2023: Top 25 Best Places to Buy a Vacation Home
Vacasa launched the Top 25 Best Places to Buy a Vacation Home report in 2018, and evolved the series to include our Best Places to Buy a Beach House and our Best Places to Buy a Winter Vacation Home reports. And, we’ve got to admit, five years of helping vacation rental buyers and sellers find a great place to buy a vacation home using our proprietary and market data feels about as nice as a cool breeze coming off the shores of the Outer Banks.
That said, our fifth annual report comes at an interesting time in the vacation rental market. Mortgage rates are higher than in the past few years, and while home prices have stabilized in some areas, inventory is still tight meaning buyers are not immune to the possibility of a bidding war for prime property. Additionally, while vacation rental occupancy (how many nights the home is rented) is slightly down across the industry in 2023, we know the steady stream of guests who opt for vacation homes over other accommodations and are bound to book regardless of other options available in the market due to the space and amenities only vacation rentals can provide.
Those looking to buy a vacation home and allow guests to rent on a short-term basis just found a great beach read as we’ve pulled together the Top 25 Best Places to Buy a Vacation Home based on cap rate, or annual rate of return on investment. We’ve done our homework on which vacation rental markets are still proving profitable based on our proprietary and market data.
If you are not in the market to buy, but are curious as to what your home could generate as a vacation rental, contact us for a personalized revenue estimate.
Market |
Cap rate |
Median home sale price |
|
|---|---|---|---|
1 |
10.32% |
$405,500 |
|
2 |
9.08% |
$360,000 |
|
3 |
6.47% |
$928,900 |
|
4 |
6.46% |
$618,000 |
|
5 |
6.42% |
$420,000 |
|
6 |
6.09% |
$475,000 |
|
7 |
5.69% |
$360,000 |
|
8 |
5.47% |
$927,500 |
|
9 |
5.45% |
$615,500 |
|
10 |
5.23% |
$340,000 |
|
11 |
5.11% |
$432,100 |
|
12 |
4.91% |
$405,000 |
|
13 |
4.51% |
$450,000 |
|
14 |
4.51% |
$740,000 |
|
15 |
4.16% |
$596,000 |
|
16 |
4.11% |
$425,000 |
|
17 |
4.06% |
$267,500 |
|
18 |
3.93% |
$648,800 |
|
19 |
3.88% |
$370,000 |
|
20 |
3.77% |
$700,000 |
|
21 |
3.76% |
$725,000 |
|
22 |
3.75% |
$365,000 |
|
23 |
3.73% |
$858,500 |
|
24 |
3.65% |
$1,200,000 |
25 |
3.61% |
$273,200 |
Virginia’s third largest lake is a freshwater gem, with 200 miles of sandy shoreline and laid-back, rural charm.
Location
Lake Anna is located halfway between Fredericksburg and Richmond. The lake has two sections: a public side with waterfront restaurants, marinas and boat launches, and a private side only open to homeowners and their guests.
Top homes and amenities
Guests search for lakefront and waterfront homes first, prioritizing homes that allow dogs and offer a hot tub.
High season
Summer has the highest guest count. Though fall continues to draw fans with fall foliage hikes and fishing tournaments bring in anglers during the winter. Swim season stretches longer than usual, thanks to two power plants keeping the water warm on the private (or south) side.
Why guests book
The clean and calm freshwater landscape is the big draw here. Guests have plenty of water sports to choose from—from sailing to jet skiing, power boating to fishing. Nearby Lake Anna State Park offers 15 miles of trails for hiking, biking and horseback riding.
Guest profile
In the past year, 69% of bookings were for 3+ nights.
Cap rate |
10.32% |
Median home sale price |
$405,500 |
Annual gross rental revenue |
$64,121 |
A palm-studded paradise on the Gulf of Mexico, spanning three miles of white sugar sand beaches.
Location
Okaloosa Island sits on Santa Rosa Island, tucked between Destin and Fort Walton Beach.
Top homes and amenities
Most vacation rental options are in stately condo complexes spread across the island that boast large swimming pools and easy beach access—a Florida must.
