As mortgage rates remain low and people look for pandemic-safe getaways, vacation homes are growing in demand, according to Vacasa, a vacation rental management platform.
“We’ve seen a surge in demand for vacation homes across our portfolio, and real estate transactions are up as much as 35% in some of our vacation rental markets across the county when compared to July 2019,” says Shaun Greer, vice president of sales and marketing at Vacasa. “Many buyers believe we will be impacted by COVID-19 for the next 12 to 18 months, and are seeking a place close to home where they can get away with their families, work remotely, if needed, and generate income when the house is not in use.”
Vacasa released its 2020 edition of the “Top 25 Best Places to Buy a Vacation Home” report, which ranks the best U.S. destinations to invest in a vacation rental property by average cap rate (or yearly rate of return).
The 10 markets for buying a vacation home in 2020 that topped its list are:
1. Big Sky, Mont.
- Median home sale price: $541,842
- Cap rate: 9.2%
2. Cape Hatteras, N.C.
- Median home sale price: $379,248
- Cap rate: 8.6%
3. Poconos, Pa.
- Median home sale price: $200,190
- Cap rate: 8.2%
4. Gatlinburg, Tenn.
- Median home sale price: $269,523
- Cap rate: 7.8%
5. Dauphin Island, Ala.
- Median home sale price: $289,623
- Cap rate: 7.8%
6. Corolla, N.C.
- Median home sale price: $560,599
- Cap rate: 6.9%
7. Conway, N.H.
- Median home sale price: $238,930
- Cap rate: 6.5%
8. Palm Springs, Calif.
- Median home sale price: $459,857
- Cap rate: 6.4%
9. Ellijay, Ga.
- Median home sale price: $226,685
- Cap rate: 6.4%
10. Blue Ridge, Ga.
- Median home sale price: $291,595
- Cap rate: 6.3%
Source: Vacasa
