Second homes and retirement homes in the Lakes Region

Lately, there’s been a lot of press regarding the surge of interest in middle and high-end Lakes Region properties. Many factors fuel the increase… age demographics, recreational pursuits with our abundance of lakes, rivers, and mountains, and of course, the pandemic, which became a catalyst to trigger increased momentum and interest in our coveted region. It’s a national trend playing out. Look at all the areas around our country with similar natural resources, Lake Tahoe, CA, Coeur D’Alene, ID, Ocean City, NJ, Myrtle Beach, NC, Barnstable, MA, Naples, FL, Hawaii, Flagstaff, AZ, St. George, UT, and so many others attracting second homeowners and semi-retired’s there are all growing.

Just in New England alone, there are many hot spots. Killington, VT, Portland, ME, Burlington, VT, Kennebunkport, ME, Newport, RI, and all of the Cape Cod communities.

When you look at the Lakes Region, you can see the reasoning behind the huge demand. We are located within a 7-hour drive of 50+ million people; we are less than two houses from Boston, and families are looking for a closer location with unlimited natural resources. A place they can drive to more frequently instead of hopping on a plane. A complicated and stressful destination market involving airfare, rental cars, cancelations, and difficulty getting to and from becomes less desirable.

Here are a few things to consider.

• 76 million Americans were born between 1945 and 1964 who are now at the semi and retirement age.

• These “Baby Boomers” control 53.2% of the wealth and more than 50% of discretionary spending power. This is one reason we are seeing so many cash offers in the Lakes Region.

• Boomers are now clustering in scenic places where they often have vacationed. They want their children and grandchildren to be within a reasonable distance to experience fond memories together. The Lake Winnipesaukee Region is definitely a Boomer stronghold because of our close proximity to the job masses.

• Generation X (born between 1964-1980) is another contributing factor. There are 64.9 million Gen Xers (19.7% of the population.) Many in this age group are now 41-50 years old with families that love lake activities, hiking, and skiing. The Lakes Region is a magnet with a huge draw… Gunstock Ski Area, our 273 lakes, ponds, and rivers, our hiking trails, boating, and ski areas just up the road spell recreation and quality of life.

• The millennial generation (born between 1981-1996) represents 83 million citizens or 21.9% of the population. This age bracket 25-40 years old today are buying primary homes, and many surprisingly are purchasing second homes in our region. It’s pretty amazing to see some of the incomes coming out of the cities and the purchasing power they have in this age bracket. Physical activity and recreation are paramount for their stressful lifestyles in the city. With COVID, many workplaces are allowing more flexibility to be able to live in more remote areas like the Lakes Region. Some of them telecommute to the city 1-3 days per week and work remotely the remainder of the week.

So how many seasonal homes do we have in the Lakes Region?

• New Hampshire has always been a haven for second homes. Roughly 10.4% of all households in the state are second homes.

• The highest concentration of second homes are in the Lakes Region and Mount Washington Valley.

• In Moultonborough, 60% of the housing units are seasonal homes.

• In Tuftonborough, 53% are seasonal.

• In Alton, 45% are seasonal.

• Even in Laconia, 25% of the housing stock is seasonal.

• Up the road along Newfound Lake, between 1/3-1/2 of all homes in the four towns bordering the lake are seasonal.

So what has been the effect of the influx of seasonal homeowners?

• I realize there is a disparity in income levels in Belknap, Carrol, and Grafton Counties. It’s a problem for our workforce housing sector when they compete for primary and affordable housing against a growing number of second homeowners and semi-retired from outlying regions who have the financial resources to purchase in a competitive market. We need cities and towns to work with developers and contractors to create more affordable housing opportunities for our local population.

• At the same time, we have to look at the positive effects of second homes and retirement homes and how it has enlivened commerce in the region.

• Take, for example at South Down Shores and Long Bay in Laconia, encompassing over 360 acres with almost a mile of shorefront on Lake Winnipesaukee. There are now over 600 property owners from many geographical areas who can call the Lakes region home. Many are vacation homeowners and semi-retired. Today both communities, I would guess, contribute close to $3.8 million annually to the City of Laconia’s tax revenue. That’s a lot of revenue that has helped the city grow its infrastructure, schools, police, fire stations, and other amenities. That’s just one of the many second-home communities on just the big lake, and there are so many other desirable lakes with similar homes and communities that contribute to the tax base.

• Where would the Lakes region be today without second homes, vacation properties, tourism, hospitality, and semi-retirement homes? It has a massive effect on our region and, in reality, is the #1 industry in our region.

• Why would we want to be like Route 128 in Mass like Waltham or, say, Stanford Connecticut that has many fortune 500 companies per square mile?

• The answer is that segment of the population from the above areas want to be up here to enjoy the quality of life, recreation pursuits, scenery, and #1 in liveability rankings our state enjoys.

• Just last year alone, there were close to 12,000 new boat registration in NH the largest percentage were in the jet ski and watercraft category. Think of the economic impact for marinas and the jobs created, the same thing for the car industry, ATV sales, snowmobile sales, etc.

• Look at our ski industry; Gunstock Recreation Area is such a huge quality draw year-round, and look at the number of jobs created that center around the ski area. The same goes for our local ski, sport and bike shops who benefit from the influx of second homes.

• Look at the jobs created from the construction of second homes and retirement homes, local engineers, surveyors, architects, attorneys, site contractors, home builders, landscapers, contractors, Realtors®, and all other trades connected with the home building industry. Home decorating, furniture stores, retail stores, restaurants, pubs, diners, theatres, Bank of New Hampshire Pavillion, Funspot, marinas, and so many other businesses have grown and benefitted from the second home and retirement home industries in our region. Look at the transformation of Meredith and the small towns and villages surrounding our lakes. Look at Wolfeboro, Gilford, Alton, Moultonborough, and the large investments and improvements to Laconia and Weirs Beach.

We have so much to be thankful for in the Lakes Region. The word is out that we are a very desirable place to live. Let’s always keep the fabric of our communities “always welcoming” and create quality improvement, infrastructure, and new construction with a vision to always keep our region unique and attractive to all.