High season
Okaloosa Island sees its biggest crowds (and highest vacation home rates) in the summer, as families take advantage of school break. The winter remains a favorite for snowbirds, who enjoy the quieter shores and lower rates.
Why guests book
Leave the car in the driveway. Nearly everything is within walking distance, including the downtown boardwalk with small shops and eateries dishing out margaritas and fresh-caught seafood. The Island Fishing Pier is the perfect spot to drop a line or enjoy a sunset stroll.
Guest profile
Every year, close to 5 million visitors1 descend on this area of the Emerald Coast, including Okaloosa Island, Destin and South Fort Walton. In the past year, 60% of bookings were for 4+ nights.
Cap rate |
9.08% |
Median home sale price |
$360,000 |
Annual gross rental revenue |
$53,832 |
A secluded idyll known for a vast white-sand coastline and a laid-back pace, a stark contrast to the bustling crowds of nearby Virginia Beach.
Location
15 miles south from Virginia Beach’s lively and boisterous resort area.
Top homes and amenities
Unlike Virginia Beach, there are no hotels in Sandbridge. Instead, guests book beach houses that stretch from end-to-end of the shore. Pet-friendly, waterfront homes with a pool take top priority.
High season
Despite its quiet reputation, Sandbridge fills up with overnight visitors in the summer. Spring’s balmy weather also draws savvy visitors looking to avoid the summer crowds.
Why guests book
Sandbridge’s relative, quiet isolation is its biggest allure. Five miles of sand dunes, sea grass and shoreline are a prime backdrop for building sandcastles, wandering the seashore and horseback riding. At nearby Back Bay National Wildlife Refuge, guests can hike, bike and look out for sea turtles and bald eagles.
Guest profile
Sandbridge guests tend to linger. More than half of the bookings were for 7+ nights this past year.
Cap rate |
6.47% |
Median home sale price |
$928,900 |
Annual gross rental revenue |
$88,702 |
Delaware’s most popular beach town draws visitors who love the nostalgic vibe of a throw-back boardwalk and whimsical attractions.
Location
On the shores of the Atlantic Ocean, close to the opening of Delaware Bay.
Top homes and amenities
Guests tend to prefer pet-friendly rentals right on the beach, especially those with a pool.
High season
The town bustles with large crowds between May and August when summer festivals are in full swing and there are endless outdoor activities. During the off-season, some attractions close or operate on limited hours.
Why guests book
Rehoboth Beach’s most charming quality is its mile-long promenade brimming with seaside eateries, nostalgic fairground fun and retro shops—earning its placement on National Geographic’s “Top 10 Boardwalks in the USA”. The area is also popular with LGBTQ travelers, thanks to its sophisticated dining options and nightlife.
Guest profile
Roughly 1,500 call Rehoboth Beach home, but the population swells to more than 25,000 in peak summer season.
Cap rate |
6.46% |
Median home sale price |
$618,000 |
Annual gross rental revenue |
$58,992 |
A serene Emerald Coast hideaway with miles of unspoiled white shores and translucent emerald waters.
Location
Nestled between popular Emerald Coast towns Destin and Pensacola.
Top homes and amenities
Naturally, the most sought-after spots are houses and condos that sit right on the Gulf (though our research shows most travelers search for the term ‘oceanfront’ versus ‘Gulffront’). Something else that guests want: A pool to go along with those Gulf views.
High season
Though Navarre Beach’s official slogan is “Florida’s Most Relaxing Place”, the area swells with crowds during spring break and May through August.
Why guests book
Navarre Beach entices outdoor enthusiasts with its bright white sand (actually naturally cooling Appalachian quartz) and sun-kissed days spent swimming, snorkeling and beachcombing. Visitors can cast their lines off of the Gulf’s longest pier or find respite at the Gulf Islands National Seashore—one of only 10 National Seashores.
Guest profile
Navarre visitors tend to choose condos over houses or townhouses, and mostly travel in small groups of 2-4 people.
Cap rate |
6.42% |
Median home sale price |
$420,000 |
Annual gross rental revenue |
$47,531 |
Small seaside town vibes and Southern hospitality. This underrated coastal city is gaining popularity among travelers as an alternative to jam-packed Florida panhandle shores.
