The Hidden Risk of Keeping Your Second Home in Los Altos
Timothy Alston | Broker
Aegis Luxury Real Estate · DRE# 01328224
Published
June 07, 2021
Timeless suburban elegance
If you own a second home and the pandemic that drove you to buy it is now behind you, you may be sitting on significant equity you have not thought about in a while. Home values across high-demand markets rose by double digits in recent years, and many second home owners in the Los Altos area are now holding an asset worth tens of thousands more than what they paid. The real question is: what does keeping it actually cost you?
You know how it felt when everything shifted and your primary home suddenly stopped working for your life? Not enough space, no good place to focus, kids everywhere, no separation between work and everything else? A lot of people in and around Los Altos made a smart move at the time. They bought a second home to solve a very real, very immediate problem.
But here is the part most people have not stopped to think about yet. The problem that second home was bought to solve, is that problem still the same today?
What Does Your Situation Actually Look Like Right Now?
Think about how you are actually using that second home now. Are you getting there most weekends? Is it serving the same purpose it did when you first bought it? Or has life quietly shifted back toward theaters, restaurants, travel, and the rhythms that slipped away for a while?
What would you change about your current setup if you could redesign it today, from scratch?
According to Zelman and Associates, second home sales rose 27% during the height of the pandemic, far outpacing the 9% increase in primary home sales. That surge was driven by real need. More space, more safety, more room to breathe. Those were legitimate reasons. But real estate markets rewarded those buyers in ways that go well beyond lifestyle. Home price indexes from FHFA, CoreLogic, and S&P Case-Shiller all showed appreciation in the 11 to 14 percent range during that same period.
In practical terms: if you purchased a second home for $500,000 during that window, you could be looking at a property now worth somewhere around $566,000 or more, depending on the market and when you bought. In a market like Los Altos homes for sale, where property values have historically held strong, that number could be considerably higher.
Have You Ever Stopped to Think About What Owning a Second Home Actually Costs?
Not just the mortgage. Property taxes. Insurance. Maintenance. HOA dues if there are any. Utilities running whether you visit or not. When you add it up across a full year, what does holding that second home actually cost you, every month, on a property you may only be visiting a handful of times?
And here is the deeper question. What would you do with that cash if you no longer had those expenses pulling on you every month?
A lot of homeowners in Los Altos are sitting with this exact tension right now. They bought a second home for reasons that made complete sense at the time. They built real equity in it. And now they are deciding whether to hold on to a lifestyle they bought for one version of their life, or unlock that equity and redirect it toward where their life is actually going.
Does that make sense as a framing? Because the math does not make the decision for you. Your situation does.
What Happens If You Keep Doing Nothing?
Here is a consequence question worth sitting with. If you keep paying the carrying costs on a second home you are using less and less, where does that leave you in three years? Five years? The equity does not disappear if you hold, but neither does the monthly drain. And markets do not appreciate at 13% every year.
What would it mean for your primary financial picture if you converted that equity into something liquid, or into something that actually matches how your life looks today?
Sellers in the Los Altos real estate market who have been holding second properties are finding that buyer demand, while not as frenzied as it was at peak pandemic, still supports strong valuations on well-located properties. The window to capture elevated equity is real. It is not permanent, and it is not guaranteed to hold at current levels as inventory and conditions continue to evolve.
The Smart Path Forward on Your Second Home
Based on conversations with homeowners navigating exactly this decision, there are really two honest paths. Keep the second home because it still genuinely serves your life and you want to continue using it regularly. Or sell, capture the equity you have built, and redirect that capital in a way that works for where you are going.
Neither path is wrong. The only wrong move is keeping a second home out of inertia while the carrying costs quietly drain resources you could put to work elsewhere.
Can you see how the answer is less about the market and more about your actual usage and your actual goals?
If you have been turning this over in your mind and want a straightforward look at what your second home might be worth in today’s market, and what selling it could actually put back in your pocket, that conversation does not have to be a big commitment. Timothy Alston, Broker, (DRE# 01328224) at Aegis Luxury Real Estate, is available for exactly that kind of no-pressure conversation. Not a pitch. Just an honest look at the numbers for your specific situation.
Would that be worth a quick call? Reach out at (408) 207-4593 and let’s take a look together.
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Serving districts: Los Altos SD (K-8), Mountain View-Los Altos Union High SD (9-12). School district boundaries can change; please verify current enrollment boundaries and program offerings directly with the school district.
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Broker · DRE# 01328224
Aegis Luxury Real Estate
Harvard Business School Online, Certified Master Negotiation
23+ Years Silicon Valley Real Estate Experience
Retired Military Veteran
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The data relating to real estate for sale on this display comes in part from the Internet Data Exchange program of the MLSListings™ MLS system. Real estate listings held by brokerage firms other than Aegis Luxury Real Estate are marked with the Internet Data Exchange icon and detailed information about them includes the names of the listing brokers and listing agents.
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Aegis Luxury Real Estate · Timothy Alston, Broker, DRE# 01328224 · 10080 N. Wolfe Rd Ste SW3-200, Cupertino CA 95014 · (408) 207-4593
Last updated: July 07, 2026 | Data reflects July 2026 MLS statistics
