The Impact of Second Homes in the Lakes Region

The docks at South Down Shores in Laconia

As I drive around the Lakes Region during this period of social distancing, I’ve been reflecting on how the second home market has totally shaped the Lakes Region into a very attractive mecca for the entire northeast. Without question, it has created a tremendous positive impact for our entire state. The second homes that have been constructed over the years have generated economic activity and population growth that likely would not have occurred without them.  

I look at the lakes and mountains of New Hampshire and compare it to the Maine coast and Cape Cod, all within hours of populous and prosperous metropolitan areas. All three of these locations offer premier destinations, affluent professionals, and semi-retires seeking a vacation or retire to a slower pace of living amid attractive natural surroundings with ample recreational and cultural opportunities. We’re basically New England’s playground. Where would our towns that comprise the Lakes Region be today without second homes?

Seasonal homes represent approximately 10.4% of all housing units in the state. I believe only Maine and Vermont have higher concentrations of seasonal homes at 16.4% and 15.6%, respectively. The number of seasonal homes has grown steadily over the years with Belknap County, Carrol County, Coos County, and Grafton County, accounting for approximately 70% of the seasonal homes in the state. In Carroll County, approximately 41% of the housing stock involves seasonal homes. Next in line is Belknap County, with 30% of the inventory seasonal homes. 

All you have to do is ride around the lakes in our region and take a trip up to Mount Washington Valley, and you will see the highest concertation of seasonal homes. In Moultonborough, which has 66 miles of shorefront, 60% of all housing units are seasonal homes. In Tuftonboro, the percentage is 53%, and in Alton, it is 45%. Even in Laconia, the Lakes Regions’ largest city, approximately 25% of the housing stock involves seasonal second homes. A large percentage of these homes were built during the go-go 1980s and another very strong wave of new second homes was built between 2000-2010. If you drive up the road to Newfound Lake, approximately 1/3-1/2 of the homes in the four towns bordering the lake are seasonal. 

The construction of second homes in the Lakes Region has had a profound impact on all the municipalities surrounding the lakes where they are most concentrated. The economic impact has been tremendous, the assessed evaluation of these homes has contributed immensely to the total assessed evaluation for the individual towns and the second home market has likewise helped the individual towns lower their tax rates. Take, for example, Laconia, both South Down Shores and Long Bay on Lake Winnipesaukee combined contribute somewhere in the area of $3.4 million in annual tax revenue to the city. This represents somewhere around 11% of the city’s tax assessment revenue. Can you imagine Laconia trying to survive today without this revenue from just these two developments? Furthermore, these communities have a minimal impact on the school systems and they maintain their own road networks through their association. If you look at the new middle school and the new fire department addition, revenue from communities like South Down and Long Bay have contributed significantly to those types of expenditures. 

In Moultonborough with its 66 miles of shorefront, do the math and figure out how many homes are on the lake. At Suissevale, one of the larger lakeside communities in that town, the community has generated approximately $1,679,665 in annual tax revenue. In Balmoral, roughly $740,957 was generated in annual tax revenue towards the town’s annual expenses. With the amount of substantial shorefront on the ‘big lake,’ there is no wonder that Moultonborough’s tax rate of $7.15 per thousand is one of the lowest in the state. With the percentage of second homes in Moultonborough at 60%, you can see what the economic impact second homes have had on this municipality. 

There is no question that the influx of second homeowners and retirees has enlivened commerce in the region. The construction, furnishing, and maintenance of second homes have employed contractors, tradesmen, surveyors, furniture stores, realtors, bankers, and attorneys. The seasonal residence of these homes also creates a huge demand for a variety of good and services and provide patronage for entertainment venues like the Bank of New Hampshire Pavillon in Gilford, The Winnipesaukee Playhouse, Funspot, tons of restaurants and eateries, Mount Washington Cruises, Castle in The Clouds and Gunstock Mountain Resort during both the winter and summer seasons with its expanded summer programs and attractions. 

As the Baby Boomers retire, New Hampshire will always remain a popular destination for those seeking a home for vacation or retirement. I also believe that many of our younger generation who have left the Lakes Region to seek their fortunes and new job opportunities will be among those who return to enjoy the fruit of their labor. After all, we’re like birds…we migrate to the place where we grew up.  