Location
At the southernmost tip of Alabama between Mobile, AL and Pensacola, Fl (home to the nearest airport, just an hour away).
Top homes and amenities
About 85% of the vacation home options are condo units2. Like many Gulf Coast destinations, oceanfront locations and pools continue to be the most sought-after amenities in a Gulf Shores vacation home.
High season
Occupancy swells in the peak summer season, as families take advantage of school break. The year-round warm temperatures continue to reel in visitors during spring and fall, while an increasing number of snowbirds arrive in the winter to escape the cold.
Why guests book
Visitors come to bask on quiet beaches by day and dine on fresh-caught Gulf seafood by night. Also fun draws: amusement parks, tours to see bottlenose dolphins and endless water sports. Go beyond the beach and you’ll find 400,000 acres of meandering bayous and backwater canals.
Guest profile
Each year, the Alabama Gulf Coast (which also includes nearby Orange Beach) attracts 8 million visitors to its pristine shores. With 90% coming from regional drive markets in the Southeast and Midwest3.
Cap rate |
6.09% |
Median home sale price |
$475,000 |
Annual gross rental revenue |
$48,169 |
Rife with lush nature, golf courses, and unspoiled beaches—yet devoid of any chain restaurants or hotels—Palm Coast feels surprisingly authentic.
Location
Perched between St. Augustine and Daytona Beach along the scenic Route A1A.
Top homes and amenities
Waterfront houses with pools are most popular with vacation rental guests, as they look to take advantage of a low-key Florida coastal city without the crowds and balmy weather.
High season
Summer is prime time for Palm Coast, though even at full occupancy the city still offers a slower pace compared to overcrowded Florida shore towns. Savvy snowbirds are increasingly choosing Palm Coast as their winter go-to.
Why guests book
For a tranquil and laid-back escape. No massive spring break crowds here; you’re more likely to run into loggerhead turtles and manatees. Fishing, boating, kayaking and bird-watching among 125 miles of trails and lush nature preserves are all favorite activities here.
Guest profile
Almost 1 million4 visitors flock to this balmy shorefront every year.
Cap rate |
5.69% |
Median home sale price |
$360,000 |
Annual gross rental revenue |
$38,212 |
Corolla is known for its relaxed luxury, where travelers are just as happy kicking back in sandy flip-flops as they are indulging in upscale eateries and an afternoon at the spa.
Location
In the northernmost region of the Outer Banks, between the Currituck Sound and the Atlantic Ocean.
Top homes and amenities
Corolla vacation home real estate offers mostly spacious (even upscale and palatial) houses, with many guests expecting luxuries such as an oceanfront location, beach access and pools.
High season
Summer is your season for high occupancy. Though, fall is increasingly attracting more travelers with its warm waters and a better likelihood of snagging a coveted dining reservation at one of the town’s popular, ultra-modern restaurants.
Why guests book
Corolla is prized not just for its seclusion and natural beauty—calm sound waters, idyllic maritime forests and even wild horses, to name a few—but also for its sophisticated dining and boutique shopping scene. Most of the family-friendly fun happens at the beach, with surfing, shell collecting, swimming and fishing on offer.
Guest profile
The average group size is 4.9 people, mostly families or even multiple families. About 88% of stays are for 5 or more nights5.
Cap rate |
5.47% |
Median home sale price |
$927,500 |
Annual gross rental revenue |
$80,423 |
Nags Head has been a popular family-friendly escape since the 1830s, drawing visitors with its massive concentration of watersports, colossal sand dunes and 12 miles of sandy shores.
Location
At the southern end of the north Outer Banks.
Top homes and amenities
Real estate options consist of a mix of beach cottages and new, sprawling estates to choose from. Keep in mind that most guests are looking first for an oceanfront location, followed by pet-friendliness and an outdoor pool.
High season
Summer ushers in the biggest crowds to Nags Head, when humidity is high and temperatures hover at 80 degrees. More and more travelers are closing in on fall and spring, savvy to the fact that the warm temps stretch from May to October and most activities and attractions can be enjoyed—minus the crowds.
