2024: Top 25 Best Places to Buy a Vacation Home

Drone shot of a large house near the water on Hatteras Island.
The exterior of a cabin rental in Gatlinburg, TN

The vacation rental market has changed significantly over the past few years, and while we’ve all seen the headlines surrounding the increase in vacation rental inventory, it doesn’t mean that purchasing a vacation home isn’t a good investment—if you know where to buy.

Our 2024 Top 25 Best Places to Buy a Vacation Home report can serve as a helpful resource whether buyers are seeking their first vacation rental or the third in their portfolio.

2024 Vacation Rental Real Estate Market Trends

2024 vacation rental real estate market trends:

Inventory
Inventory on the market is slowly increasing following the past few years of historically low listings. The increase in inventory will favor buyers, giving them more options and increased bargaining power.
Pricing and Affordability
The sales-to-list price percentage remains high, keeping us in a sellers’ market, however, we could start to see a slow transition to a buyers’ market.
Interest Rates
As expected, the Federal Reserve cut interest rates by half a point in late September. This has the potential to bring more buyers to the market who may have been waiting on the sidelines for rates to drop. If you are serious about buying, act fast on the right property before others flood the market.
Cap Rates (or, the annual rate of return on investment)
There is continued downward pressure on cap rates as home prices climb and vacation rental revenue dips from the peaks of 2021 and 2022. Higher ownership costs (insurance, HOA, utilities, etc.) have also had an impact on cap rates.

Learn more about cap rate >

Inventory
Inventory is slowly increasing following the past few years of historically low listings. The increase in inventory will favor buyers, giving them more options and increased bargaining power.
Pricing and Affordability
The sales-to-list price percentage remains high, keeping us in a sellers' market, however we could start to see a slow transition to a buyers' market.
Interest Rates
Interest rate cuts anticipated to start this fall should bring more buyers to the market who may have been on the sidelines waiting for rates to drop.
Cap Rates (or, the annual rate of return on investment)
There is continued downward pressure on cap rates as home prices climb and vacation rental revenue dips from the peaks of 2021 and 2022. Higher ownership costs (insurance, HOA, utilities, etc.) have also had an impact on cap rates.

With all this in mind, savvy vacation rental buyers should focus on homes in desirable destinations, with key amenities like a hot tub, pool, or water view—and those with lower ownership costs to achieve the highest cap rate possible.

As always, it is advised to work with an experienced real estate professional knowledgeable about the local vacation rental market and regulations. A professional property manager like Vacasa can also help prior to purchase with market insights and home revenue projections.

1. North Myrtle Beach - Best places to buy

1. North Myrtle Beach, SC

Made up of four beach towns on the Atlantic Coast—Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill–North Myrtle Beach is a laid-back haven of piers, golf courses, and sandy bays.

Location

At the northern end of the famed Grand Strand Myrtle Beach.

Top homes and amenities

Atlantic-facing condos are extremely popular for their seamless experience, seaside pools, hot tubs, private beach access, and private balconies overlooking the beach.

Guest profile

About three-fourths of overnight visitors to Myrtle Beach come primarily for beach activities (78%), with dining a close second (73%).1

North Myrtle Beach by the numbers

Gross cap rate

8.10%

Average revenue

$27,603

Median home price

$360,747

2. Dauphin Island, AL - Best places to buy

2. Dauphin Island, AL

With beautiful beaches, historic attractions, and quaint seaside charm, Dauphin Island has all of the amenities of a popular beach destination with a small-town feel.

Location

Dauphin Island is located on a barrier island of the same name, 45 minutes directly south of Mobile, Alabama.

Top homes and amenities

Guests tend to book large coastal homes with open floor plans, multiple wrap-around decks, and multiple bedrooms to fit large families.

Guest profile

Dauphin Island draws both couples (24%) and big groups of 7 or more people (27%).*

Dauphin Island, AL by the numbers

Gross cap rate

8.00%

Average revenue

$53,293

Median home price

$645,330

3. Okaloosa Island, FL - Best Places to Buy

3. Okaloosa Island, FL

A palm-studded paradise on the Gulf of Mexico, spanning three miles of white sugar sand beaches.

