New study takes a close look at owners of vacation and investment homes.

According to the new study by the National Association of Realtors (NAR), “Middle-aged, middle-income households are the driving factor in the second-home market, with favorable demographics providing a solid fundamental demand in this sector for the next decade.”

The study also found that 21% of second-home owners own more than one vacation home. In addition, the study found that minority home-buyers are an increasing portion of the vacation home market, representing 11% of the vacation home purchases between 2003-2005.

Real estate investment, including vacation homes and rental properties, are being used to diversify the investment portfolio of many Boomers. These buyers see their real estate investments as better performing assets than the stock market.

According to the NAR study, the typical vacation home buyer is 59 years old, and has purchased a property that is within 220 miles from their primary residence. 34% of vacation homes were less than 100 miles from the primary residence, and another 34% were 500 miles or more. 8 out 10 owners drive to their vacation home, and half of the vacation homes are located within the same state as the owner’s primary residence. 83% percent of owners are married couples.

“With older baby boomers just now reaching 60 years of age, and younger boomers in their early 40s, the lifestyle preference of boomers will figure prominently into future demand for vacation homes,” says David Lereah, NAR’s chief economist.

How are buyers finding their vacation and investment homes? According to the study, since 2003 67% purchased their vacation homes by utilizing the services of a real estate agent. 18% of vacation homes were purchased directly from owners, while 14% of vacation homes were purchased directly from builders.

And the second home market doesn’t seem to be cooling… 35% of all owners of investment homes said they were planning to buy another home within two years. For those who currently own four or more investment properties, 64% said they planned to buy another property within two years, and 17% said they planned to purchase five or more additional properties.

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