Frank Roche is the President of Roche Realty Group with two offices in Meredith (603) 279-7046, Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, NHand Laconia (603) 528-0088. You can learn more about the company and research a wealth of real estate information at: www.rocherealty.com

Moving into new home young happy couple celebrating toast Champagne

Buying a Home? Follow These Tips & Tricks

Spring has officially arrived and launches the beginning of our spring selling season for real …

Read More →
Marketing

How Marketing Real Estate Has Evolved

Back in the year 2000, the world was at the beginning stages of a major …

Read More →
Mount Washington, New Hampshire

New Hampshire — 30 Reasons to Move Here!

With lakes, beaches, mountains, forests, rivers, and the ocean for people who enjoy the outdoors, …

Read More →
New Hampshire Ski Resort

Ski Resorts in New Hampshire Are Ready for Spring Skiing!

It’s been a good week, and mother nature hit our region with a blanket of …

Read More →
Market Trends

Real Estate Market Trends to Follow

I’ve been pulling up some current research on the real estate market on a national, …

Read More →
Carol Mattice

Roche Realty Group Welcomes Carol Mattice

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2022

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently announced …

Read More →
Lisa Lewis

Lisa Lewis Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Wanda Keenan

Wanda Keenan Joins Roche Realty Group

Meredith— Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, …

Read More →
Land for sale

Buy Land in New Hampshire — They’re Not Making it Anymore

The science is in and the more trees a state has, the happier and less …

Read More →
The Price of Real Estate

Did The Price of Real Estate Increase in Your Town?

Everyone’s always interested to see how their real estate values have performed over the past …

Read More →
Laid off employee in recession

Are We Headed into a Recession?

It’s pretty big news lately; Microsoft, Amazon, and other tech companies have laid off more …

Read More →
Price Reduced

2022 vs. 2021 — Is The Lakes Region’s Frenzied Market Over?

It’s that time of year to provide all of you with an update on real …

Read More →
Roche Realty Meredith

Roche Realty Group Reports a Record of $181 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc, …

Read More →
Hillside Inn Winter

12 Things To Get You Through The Winter Months

On December 21st, the winter solstice marked the start of when days will begin to …

Read More →
Housing Inventory Lacking - Lake Winnisquam, NH

Lake Winnisquam, NH’s 4th Largest Lake is in Strong Demand

There are literally 273 lakes, ponds and rivers to enjoy in New Hampshire’s Lakes Region. …

Read More →
Interest Rates

Will We Ever See 1980s Interest Rates?

I was with a Realtor® friend of mine this past week, and we discussed what …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

Squam Lake — a Lakes Region Treasure

This past summer, I was invited for lunch and a nice boat ride around Squam …

Read More →
Shop Local New Hampshire

Small Business Saturday in New Hampshire!

We have many things to be thankful for here in New Hampshire, plenty of natural …

Read More →
Couple downsizing to smaller home

Does Downsizing Your Home in Lakes Region Make Sense?

There are many things to consider when planning to sell your home to downsize into …

Read More →
Newfound Lake, New Hampshire

Newfound Lake is the 8th clearest lake in US

Newfound Lake is the 8th clearest lake in the United States New Hampshire has a …

Read More →
Echo Lake New Hampshire

New Hampshire Rankings are Impressive!

New Hampshire has always been fortunate to land in many of the country’s top 10 …

Read More →
Lakeside at Paugus Bay

Impressive New Construction in the Lakes Region

For new construction sales in New Hampshire’s Lakes Region, 2022 has shown very impressive results. …

Read More →
Inflation and housing prices

How Inflation Impacts Lakes Region Housing Prices

I was out with a friend this week on Squam Lake, and we were talking …

Read More →
Picture of author in the Grand Canyon

Is Lake Region Real Estate Drying Up Like The Southwest?