Location

Okaloosa Island sits on the greater 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.

Guest profile

Every year, close to 5 million visitors2 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.

Okaloosa Island, FL by the numbers

Gross cap rate

7.70%

Average revenue

$50,292

Median home price

$654,494

4. Hatteras Island, NC - Best places to buy 2024

4. Hatteras Island, NC

With 50 miles of scenic coastline and seven small villages, Hatteras is a tranquil, yet beautiful escape with some of the best views on the East Coast.

Location

Hatteras Island is one of many barrier islands in Outer Banks, North Carolina, located off the state’s east coast.

Top homes and amenities

Hotels are sparse on Hatteras Island, so larger groups tend to book spacious vacation rentals, especially those offering private pools, hot tubs, and quick access to the beach.

Guest profile

Guests tend to linger longer on Hatteras Island. Almost 60% of bookings are for 7+ nights.*

Hatteras Island, NC by the numbers

Gross cap rate

7.30%

Average revenue

$58,862

Median home price

$805,585

5. Girdwood, AK - Best Place to Buy 2024

5. Girdwood, AK

Surrounded by majestic glacial peaks, Girdwood enjoys its status as Alaska’s only true resort town (albeit laidback), offering the largest ski area in the state.

Location

Girdwood is located 45 minutes south of Anchorage.

Top homes and amenities

Girdwood’s most attractive hallmark: spectacular ice-capped mountains that encircle the town and nearby posh Alyeska Resort. Guests usually book slopeside condos and homes that offer quick access to the lifts and large windows to frame the alpine views.

Guest profile

Many Girdwood visitors opt for shorter trips or long weekends, with 61% of bookings for 2-3 nights.*

Girdwood, AK by the numbers

Gross cap rate

7.20%

Average revenue

$34,797

Median home price

$485,429

6. Navarre, FL - Best Places to Buy 2024

6. Navarre, FL

A serene Emerald Coast hideaway with miles of unspoiled white shores and translucent emerald waters.

Location
Nestled between the popular Emerald Coast towns of 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 ‘Gulf-front’). Something else that guests want: A pool to go along with those Gulf views.

Guest profile
Navarre visitors tend to choose condos over houses or townhomes and mostly travel in small groups of 2-4 people.

Navarre, FL by the numbers

Gross cap rate

7.10%

Average revenue

$43,439

Median home price

$618,863

7. Gatlinburg, TN - Best Places to buy 2024

7. Gatlinburg, TN

Gatlinburg shines as the wildly popular gateway to the Great Smoky Mountains National Park, packed with rustic mountainside activities, Appalachian charm, and family-friendly attractions.

Location

In eastern Tennessee, an hour's drive from Knoxville.

Top homes and amenities

Gatlinburg is a favorite for families, who tend to look for large rustic-style cabins with a cozy fireplace, hot tub, and relaxing porch to watch that famous “smoke” roll in.

Guest profile

Many Gatlinburg visitors opt for shorter trips or long weekends, with 63% of bookings for 2-3 nights.*

Gatlinburg, TN by the numbers

Gross cap rate

6.90%

Average revenue

$42,708

Median home price

$633,162

8. North Topsail Beach, NC - best places to buy 2024

8. North Topsail Beach, NC

North Topsail Beach lures guests with its quiet expansive beaches, peaceful maritime forests, and marvelous sunsets over the Atlantic Ocean.

Location

This town is located in the northernmost 11 miles of Topsail Island, about 30 miles from Wilmington.

Top homes and amenities

The tranquil and uncrowded shorefront is dotted with beach houses large enough to accommodate large groups, with beach access and Atlantic views topping the wish-list of amenities.

Guest profile

Longer stays, bigger groups. About 33% of bookings came from groups of 7 or more guests. While 47% of bookings were for weeklong stays or longer.*

North Topsail Beach, NC by the numbers

Gross cap rate

6.70%

Average revenue

$54,864

Median home price

$831,397

9. Corolla, NC - Best Places to Buy 2024

9. Corolla, NC

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.