Why guests book
Beyond its warm beaches, the city’s main treasure is Jockey’s Ridge State Park, home to the largest sand dunes on the East Coast. Another area distinction—Jeanette’s Pier, the longest pier in the entire Outer Banks stretching 1,000 feet into the ocean. You’ll also find every type of shoreline sport, from kayaking to snorkeling past shipwrecks.
Guest profile
Though just an hour from Corolla, Nags Head tends to attract shorter stays. Only 35% of Nags Head reservations exceeded 4 nights.
Cap rate |
5.45% |
Median home sale price |
$615,500 |
Annual gross rental revenue |
$53,939 |
Where the mountains meet the sea, Rockaway Beach draws visitors with 7 miles of windswept shores studded with sea stacks—the perfect rugged backdrop for clamming, crabbing and exploring.
Location
An easy 90-minute drive from Portland, Rockaway is one of Oregon’s most easily accessed coastal destinations.
Top homes and amenities
The Oregon Coast is notoriously dog friendly. When guests search for vacation homes, the option to bring Fido along is a top priority, second only to an oceanfront address.
High season
Summer is high season, with occupancy swelling thanks to many Portlanders escaping the city heat. Oregonians have a special love affair with the coast and will continue to visit even as the temps dip for the chance of fall foliage hikes, whale spotting and winter storm watching.
Why guests book
With moss-covered old-growth forests, hikes offering sweeping Pacific Ocean views and funky shops and eateries in town, Rockaway Beach is seen as the ideal basecamp for exploring more of the coastline. Guests fish for rainbow trout in Lake Lytle and climb up Neahkahnie Mountain, then cozy up for a beach bonfire under starry skies.
Guest profile
Rockaway Beach visitors favor quick visits. 59% of reservations were 3+ nights and only 16% exceeded 4 nights on the coast.
Cap rate |
5.23% |
Median home sale price |
$340,000 |
Annual gross rental revenue |
$37,030 |
Cap Rate 5.11%
Average Revenue $39,086
Median Home Price $432,100
Explore Nashville >
Cap Rate 4.51%
Average Revenue $39,292
Median Home Price $450,000
Explore Bradenton >
Cap Rate 4.51%
Average Revenue $56,758
Median Home Price $740,000
Explore Hatteras Island, NC >
Cap Rate 4.11%
Average Revenue $36,511
Median Home Price $425,000
Explore Panama City Beach >
Cap Rate 4.06%
Average Revenue $29,922
Median Home Price $267,500
Explore Killington >
Cap Rate 3.93%
Average Revenue $50,886
Median Home Price $648,800
Explore Gatlinburg >
Cap Rate 3.88%
Average Revenue $33,788
Median Home Price $370,000
Explore Westport >
Cap Rate 3.77%
Average Revenue $53,072
Median Home Price $700,000
Explore Middle Keys >
Cap Rate 3.76%
Average Revenue $48,510
Median Home Price $725,000
Explore Edisto Beach >
Cap Rate 3.75%
Average Revenue $29,268
Median Home Price $365,000
Explore North Myrtle Beach >
Cap Rate 3.73%
Average Revenue $61,855
Median Home Price $858,500
Explore Anna Maria >
Cap Rate 3.65%
Average Revenue $74,088
Median Home Price $1,200,000
Explore Isle of Palms >
Cap Rate 3.61%
Average Revenue $28,018
Median Home Price $273,200
Explore Corpus Christi >
*Our methodology
To determine its ranking of top vacation rental markets, Vacasa analyzed home sales and vacation rental performance data from the last 12 months for vacation destinations throughout the country where Vacasa and its licensed subsidiaries manage vacation rentals. *To determine average gross rental income (homeowner revenue made from bookings, excluding any fees) for a market, we used actual performance data for the market as a whole, where available, except that Vacasa-only data was used for markets where Vacasa manages more than 50 units and actual Vacasa rental performance beats the market average by at least 25%. To calculate average cap rate, we considered the averages of the following in each market: property taxes, utilities, HOA fees, insurance, and property management fees.