I just returned from a trip to Nevada, Arizona, and Utah this past week. Put …

Read More →
Brook Hill at Meredith: New luxury homes in Meredith, NH

Brisk Sales at Brook Hill in Meredith

Meredith— Sales at Brook Hill, a new luxury townhouse community in Meredith, have been exceptional …

Read More →

Impressive Sales at Lakeside at Paugus Bay

Laconia— Sales at Lakeside at Paugus Bay, a new luxury waterfront condominium community on Lake …

Read More →

Four Decades of Change in Lakes Region Real Estate

We were talking in the office the other day regarding how much the real estate …

Read More →
Supply and demand graph, real estate housing

The driving forces in the demand for NH housing

It is no secret that our country has seen some incredible growth in the real …

Read More →
Holderness, NH

Holderness Bridges Big Squam and Little Squam

Holderness is a lakeside community in the foothills of the white mountains on New Hampshire’s …

Read More →
high inflation

Energy & Ukraine Crisis Compared to 1970s Inflation

Russia’s invasion of Ukraine has emerged as a black swan event rattling the world during …

Read More →
Tilton, NH

Tilton — The Gateway to New Hampshire’s Lakes Region

Tilton, New Hampshire, is considered the gateway to New Hampshire’s beautiful Lakes Region because of …

Read More →
Map of USA: How Real Estate Trends affect the Lakes Region

How Real Estate Trends Affect the Lakes Region

New Hampshire’s Lakes Region & New Hampshire Can you believe a new analysis from Zillow …

Read More →
Laconia NH

Laconia, NH — A City on the Rise

The 17,000 resident “City on the Lakes” is nestled on the shores of three of …

Read More →
Two ice sailing enthusiasts on Lake Winnipesaukee.

Waterfront Sales Activity and Real Estate News

Here’s an update on the waterfront sales activity that we experienced over the past two …

Read More →
Tuftonboro, NH

Tuftonboro — “The Diamond in The Heart of New Hampshire”

Located just west of Wolfeboro, Tuftonboro is called “The Diamond in the Heart of New …

Read More →
Aerial view of Lake Winnisquam and Sanbornton, New Hampshire

The Rural Character of Sanbornton, New Hampshire

Sanbornton embodies all that one expects to find in an old New England town. This …

Read More →
Castle in The Clouds is one of Moultonborough's largest attractions.

Moultonborough’s 66 Miles of Shorefront Captivates

By landmass Moultonborough, NH is the largest lakefront community in the Lakes Region with 59.7 …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2021

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently …

Read More →
Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro: a Brief History Nestled in the foothills of the White Mountains and on the …

Read More →

Roche Realty Group Reports Record of $170 Million in Sales

Meredith- Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and Laconia, has …

Read More →
Meredith NH

Gilford and Meredith NH – How Do They Compare?

There are 25 towns and cities comprising the Lakes Region. This week I thought I …

Read More →

EM Heath, LLC Acquires 1084 Union Ave in Laconia

The future of Ace Hardware EM Heath LLC in Laconia became solidified this past week …

Read More →
Roche Realty Group Sells Landmark Commercial Building in Gilford, NH

Roche Realty Group Sells Landmark Gilford Commercial Building

Gilford- One of the most visible, historic landmark commercial properties in New Hampshire’s Lakes Region …

Read More →
New Commercial Constructioin in Lakes Region

Commercial Sales Increasing in the Lakes Region

Recently I’ve been outlining the sales activity for residential, waterfront, and multi-family apartments in the …

Read More →
Laconia NH Commercial Building Sale

New Owner for 8,447 Sqft. Commercial Building in Laconia

Laconia— Exciting news for the downtown Laconia district. Another substantial commercial building, including approximately 8,447 …

Read More →

Strong Demand for Multi-Family Apartments in NH’s Lakes Region

Last week I was driving through Loudon Road in Concord in the busy heights area, …

Read More →
NH Lake

Area Lakes Show Considerable Appreciation

Below you will find data and insight into what’s happening in sales activity on 8 …

Read More →
inflation in shopping center / grocery store

More Inflation Concerns

More Inflation Concerns I submitted an article a while ago titled “Is Our Current Inflation …

Read More →
Alpenrose Village Retail Center located at Rte. 11 B / Rte. 3 in Weirs Beach, Laconia

Roche Realty Group Sells Alpenrose Village Retail Center

Laconia, NH – Tom Drouin of Roche Realty Group in Meredith represented both the seller and the …

Read More →

Leave a Comment