The Central and West Central Minnesota Seasonal Resident Study profiles the demographic and social profile of second homeowners and estimates their impacts on nearby communities. The research finds that seasonal residents bring a wealth of talent and resources to Minnesota's lakes district and a majority plan on migrating to their second home permanently." Is that good?

1. © 2012 Regents of the University of Minnesota. All rights reserved.
Seasonal Residents and Economic
Development
RYAN PESCH, EXTENSION EDUCATOR

2. © 2012 Regents of the University of Minnesota. All rights reserved.
SEASONAL RESIDENTS

3. © 2012 Regents of the University of Minnesota. All rights reserved.
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%)

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WHAT KIND OF PEOPLE OWN
SECOND HOMES?
0
20
40
60
80
100
120
140
160
180
200
Less than
40
40-49 50-59 60-69 70 and
over
Respondents by Age
Categories (n=561)
0
20
40
60
80
100
120
140
160
180
200
No HS
diploma
HS
Diploma
Some
college
Associate
degree
Bachelors
degree
Graduate
degree
Respondents by Education
(n=565)

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WHAT KIND OF PEOPLE OWN
SECOND HOMES?
Respondents by Employment
Status (n=549)
Employed Unemployed Retired
0
20
40
60
80
100
120
140
160
180
200
Respondents by HH Income
(n=510)
53% of respondents have owned, operated, or played
a significant management role in a business

6. © 2012 Regents of the University of Minnesota. All rights reserved.
WHAT KIND OF PEOPLE OWN
SECOND HOMES?
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

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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

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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

9. © 2012 Regents of the University of Minnesota. All rights reserved.
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)

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SECOND HOME USE
0 100 200 300
1 to 2 people
3 to 4 people
5 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)

11. © 2012 Regents of the University of Minnesota. All rights reserved.
SECOND HOME USE
0
2
4
6
8
10
12
14
16
18
Average Days per Month
93 Days
Total on
Average

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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 12
months
1-5
years
6-10
years
More
than 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.

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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)

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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
Disagree Don't Know Agree

15. © 2012 Regents of the University of Minnesota. All rights reserved.
COMMUNITY ATTACHMENT
I feel strongly attached to my
second home property
Disagree Don't Know Agree
I feel strongly attached to
the community near my
second home
Disagree Don't Know Agree

16. © 2012 Regents of the University of Minnesota. All rights reserved.
COMMUNITY CONNECTIONS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Held public
office Held leadership
Volunteered in
comm org Involved in
community org Made donation
Community Connection by Residence (n=522)
In 2nd home Would consider At home

17. © 2012 Regents of the University of Minnesota. All rights reserved.
COMMUNICATIONS
0
50
100
150
200
250
300
350
How do you learn about news and events? (n=559)
Typical Prefer

18. © 2012 Regents of the University of Minnesota. All rights reserved.
CONVERSATION
 What has been the experience of your
community with seasonal residents?
 How best to integrate seasonal residents?

19. © 2012 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. This PowerPoint is available in alternative formats
upon request. Direct requests to 612-625-8233.
Thanks
pesch@umn.edu
218-770-4398