Local regulations vary by jurisdiction and the transfer of a property to a new owner may affect its ability to be used as a vacation rental. Generally, all vacation rental regulations are subject to change, which may affect your ability to use a property as a vacation rental in the future. Buyers should always check current local regulations prior to making an investment decision.
Disclaimer
This document is for information and illustrative purposes only. It is not intended to provide “investment advice” or a “recommendation” regarding a course of action. The discussion is general in nature and has not taken into account your personal financial position or objectives. You should consult a licensed financial advisor or other professional to discuss your specific situation.
Estimated rental income figures and home sale prices are based on averages for a given market for the prior 12 months; for any specific property, the actual revenue, purchase price, and cap rate may differ materially from estimated amounts and depend on a wide range of factors outside Vacasa's knowledge or control, such as the property's condition, layout, and furnishings; expenses associated with the acquisition and ownership of the property (such as property taxes, utility fees, HOA fees, insurance fees, and mortgage-related expenses); rental calendar availability; existing and future regulations; current and future economic, social, and political trends and conditions; and weather and environmental factors. These estimates do not take into account the potential impact of state income taxes.
Many locations restrict or impose conditions on the use of properties as vacation rentals, or restrict vacation rentals to certain defined areas. Before purchasing a particular property as a potential vacation rental a buyer should confirm that the property can legally be used for this purpose.
Vacasa makes no representations or warranties, express or implied, about the accuracy of this document. Furthermore, Vacasa has no obligation to update, modify or amend this document or to otherwise notify users in the event that any opinion, assumption, forecast or estimate set forth herein changes or subsequently becomes inaccurate. Therefore, you should not place undue reliance on statements in this document.
California licenses
Vacasa Seasonals Inc.
California DRE #02160171
Vacation Palm Springs Real Estate, Inc.
California DRE #01523013
Vacasa offers property management and other real estate services directly through Vacasa LLC and through Vacasa LLC's licensed subsidiaries. Click here for more information about Vacasa's licensed real estate brokerage/property manager in your state. Vacasa’s licensed real estate brokerages/property managers include: Vacasa Alabama LLC; Vacasa Arizona LLC; Vacasa of Arkansas LLC; Vacasa Colorado LLC (Micah Victory); Vacasa Delaware LLC, 302-541-8999; Vacasa Florida LLC; Vacasa Illinois LLC 481.014072, Micah Victory Managing Broker Lic# 471.021837; Vacasa Louisiana LLC, Dana MacCord, Principal Broker, ph 504.252.0155 (Licensed in LA); Vacasa Michigan LLC, 602-330-9934; Vacasa Missouri LLC, Vicki Lyn Brown, Designated Broker; Vacasa Nevada LLC; Vacasa New Hampshire LLC,45 NH-25, Meredith, NH 03253, Susan Scanlon, Broker of Record; Vacasa Minnesota, Broker: Micah Victory, license #40877637; Vacasa New Mexico LLC, 503-345-9399; Vacasa New York LLC, 888-433-0068, Susan Scanlon, Real Estate Broker; Vacasa North Carolina LLC; Vacasa Oregon LLC; Vacasa Pennsylvania LLC; Vacation Palm Springs Real Estate, Inc., California DRE #01523013, Mark Graham, California DRE #00700720; Vacasa Real Estate LLC (licensed in Texas, Debra Brock, Designated Broker); Vacasa Real Estate LLC (licensed in Washington, Robert Brush, Designated Broker); Vacasa Seasonals Inc., California DRE #02160171, Lisa Renee Stevens, California DRE #01485234; Vacasa South Carolina LLC; Vacasa South Dakota LLC; Vacasa Tennessee LLC; Vacasa Vacation Rentals of Hawaii LLC, 69-201 Waikoloa Beach Dr. Ste. #2F17, Waikoloa, HI 96738; Vacasa Vacation Rentals of Montana LLC, Terah M. Young, Licensed Property Manager; Vacasa Virginia LLC; Vacasa Wisconsin LLC; Vacasa Wyoming LLC. In Canada, this advertisement is provided by Vacasa Canada ULC, CPBC lic. number 75826, 172 Asher Rd. V1X 3H6 Kelowna, BC.
