Vacation homes are in demand since the pandemic, but which hot spots are consumers targeting that offer some of the best investment potential?
Vacasa, a vacation rental management platform, released its 2021 Top 25 Best Places to Buy a Vacation Home report, identifying the top U.S. destinations for purchasing a vacation rental property. Among other factors, researchers factored in average cap rate or yearly rate of return in determining the rankings.
“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,” said Shaun Greer, vice president of sales and marketing at Vacasa. “The spike in guest demand and preference for new, more remote destinations is changing where prospective buyers can find the best investment properties.”
Gatlinburg, Tenn., topped this year’s list, climbing four spots from 2020. Newcomer cities claimed more than half of the spots in 2021, including Deep Creek Lake, Md., Cle Elum, Wash., Litchfield Beach, S.C., and Twentynine Palms, Calif.
The following are the top 25 places to buy a vacation home in 2021, according to Vacasa’s rankings:
- Gatlinburg, Tenn.: $320,111 (median home sale price)
- St. Augustine, Fla.: $365,576
- Gulf Shores, Ala.: $402,905
- Dauphin Island, Ala.: $382,699
- Norris Lake, Tenn.: $343,907
- Blue Ridge, Ga.: $290,934
- Palm Springs, Calif.: $539,370
- Deep Creek Lake, Md.: $439,367
- Seaside, Ore.: $466,086
- Ludlow, Vt.: $346,950
- Big Bear, Calif.: $372,667
- Rockaway Beach, Ore.: $330,831
- Cle Elum, Wash.: $551,586
- Big Sky, Mont.: $850,000
- Twentynine Palms, Calif.: $263,897
- Killington, Vt.: $317,336
- Bear Lake, Utah: $383,734
- Litchfield Beach, S.C.: $499,259
- Pagosa Springs, Colo.: $361,320
- Banner Elk, N.C.: $331,290
- St. George Island, Fla.: $471,501
- Ellijay, Ga.: $281,402
- Florissant, Colo.: $367,000
- Corolla, N.C: $608,953
- Holden Beach, N.C.: $580,847
View more information on each place as well as the cap rates at vacasa.com.