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 nights.3

Corolla, NC by the numbers

Gross cap rate

6.60%

Average revenue

$80,785

Median home price

$1,219,361

10. Truro, MA - Best Places to Buy 2024

10. Truro, MA

This bucolic village is nostalgic of ‘old Cape Cod’, with quiet wild natural beauty and vacation homes tucked amongst the trees.

Location

Truro is known as the “Outer Cape,” at the northern tip of Cape Cod.

Top homes and amenities

Travelers come looking for a tranquil escape on the Cape Cod National Seashore. Homes offering peaceful privacy are most desirable, along with Cape Cod Bay views and quick access to the dune beaches.

Guest profile
Truro is a big draw for couples, likely due to its romantic and isolated setting. About 65% of bookings were for 2 guests.*

Truro, MA by the numbers

Gross cap rate

6.60%

Average revenue

$41,252

Median home price

$636,400

More great places to buy a vacation home

11. Gulf Shores, AL - Best Places to Buy 2024
11. Gulf Shores, AL

Gross cap rate: 6.30%
Median home price: $740,146
Explore Gulf Shores >


12. Anna Maria, FL - Best Places to Buy 2024
12. Anna Maria, FL

Gross cap rate: 6.20%
Median home price: $1,221,587
Explore Anna Maria >


13. Florence, Or - Best Places to Buy 2024
13. Florence, OR

Gross cap rate: 6.10%
Median home price: $575,459
Explore Florence >


14. Bradenton, FL - Best Places to Buy 2024
14. Bradenton, FL

Gross cap rate: 6.10%
Median home price: $579,169
Explore Bradenton >


15. Long Beach, WA - Best Places to Buy 2024
15. Long Beach, WA

Gross cap rate: 6.00%
Median home price: $514,987
Explore Long Beach >


16. Nags Head, NC - Best Places to Buy 2024
16. Nags Head, NC

Gross cap rate: 6.00%
Median home price: $691,561
Explore Nags Head >


17. Indian Rocks Beach, FL - Best Places to buy 2024
17. Indian Rocks Beach, FL

Gross cap rate: 6.00%
Median home price: $915,555
Explore Indian Rocks Beach >


18. Tybee Island, GA  - Best Places to Buy 2024
18. Tybee Island, GA

Gross cap rate: 5.80%
Median home price: $635,880
Explore Tybee Island >


19. Surf City, NCE - Best Places to Buy 2024
19. Surf City, NC

Gross cap rate: 5.80%
Median home price: $972,008
Explore Surf City >


20. Branson, MO - Best Places to Buy 2024
20. Branson, MO

Gross cap rate: 5.80%
Median home price: $226,991
Explore Branson >


21. Phoenix, AZ - Best Places to buy 2024
21. Phoenix, AZ

Gross cap rate: 5.40%
Median home price: $596,696
Explore Phoenix >


22. Bass Lake, CA - Best Places to Buy 2024
22. Bass Lake, CA

Gross cap rate: 5.30%
Median home price: $909,983
Explore Bass Lake >


23. Nashville, TN - Best Places to Buy 2024
23. Nashville, TN

Gross cap rate: 5.30%
Median home price: $664,963
Explore Nashville >


24. Holden Beach, NC - Best Places to Buy 2024
24. Holden Beach, NC

Gross cap rate: 5.10%
Median home price: $760,603
Explore Holden Beach >



25. Isle of Palms, SC- Best Places to buy 2024
25. Isle of Palms, SC

Gross cap rate: 5.10%
Median home price: $1,454,725
Explore Isle of Palms >


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Sources

  1. Myrtle Beach Area Convention Visitors Bureau Industry Research (Myrtle Beach, SC)
  2. Visit South Walton Economic Impact and Visitor Tracking Report (Okaloosa Island, FL)
  3. Visit Currituck County Strategic Plan (Corolla, NC)

*Vacasa guest data September 2023 - August 2024

Our methodology

To determine its ranking of top vacation rental markets, Vacasa appended Zillow home value estimates for each property in its portfolio (via a third-party provider), with actual 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 Vacasa performance data for markets where Vacasa manages more than 10 units.

A gross cap rate was calculated for each market by dividing each home's estimated value by actual trailing twelve months (TTM) revenue.

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.

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.