How much does a second home cost per year?

A workable floor: property tax plus 1% of value in maintenance plus insurance and service — then add the opportunity cost of the capital, net of appreciation. On a $900K house that lands well into six figures a year all-in, which is why the per-night figure surprises owners.

How many nights a year justify buying instead of hotels?

The break-even is where true cost per night meets your comparable hotel rate — for most inputs, for most inputs somewhere between 80 and 150 nights a year. At the 20–30 nights most second homes actually see, the hotel usually wins on money alone.

Doesn't appreciation cover the carrying costs?

Sometimes, in strong markets — the model nets appreciation against the market return your capital forgoes, so the comparison is fair. But at typical assumptions the gap between 2.5% house growth and 6% market growth is itself a carrying cost.

Second Home Cost Calculator — True Cost per Night Used

The manifest — your numbers

Currency symbol display only

Purchase price

All-in: price, transfer taxes, the works.

Property tax

% of value / yr

Insurance

Σ/ yr

Maintenance

% of value / yr

The 1% rule is the floor for a house that stands empty half the year.

Service, utilities, management

Σ/ yr

Everything that arrives whether you do or not.

Nights you'll actually use it

nights / yr

Last year's honest number, not the plan.

The hotel you'd book instead

Σ/ night

A comparable suite in the same place, in season.

House appreciation assumption

% / yr

Return if invested instead assumption

% / yr

Horizon

years

Selling costs at exit

% of value

Agent, taxes, the lawyer's lunch.

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The reading

The hotel wins, walking away.

$3,732

true cost per night actually used

The ledger

Carrying cost, each year	—
True cost per year, all in	—
True cost per night used	—
The hotel alternative, per year	—
Premium for owning, per year	—

Three levels of actually going

Nights a year	Per night	vs the hotel
—	—	—
—	—	—
—	—	—

What moves this result

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——
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What would sink this reading

Rental income isn't modelled. If you'd genuinely let it — with the management, wear and strangers that implies — subtract net rental from the carrying cost and re-read.

A hotel can't hold your grandmother's furniture or a standing invitation to twelve people. Utility beyond nights slept is real; it just deserves to know its price.

Appreciation is doing heavy lifting in resort markets. Run the scenario at 0% before believing the good number.

Next on the desk

No. 09 · Property · LiveCash or Mortgage at Your Bracket No. 01 · Capital · LiveTrue Cost of a Purchase No. 10 · Acquisitions · LiveCharter, Fraction or Own

Questions people bring to this desk

How much does a second home cost per year?: A workable floor: property tax plus 1% of value in maintenance plus insurance and service — then add the opportunity cost of the capital, net of appreciation. On a $900K house that lands well into six figures a year all-in, which is why the per-night figure surprises owners.
How many nights a year justify buying instead of hotels?: The break-even is where true cost per night meets your comparable hotel rate — for most inputs, for most inputs somewhere between 80 and 150 nights a year. At the 20–30 nights most second homes actually see, the hotel usually wins on money alone.
Doesn't appreciation cover the carrying costs?: Sometimes, in strong markets — the model nets appreciation against the market return your capital forgoes, so the comparison is fair. But at typical assumptions the gap between 2.5% house growth and 6% market growth is itself a carrying cost.

Methodology — the formula, printed

Everything below is calculated from your inputs except appreciation and market return, which are assumptions you control.

carry      = P·(tax% + maint%) + insurance + service
g          = (1+r)^n
wealth_cost = P·g + carry·(g−1)/r − P·(1+a)^n·(1 − sell%)
per_night  = (wealth_cost / n) / nights

The gauge reads the true nightly cost as a multiple of your comparable hotel, with the parity line at 1×. Under parity the house earns its keep in cash terms; the house calls anything past 2.5× a decision made for reasons money should at least get to see.

Limitations. Straight-line annualisation of the horizon cost slightly flatters early years; rental offset, furnishing, and the cost of your time managing it are not modelled. Taxes on the eventual sale vary by jurisdiction and are folded into your selling-costs figure.

Second Home Carrying Cost