The American Resort Development Association has released its 1999 "State of the Industry" report, showing that home buyers increasingly are acquiring some kind of leisure residence as they get older.

Another report suggests, however, that the market may be too good - with prime resort land, such as beach front property, getting scarce and prices getting ready to soar.

The ARDA report, signed by former president Cynthia Huheey, shows there are more than 1,600 resort developments in the United States and more than 2 million vacation property owners. Those owners range from people who own luxury single-family homes on golf courses all the way down to those owning fishing shacks on secluded lakes, including time-share property owners.

In 1998, the last year that statistics are available from, about 300,000 families purchased some kind leisure property.

"This is truly an industry that has come of age," said Huheey. "Vacation ownership is attracting the interest of Wall Street and the participation of many of the most revered names in the hospitality industry."

In 1980, it is estimated that only 150,000 U.S. families owned things like time shares and worldwide there were only about 500 resorts.

Another report MarkeTech Information Services in Charleston, S.C., suggests, however, that beach front developers may be running out of land and that prices may soon begin a sharp rise.

Looking at the Charleston market, Dennis Fassuliotis says that "because of limited inventory of buildable lots in most beach areas, land prices could continue to jump by as much as 30 percent this year."

In its broader survey, ARDA said characteristics of second home and vacation home buyers put them squarely in the Baby Boomer category.

Almost 32 percent of second home buyers were between the age of 40 and 49, while another 23.4 percent were between 50 and 59. Some 22.8 percent of buyers were under 40 and about 21.8 percent were over 60.

Most buyers also did not have extraordinarily high incomes.

Some 32 percent made between $50,000 and $74,999 per year and 21.8 percent made less than $50,000. About 23 percent had incomes between $75,000 and $99,999 and another 23 percent had incomes in excess of $100,000.

ARDA said it expects even more pressure on resort property and vacation buying through the next 20 years as more and more Baby Boomers start looking for second homes.

"There is a trend showing the consumer profile moving up the socio-economic ladder," the report said. "As an aggregate profile, the typical vacation owner is an upper-middle income, middle-aged, well-educated couple."

Published: March 22, 2000

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