U.S. Cabin Market Cools as Pandemic-Era Boom Fades, Interest Rates Bite
BEITOSTØLEN, Norway — The once-scorching U.S. cabin market is experiencing a significant slowdown, mirroring trends seen in other nations, as the confluence of factors that fueled a pandemic-era boom has given way to economic realities. Increased construction during COVID-19 lockdowns, coupled with rising interest rates and inflated building costs, are being blamed for a “terribly sluggish” market, according to industry experts.
“The new cabin market has had very low activity,” said Carl christian Mathiesen, a cabin expert at the Forecast Center. The situation is a stark contrast to the frenzied buying seen during the height of the pandemic when manny Americans, flush with stimulus checks and eager to escape urban density, sought refuge in rural getaways.
While sales of existing cabins have remained relatively stable, it’s the market for newly constructed cabins that’s facing the biggest challenges. Mathiesen believes this downturn is not a temporary blip but a sign of a new normal.
Henning Lauridsen, CEO of Real Estate Norway, echoed Mathiesen’s sentiments, emphasizing the role of global economic uncertainty. “We know that the world is changing quite sharply, and people are less interested in buying a new cabin when you will then sell their used cabin when the new one is completed in a year and a half.” He added, “There are higher interest rates, and a new cabin is more expensive than one used on average… It takes a lot to get a new cabin at that price.”
The average price of a mountain
