The 10 Best Places To Buy a Vacation Home in 2021

Gabrielle Olya From GOBankingRates

If you’ve thought about buying a second home as a vacation property, now may be a good time to do so. According to a recent report by Redfin, second-home buyer demand is slowing down, which will open up more affordable inventory for those still in the market. And while buyer demand for second homes is decreasing, guest demand is still high, which is great news for those looking to make rental income off their vacation home, Vacasa reported.

According to a recent Vacasa survey, most prospective buyers interested in purchasing a second home are looking to spend under $399,999, and 46% hope to generate rental income ASAP. Fortunately, many of the top places to buy a vacation home in 2021 — as determined by Vacasa based on home sales and vacation rental performance data from the last 12 months — meet these qualifications.

Take a look at the top 10 vacation rental markets.

10. Ludlow, Vermont
    Median home price: $346,950
    Annual gross rental revenue: $42,638
    Vacation rental market cap rate: 5.2%
    Ludlow appeals to vacationers with a love of the great outdoors, with Okemo Mountain Resort and Buttermilk Falls located nearby. With a relatively high vacation rental market cap rate, this New England locale earned the No. 10 spot on Vacasa’s ranking.

9. Seaside, Oregon
   Median home price: $466,086
   Annual gross rental revenue: $45,249
   Vacation rental market cap rate: 5.2%
   This coastal town is easily navigated by walking or biking, and is home to a 100-year-old promenade. Water enthusiasts can do plenty of surfing or kayaking here as well.

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 home to the state’s largest inland lake for boating, tubing and waterskiing. During the winter months, it’s a great place for skiing, snowboarding, snowshoeing and even going for 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 an ever-popular vacation destination on the West Coast thanks to its mid-century modern homes and thriving downtown restaurant scene.

6. Blue Ridge, Georgia
   Median home price: $290,934
   Annual gross rental revenue: $38,266
   Vacation rental market cap rate: 6.1%
   Located on the border of Georgia and Tennessee, Blue Ridge offers a number of outdoor activities for vacationers, from hiking to see one of its 16 waterfalls, going for horseback rides or attending one of its numerous 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 boasts 52 square miles of fresh water, ideal for activities like stand-up paddleboarding, kayaking and wakeboarding. Plus, it’s a short drive from Knoxville and all the attractions and amenities there.

4. Dauphin Island, Alabama
   Median home price: $382,699
   Annual gross rental revenue: $43,371
   Vacation rental market cap rate: 6.8%
   Dauphin Island is a family-friendly beach destination. It’s home to the Dauphin Island Sea Lab and the Audubon Bird Sanctuary, as well as uncrowded white sandy beaches.

3. Gulf Shores, Alabama
   Median home price: $402,905
   Annual gross rental revenue: $46,107
   Vacation rental market cap rate: 7.1%
   Plenty of opportunities for water sports and a plethora of bars and restaurants make Gulf Shores an ideal vacation destination.

2. St. Augustine, Florida
   Median home price: $365,576
   Annual gross rental revenue: $46,557
   Vacation rental market cap rate: 7.4%
   Beautiful beaches and a downtown historic district attract many visitors to St. Augustine. It’s also home to the No. 1 whiskey tour in America at the St. Augustine Distillery.

1. Gatlinburg, Tennessee
   Median home price: $320,111
   Annual gross rental revenue: $47,328
   Vacation rental market cap rate: 8.6%
   With a median sale price of around $320,000 and a cap rate of 8.6%, Gatlinburg easily took the top spot on Vacasa’s ranking. The Southern destination is home to Skylift Park — North America’s longest pedestrian suspension bridge — and Anakeesta adventure park.

Posted on 10/24/2021 in deep creek lake, deep creek lake vacation, garrett county, maryland, summer vacation, vacation home sales, vacation homes, vacation rentals, vacationhomes, vacations