Is Second the New First? How the Pandemic Transformed Second Homes into Permanent Residences
By Gusztáv Nemes
The COVID-19 pandemic has profoundly altered lifestyles worldwide, reshaping how and where people choose to live and work. For many urban dwellers, the allure of rural areas combined with the feasibility of remote work has led to a significant trend: converting second homes into permanent residences. In a recent study we explore this phenomenon in Hungary, shedding light on the socio-economic impacts and challenges this shift presents for rural development.
The Rural Appeal Amid a Global Pandemic
During the pandemic, countless urban residents across Europe sought refuge in the countryside, escaping crowded cities for open spaces and fresh air. The widespread adoption of remote work transformed these temporary retreats into viable long-term residences. This trend, already emerging before the pandemic, accelerated dramatically in 2020 and 2021 as lockdowns and social distancing measures made rural living more attractive.
In Hungary, this shift was particularly evident around the Lake Balaton region, a traditional holiday destination. The area experienced an influx of urban residents opting for a more permanent stay. The study found that many second-home owners decided to relocate full-time, altering the dynamics of these rural communities and placing new demands on local infrastructures and services.
Opportunities and Challenges of a Booming Trend
The transformation of second homes into primary residences brings both positive impacts and significant challenges to rural areas:
Economic Boost: Rural gentrification—where affluent city dwellers move to the countryside—can invigorate the local economy. Increased demand for services like restaurants, shops, and healthcare can create jobs and stimulate growth in regions that have historically been underserved.
Infrastructure Strain: Rural areas often lack the infrastructure to support a sudden increase in permanent residents. Services such as healthcare, education, and public transport may become overstretched, affecting both new and long-standing residents.
Rising Property Prices: An influx of wealthier residents can drive up property prices, making it difficult for local populations to afford housing and potentially leading to displacement.
Social Tensions: Differences in values and lifestyles between new residents and established rural communities may lead to social friction. Integration challenges can arise if newcomers are perceived as outsiders reshaping the community without fully engaging with local traditions and needs.
The Budapest-Balaton Connection
The study highlights the significant role of migration patterns between Budapest and the Balaton region in rural gentrification. Many new rural residents are from Budapest, attracted by the natural beauty, proximity to the capital, and availability of essential services near Lake Balaton. With real estate prices soaring in the city, relocating to second homes became an attractive alternative.
This trend, however, is not evenly distributed across Hungary. While regions like Lake Balaton have seen rapid growth, other rural areas have not experienced the same level of urban migration due to less attractive living conditions or inadequate infrastructure. This creates a geographical imbalance in rural development, with certain areas benefitting disproportionately.
The Need for Strategic Planning
As the shift from second homes to primary residences continues, strategic planning becomes essential to ensure sustainable rural development:
Infrastructure Investment: Enhancing local infrastructure is crucial. Investments in healthcare, education, public transportation, and digital connectivity can support both existing and new residents.
Sustainable Development: Policymakers should focus on balancing growth with environmental sustainability, preserving the natural landscapes that make rural areas appealing while accommodating increased population densities.
Community Integration: Encouraging collaboration between newcomers and long-standing residents can foster social cohesion. Community programs and local initiatives can help bridge cultural divides and promote mutual understanding.
Housing Policies: Implementing measures to control property speculation and ensure affordable housing can protect local residents from being priced out of their communities.
Conclusion: A Lasting Transformation of Rural Life
The pandemic has accelerated a transformation that could reshape rural areas in Hungary and beyond. The conversion of second homes into permanent residences presents economic opportunities but also significant challenges that require thoughtful policy responses. By addressing infrastructure needs and promoting social integration, rural communities can harness the benefits of this migration trend while mitigating its downsides.
As remote work becomes a permanent fixture for many, second homes are no longer just holiday getaways—they represent a new way of life. This shift ushers in a wave of rural gentrification with lasting effects on the countryside. Embracing strategic planning and inclusive policies will be key to ensuring that rural areas thrive in this new reality.
Sulyok, J., Nemes, G., Orbán, É., & Tomay, K. (2024). ‘Is Second the New First?’–The Conversion of Second Homes Into Primary Ones During and After the COVID-19 Pandemic. European Countryside, 16(1), 64-85.
https://doi.org/10.2478/euco-2024-0005
