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Economic Contributions of Seasonal Residents <br /> `., For local residents, many second homeowners are not only part-time neighbors, but also important <br /> clients and customers. Local spending by second homeowners can be a powerful economic driver; <br /> however, some local residents question the extent to which that spending spills into local <br /> communities and whether many of the goods and services purchased by second homeowners are <br /> purchased in the communities where their primary homes are located. Considering these <br /> perceptions, an important part of our survey measured household spending of second homeowners <br /> and estimated the extent to which their spending happens in their second home county. <br /> We asked survey participants to estimate their monthly expenses in a limited set of common <br /> spending categories, such as gas/auto service and pharmacy, as well as their annual spending on <br /> remodeling or construction.We then asked participants to estimate how much of their spending in <br /> each category occurred in the county where their second home is located. In all, 85 percent of survey <br /> participants responded to this section. <br /> Seasonal residents are making significant contributions in the counties and communities in which <br /> their second homes are located,with an estimated $3,252 in annual median spending in those very <br /> communities within selected purchasing categories. The category of expenditures that captures the <br /> greatest share of total median spending is grocery and liquor. Respondents report that purchases in <br /> this food category amount to $64 per month at their second homes. In contrast, few report any <br /> spending in their second home counties on pharmacy goods and services. Focusing on how second <br /> home householders spend dollars across these seven selected categories, five clearly stand out,with <br /> more than 80% of respondents reporting some spending on the following: groceries/liquor, gas/auto <br /> service, restaurants/bars, home maintenance, and entertainment/recreation.The median spending <br /> by category ranged from $33 to $64 per month, and a large percentage of respondents report <br /> making these purchases locally. <br /> Median Average %of <br /> Monthly Monthly Households <br /> Household Household Reporting <br /> Spending Spending Annual Any <br /> in 2nd in 2nd Spending Spending in <br /> Home Home Based on 2nd Home <br /> Spending Category N County County Median County <br /> Grocery/Liquor 451 $64 $120 $768 89% <br /> Dining/Bars _ 442 $40 $74 $480 85% <br /> Gas/Auto Service _ 447 , $50 $74 $600 84% <br /> Pharmacy 383 $11 18% <br /> Home Maintenance 420 $50 $95 $600 81% <br /> Entertainment/Recreation 429—i $34 +— $75 $408 81% <br /> Construction/Remodeling 491 $33 $1,066 $396 59% <br /> Totals for Selected Categories $271 $1,515 $3,252 <br /> Table 3:Spending in county in selected categories where second home is located,as <br /> reported by respondents <br /> Total average monthly household spending is skewed by very large and expensive <br /> construction/remodeling projects reported by a few respondents. Median—or mid-point—spending <br /> estimates provide a more accurate picture of expenditures for all respondents. The authors assume <br /> that median monthly spending is most accurately magnified to median annual spending using 12 <br /> Second Homeowners of Central and West Central MN 15 <br />