Centex Destination Properties Study Shows That Second Homes Take First Place as the New American Dream for 25 Percent of Affluent Households.

NEW YORK -- Potential for Second Home Market to Double by 2009; Americans Willing to Travel Longer to Tune Out and Relax, Says Largest-Ever Survey

In the late 1800s, buying a second home was just for the very rich. By the 1980s, second homes were a dream almost within the reach of the upper middle class. Today, having a second home has become a reality, with more and more people interested in owning one, according to an independent study commissioned by Centex Destination Properties (www.centexdestinationproperties.com). The study conservatively estimates that 25 percent of affluent households today expressed interest in second-home ownership over the next 2-3 years.

The Second Home/Vacation Property National Study was conducted for Centex Destination Properties (CDP) in October 2003 by American LIVES, Inc., Carmel Valley, Calif.

Second home attributes most sought by respondents are low upkeep/maintenance, proximity to shops and restaurants, walking paths, and outdoor activities such as hiking and bicycling.

Among the surprises, according to CDP researchers, was the relatively low interest in championship and private golf courses, tennis courts, or nearby ski areas; a willingness to drive much further (almost 40 percent of respondents would travel more than four hours); and a desire to tune out and relax, rather than treat the second home as an extended office. In fact, 57 percent of respondents viewed second homes as a place to get away from business pressures.

The most desirable locations sought by respondents are those offering a year-round temperate climate, followed by those with a distinct change of seasons. The top five most popular destinations nationwide were: Naples/Marco Island (Fla.), the southern New Jersey and Delaware coasts, the Florida Keys, the southern South Carolina coast, and Maui.

"We believe this is the largest study of its type ever," said Paul Bessler, vice president of strategic marketing for Centex Destination Properties. "It is a huge body of knowledge that never existed before and confirms significant interest in second homes among today's consumers, as well as offering insights into their wants and desires."

Bessler continues, "The survey helps us to understand that the potential market is larger than we anticipated, and is by no means homogenous nor saturated."

The Internet survey contacted a nationally representative sample of over 30,000 households with incomes of $125,000 or more. Of that number, approximately 15,000 participated in the survey, of which 7,307 expressed an interest in purchasing or building a second home over the next two to three years - a conservative estimate of one in four.

The respondents had a median age of 45 years (about 30 percent were Gen Xers under the age of 40), 78 percent were married, and 87 percent already owned their own home. Within the past year alone, 63 percent took some action to investigate second-home ownership, whether talking to a spouse about it (51 percent), requesting literature (25 percent), talking to a salesperson (21 percent), or actually visiting a second home/vacation community (19 percent).

The survey also reveals that the average purchase price respondents were willing to pay for a second home was $350,000 for a detached (single-family) home, and $295,000 for an attached dwelling (i.e., condominiums or townhomes).

The primary market for potential second-home buyers, defined by CDP as ages 35-65 and incomes of $125,000-plus, is projected to double from 5.8 million in 2000 to 11.4 million in 2009, according to data from Claritas, Inc., San Diego.

CDP's Paul Bessler says, "There's a willingness to travel more than four hours each way to reach a second home with numerous natural attractions and the appropriate 'life-style enhancing' amenities. This means second-home community developers such as CDP can extend further from traditional urban/suburban centers to meet the needs of these relatively affluent and mobile Gen Xers and baby boomers. It presents many more opportunities for future development."

Bessler continues, "Today's buyers want a second home to get away from work. They want peace and quiet, nature trails, and outdoor pools. Following in importance are fitness centers, indoor pools, and health spas."

Adds Joel Sowers, CDP's executive vice president, "The study provides a fresh glimpse into the heart of this understudied market. Using this data, we are creating our communities to reflect the evolving passions of our customers.

"Today's second home is a safe haven from the pressures of day-to-day life, where people can unplug and enjoy themselves with friends and family amidst natural beauty. We consider it not recreation, but re-creation," says Sowers.

Centex Destination Properties (www.centexdestinationproperties.com) is the Second Home/Resort arm of Centex Homes. Centex has ranked No. 1 in three of the last four years on Fortune magazine's list of "America's Most Admired Companies" in the engineering and construction category.

Resorts developed by Centex Destination Properties grace the east coast of Florida; Hawaii; Lake Las Vegas, Nev.; the Colorado Rockies; La Quinta, Calif.; Galveston, Tex.; the Texas Hill Country; and the western highlands of North Carolina.

Centex Destination Properties is headquartered at: 385 Douglas Ave., Suite 3100, Altamonte Springs, FL 32714.