Top 10 Places to Purchase a Vacation Home
The second home market is starting to slow, so it might be time to finally buy that vacation home that you’ve been considering. Start planning the location that best fits you and your financial needs going into the 2022 market! These trends may bring a new opportunity for an investment.
Second home buyers’ budgets are usually capped at $399,999 and 46% of them hope to generate passive income immediately through renting via a Vacasa survey. These top 10 locations met both these requirements in 2021, so check them out! Number 7 is even in California!
Want to purchase a vacation home?
10. Ludlow, Vermont
Median home price: $346,950
Annual gross rental revenue: $42,638
Vacation rental market cap rate: 5.2%
Ludlow has become a great vacation spot for outdoor lovers, as it is close by to Okemo Mountain Resort and Buttermilk Falls.
9. Seaside, Oregon
Median home price: $466,086
Annual gross rental revenue: $45,249
Vacation rental market cap rate: 5.2%
Water lovers enjoy kayaking and windsurfing in this town and can easily walk or bike to get around.
8. Deep Creek Lake, Maryland
Median home price: $439,367
Annual gross rental revenue: $51,031
Vacation rental market cap rate: 5.7%
Deep Creek Lake is the largest inland lake of Maryland popular for boating, tubing, and waterskiing. When it’s closed for the winter, people like to ski, snowboard, snowshoeing, and sleigh rides.
7. Palm Springs, California
Median home price: $539,370
Annual gross rental revenue: $52,784
Vacation rental market cap rate: 5.9%
Palm Springs is a popular vacation spot on the West Coast for those who like warm weather. With many restaurants and modern desert homes, people enjoy hanging by the pool.
6. Blue Ridge, Georgia
Median home price: $290,934
Annual gross rental revenue: $38,266
Vacation rental market cap rate: 6.1%
Blue Ridge is on the border of Tennessee and Georgia and has many outdoor activities for guests including hiking, horseback riding, and seeing 16 waterfalls or attend their fall orchard festivals.
5. Norris Lake, Tennessee
Median home price: $343,907
Annual gross rental revenue: $42,450
Vacation rental market cap rate: 6.2%
Norris Lake is a short drive to Knoxville and a great place to do stand-up, kayak, wakeboarding, paddleboarding because of it’s 52 square miles.
4. Dauphin Island, Alabama
Median home price: $382,699
Annual gross rental revenue: $43,371
Vacation rental market cap rate: 6.8%
Dauphin Island homes uncrowded white beaches and is a family-friendly vacation spot.
3. Gulf Shores, Alabama
Median home price: $402,905
Annual gross rental revenue: $46,107
Vacation rental market cap rate: 7.1%
Gulf Shores has many bars and restaurants as well as great water sports location, making it a popular vacation spot to many.
2. St. Augustine, Florida
Median home price: $365,576
Annual gross rental revenue: $46,557
Vacation rental market cap rate: 7.4%
St. Augustine has the No.1 Whiskey tour in America at their St. Augustine Distillery. It also boasts beautiful beaches and very historic downtown.
1. Gatlinburg, Tennessee
Median home price: $320,111
Annual gross rental revenue: $47,328
Vacation rental market cap rate: 8.6%
Gatlinburg homes North America’s longest pedestrian suspension bridge called Skylift Park and Anakeesta adventure park. It also made the top of the list because the median sale price of homes is $320,000 with a cap rate of 8.6%
Want to get a second home in Palm Springs?
Source: Yahoo News