Seasonal Residents and Economic Development

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Seasonal Residents and Economic Development RYAN PESCH, EXTENSION EDUCATOR


SEASONAL RESIDENTS


PROFILE SECOND HOMEOWNERS IN MINNESOTA’S LAKES DISTRICT 30% seasonal

Methods

– Random sample

of prop tax records

– Mailed survey

(1,200)

– $5 incentive

– 573 responses

(48%)


WHAT KIND OF PEOPLE OWN SECOND HOMES?

020406080

100120140160180200

Less than40

40-49 50-59 60-69 70 andover

Respondents by Age Categories (n=561)

0

20

40

60

80

100

120

140

160

180

200

No HSdiploma

HSDiploma

Somecollege

Associatedegree

Bachelorsdegree

Graduatedegree

Respondents by Education (n=565)



Respondents by Employment Status (n=549)

Employed Unemployed Retired

020406080

100120140160180200

Respondents by HH Income (n=510)

53% of respondents have owned, operated, or played

a significant management role in a business



25% of respondents report telecommuting from

second home property

25%

35%

40%

Quality of internet according to respondent who report telecommuting (n=134)

Poor OK Good


PROPERTY OWNERSHIP

18%

17%

31%

34%

When did you purchase your property? (n=561)

0 to 5 years 6 - 10 years 11 to 20 years Over 20 years


REASON FOR PURCHASE

Natural

Amenities

1%

2%

2%

4%

7%

8%

8%

8%

9%

15%

15%

23%

23%

24%

32%

33%

33%

48%

57%

63%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Rental income

Dispersed development

Local living costs

Lower taxes than other areas

Security

Other

Climate

Lower property costs than other areas

Availability of properties

No purchase / I inherited

Investment potential

Friendliness

Intend to retire here

Small town atmosphere

Proximity to recreational amenities

Proximity to family and/or friends

Family has a long tie to area

Water quality

Scenic beauty

Peaceful

Property by the lake


SECOND HOME USE

1% 1% 3% 4%

20%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

What is the current use of your property (n=570)


SECOND HOME USE

0 100 200 300

1 to 2 people3 to 4 people5 to 6 people

Over 6 people

How many typically occupy when in use?

(n=517)

Average of 4 people

About 208,000 to 52,066

properties in 8 counties

(Source: Census)


SECOND HOME USE

0

2

4

6

8

10

12

14

16

18

Average Days per Month

93 Days

Total on

Average


FUTURE PLANS

56%

17%

27%

Do you plan to move permanently to second

home? (n=569)

Yes No Undecided

0

5

10

15

20

25

30

35

40

45

50

Next 12months

1-5years

6-10years

Morethan 10

No sure

If yes, when?

Over 200,000 seasonal recreation housing units in the state (US Census) relocation of

about 120,000 households in next 10 years with 60% of seasonal residents relocating.


SEASONAL RESIDENT SPENDING

Spending category Median Average

Annual Spending based on Average

Percentage of HH

Spending in Second-

home community

Grocery/Liquor $ 64 $ 120 $ 1,434 89%

Dining/Bars $ 40 $ 74 $ 882 85%

Gas/Auto service $ 50 $ 74 $ 889 84%

Pharmacy $ - $ 11 $ 132 18%

Home maintenance $ 50 $ 95 $ 1,139 81%

Entertainment/Rec $ 34 $ 75 $ 897 81%

Building/Remodeling $ 400 $ 1,066 $ 12,794 59%

$ 18,167

Average of $18,167

Est of $946 million from 52,066 properties in 8 counties

(Source: Census)


VIEWS ON DEVELOPMENT

51%,

17%,

32%,

I would like to see more retail and commercial development

Disagree Don't Know Agree

29%

20%

50%

Additional residential development threatens the quality of life



COMMUNITY ATTACHMENT

I feel strongly attached to my

second home property


I feel strongly attached to the community near my

second home



COMMUNITY CONNECTIONS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Held publicoffice Held leadership

Volunteered incomm org Involved in

community org Made donation

Community Connection by Residence (n=522)

In 2nd home Would consider At home


COMMUNICATIONS

050

100150200250300350

How do you learn about news and events? (n=559)

Typical Prefer


CONVERSATION

What has been the experience of your

community with seasonal residents?

How best to integrate seasonal residents?


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Seasonal Residents and Economic Development

Economy & Finance

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