horizon — every Equity Estates Fund has a set liquidation date (typically about 10 years after the fund is opened). On liquidation, homes are listed for sale, and proceeds are distributed to investors according to a pre-defined prioritization: First, return 100% of the original investment; next, divide 80% of any profit from asset appreciation between the investors. The managing partner takes the remainder as compensation.

In the interim, between your initial investment and fund liquidation, you and the other investors have exclusive access to the properties in the investment portfolio. Not only that, but you get exclusive access to all the properties in every Equity Estates Fund — currently more than 65 around the world. This access is supported by a Vacation Concierge service to help you manage logistics and activities, and onsite local hosts and daily housekeeping.

Professional management removes the administrative burden of property ownership — every property in your portfolio is kept in prime condition by our Luxury Home Asset Management Team. And the portfolio ownership structure allows our investors to diversify without needing to purchase multiple standalone properties.

To learn more about Equity Estates Fund investment opportunities or to download our Executive Summary, contact us today.

Travel with Equity Estates for a unique and memorable experience. If you would like more information about investing with Equity Estates, please reach out to our Investor Relations team at 404.445.8501 or click to schedule a call.