Second-home economy ripples across Yarmouth
by Debi Boucher StetsonMore than a third of Yarmouth’s residential properties are second homes, and the percentage is growing every year. Unlike in the past, many of these second-home owners occupy their homes here year-round, frequently traveling from elsewhere in Massachusetts on a Thursday or Friday night for long weekends.
Many even use their broadband connections to conduct business from the Cape.
“Years ago, people would buy a second home, and the wife and the kids would come down for the summer, and the husband would come on weekends,” said Dick Neitz, owner of Neitz Real Estate in South Yarmouth.
Today’s two-income families come more frequently for shorter stretches of time, he observed. “They try to get here as often as they can.”
“That’s another shift,” said Neitz. “It used to be cottages,” and now second homes are bona fide year-round houses.
There’s more reason for second-home owners to come at different times of the year, Neitz said, because there’s more to do on the Cape in the off-season, including cultural activities such as art openings, theater and concerts. “I know people who own second homes who plan weekends around being here for the symphony,” he said.
Second-home owners have a tremendous impact on the local economy. Some studies suggest they will spend 1.6 times more on their home here than full-time residents.
“There are more seats filled in restaurants because of them, and probably more people going out to the movies on a Saturday night because of them,” he said. “Every time you see a new household being created, even if it means that someone else has left, there’s an infusion into the economy because of all the things they need to buy.”
Neitz said that many of his clients are second-home buyers. He noted a recent conversation with an agent relatively new to the industry, “He said he has yet to sell to anyone but second-home buyers. They’re a significant part of the market.”
Scott McCracken, branch manager at Family Choice Mortgage Company in South Yarmouth, said, “a good third” of his business represents second-home buyers. Most will opt to use a financing company or bank here, rather than their bank back home. “Some people come kind of prepared with their financing all ready, but more often than not people will be referred to us by the Realtor they work with – that’s how we get a lot of our business. They find it easier to work with a Cape-based lender.”
While there’s a perception that second-home buyers often don’t even need financing, McCracken said most choose to use it anyway. “Particularly with rates where they’ve been for the last five or six years, even people who might have had the capital to buy their property outright find it’s more to their benefit to finance the property, and leave their capital free for other investments,” he said.
“If you buy a property with cash, your money’s not really working for you,” he added.
George Davis, owner of George Davis Inc., a Yarmouth-based building company, said about 75 percent of his clients are second-home owners. Many are preparing their second homes for year-round living, in anticipation of moving here full-time when they retire. “They live in a nice house wherever they’re from, and I don’t think these people want to live in a camp.”
In many cases, the houses that serve as second homes are dated, so owners want to upgrade the kitchen or bathrooms. “Often they don’t meet today’s standards. The master bedrooms might be too small, or they want a bigger family room,” Davis said.
Usually, people aren’t looking to increase their space to make room for more people, but just want to make better use of it. One of the most popular projects for second-home owners, he said, is to add a sunroom to integrate the house with the outdoors. “They like to enjoy the outside,” Davis said.
“We do very little work for young families on Cape Cod, which I find frustrating. Frankly, I don’t think they can afford it,” he said. “And raising young families, you have other priorities.”
By pumping up the building trades, second-home owners have a larger impact on the Cape’s economy, Davis said. “I think that the building industry on Cape Cod is probably underrated in terms of its impact. We employ a dozen people, and they all bring their paycheck home and spend it locally,” he said. “Then there’s Dunkin’ Donuts,” he said, with a chuckle. “Follow the money, you’ll see the impact.”
When second-home owners spiff up their Cape homes, it benefits not only firms like Davis’, but also subcontractors such as plumbers and electricians, building supply companies and home décor shops.
And, of course, the more improvements people make to those second homes, the more frequently they come down to enjoy them – and the more money they spend here, Davis observed.
“The second-home owner market is a blessing, because people are coming down for the weekends and spending their money locally,” Davis said. “It’s the three-day weekend – people who don’t live that far away. They’re coming down, and they’re spending their money here, and we love them.”
Published in The Villages of Yarmouth May/June 2007
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