Owning and letting of second homes: What are the drivers? Insights from Denmark

Morten Skak*, Gintautas Bloze

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Second homes create welfare for the owner who uses the home for own recreational purposes and for tenants when the home is rented out. In addition, second homes typically generate positive externalities locally, such as seasonal job creation. The letting of second homes opens for a more intensive use of the homes and for their importance for a country’s tourism industry. This paper investigates the drivers of the decision to rent out private second homes, an area which is much less studied than second homeownership. The empirical analysis is carried out on survey data from 2386 randomly selected Danish households combined with data from administrative registers. The analysis reveals that the strongest drivers of the decision to rent out are the age of the owner of the second home and the equity of the home. Young households with low equity have a high propensity to rent out.

Original languageEnglish
JournalJournal of Housing and the Built Environment
Volume32
Issue number4
Pages (from-to)693-712
ISSN1566-4910
DOIs
Publication statusPublished - 2017

Keywords

  • Denmark
  • Letting
  • Ownership
  • Renting
  • Second home
  • Tourism

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