Top 25 Places to Buy a Vacation Home

Vacasa just released its 2021 Top 25 Places to Buy a Vacation Home report.  Researchers factored in average cap rates or yearly ROI in determining its rankings.

Vacasa’s 2021 Top 25 Places to Buy a Vacation Home Report

Vacation homes have been in high demand since the onslaught of the COVID pandemic.  However, that demand is beginning to slow and creating more opportunities via more affordable inventory within this market niche.

Vacasa’s 2021 report on the top places to buy a vacation home is a must-see for potential investors in this vacation home market.

Vacation Home Market Conditions Shifts

According to Shaun Greer, vice president of sales and marketing at Vacasa, said, “Market conditions are always shifting, but the accelerated and lasting adoption of short-term rentals during the pandemic has had a clear impact on second-home sales.  The spike in guest demand and preference for new, more remote destinations is changing where prospective buyers can find the best investment properties.”

One result of strong guest demand is an uptick in first-time real estate investors.  Another result is an uptick in second homeowners renting out their properties for the first time.

Wants of Vacation Home Buyers

Most buyers (36.4%) who are currently active in the vacation home market want to spend less than $399,999.  These buyers’ spending wants are fairly aligned with the median home sale prices in many of Vacasa’s top picks.

Also, most buyers (46%) want their vacation home investments to generate rental income immediately.

Vacasa’s researchers most definitely factored in average cap rates and/or yearly ROI when they put together this year’s rankings on second-home properties.

Top 25 Places to Buy a Vacation Home in 2021, according to Vacasa: 

                                   Med. Sale Price             Cap Rate

1. Gatlinburg TN –           $320,111                       8.6%
2. Augustine FL –            $365,576                       7.4%
3. Gulf Shores AL –         $402,905                        7.1%
4. Dauphin Island AL –    $382,699                        6.8%
5. Norris Lake TN –         $343,907                        6.2%
6. Blue Ridge GA –          $290,934                        6.1%
7. Palm Springs CA –       $539,370                        5.9%
8. Deep Creek Lake MD – $439,367                        5.7%
9. Seaside OR –               $466,086                       5.2%
10. Ludlow VT –                 $346,950                       5.2%
11. Big Bear CA –               $372,667                       5.1%
12. Rockaway Beach OR –   $330,.831                      5.0%
13. Cle Elum WA –             $551,586                        4.8%
14. Big Sky MT –                $850,000                        4.8%
15. Twentynine Palms CA – $263,897                         4.8%
16. Killington VT –              $317,336                         4.7%
17. Bear Lake UT –             $383,734                         4.6%
18. Litchfield Beach SC –     $499,259                         4.5%
19. Pagosa Springs CO –      $361,320                        4.3%
20. Banner Elk NC –             $331,290                        4.3%
21. George Island FL –         $471,501                        4.2%
22. Ellijay GA –                    $281,402                        4.2%
23. Florissant CO –               $367,000                        4.0%
24. Corolla NC –                   $608,953                        3.9%
25. Holden Beach NC –         $580,847                         3.4%

Thanks to Vacasa.