Vacation, Second Homes Still in Demand

The Fall 2002 Survey of Affluent Americans, conducted by the American Affluence Research Center, shows that even while most wealthy households are increasingly negative about economic conditions overall, many still have plans for new housing.

Two percent of the respondents cited plans to build a primary residence during the 12 months after the survey. The same percentage planned to build a vacation home. Each category represents approximately 200,000 housing units.

The report also found that because of the stock market decline, 16% of all respondents (and 20% of those with a net worth of $4 million or more) have shifted more of their assets into real estate. Spending indexes for major home appliances remained constant from the spring to the fall survey, while spending for home furnishings/furniture, home entertainment and home computer equipment dropped slightly.

The AARC semiannually polls a random sample of the 10 million households representing the wealthiest 10% of U.S. households. Call 305/666-0476 or visit the AARC at www.affluenceresearch.org for more information or to order the report.