Top Places to Buy a Vacation Home MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 The housing market has underwent significant changes over the past few years, but there are still good deals in great locations to be had. Vacasa has just released its “2025 Top 25 Best Places to Buy a Vacation Home” report, a helpful resource for vacation rental home buyers new and old, as well as those seeking investment properties.

Vacation Rental Real Estate Market Trends

• Inventory: The good news is that after the past few years of historically low listings, market inventory is slowly growing. This will favor buyers, allowing more options and increased bargaining power.
• Pricing and affordability: Average home prices are climbing, but are starting to slow in some markets. This means homes are on the market for a longer period of time, which should start shifting some metros to a buyer’s market.
• Reduced mortgage rates: Interest rate cuts in 2024 were beneficial for many, but rates are not expected to stabilize in 2025.
• Cap rates: As prices climb and vacation rental revenue dips, cap rates (the annual ROI or rate of return-on-investment) are feeling the pressure. The higher costs of ownership, from insurance to HOA and utilities, also impacts cap rates.

So what does this mean for vacation rental buyers? Focus on homes in desirable destinations and with key amenities (think hot tubs, pools, and water views). To achieve the highest cap rate possible, look for those with lower ownership costs.

Where to Buy in 2025

According to Vacasa’s report, the top 10 places to buy a vacation home in 2025 include:

1. North Myrtle Beach, South Carolina: Located at the northern end of the famed Grand Strand Myrtle Beach, these four beach towns on the Atlantic Coast Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill–North Myrtle Beach are full of piers, golf courses, and sandy bays.

• Look for: Atlantic-facing condos that provide seaside pools, hot tubs, private beach access, and private balconies overlooking the beach.
• Guest profile: Seventy eight percent of overnight visitors come for beach activities, with dining a close second (seventy three percent).
• Median home price: Three hundred and sixty thousand seven hundred and forty seven dollars

2. Dauphin Island, Alabama: A short drive directly south of Mobile leads you to the beautiful beaches, historic attractions, and quaint seaside charm of Dauphin Island.

• Look for: 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 (twenty four percent) and groups of seven or more (twenty seven percent).
• Median home price: Six hundred and forty five thousand three hundred and thirty dollars

3. Okaloosa Island, Florida: This palm-studded paradise on the Gulf of Mexico spans three miles of white sugar sand beaches.

• Look for: Most vacation rental options offer large swimming pools and quick beach access in stately condo complexes.
• Guest profile: Every year, close to five million visitors descend on this area of the Emerald Coast. In the past year, sixty percent of bookings were for more than four nights.
• Median home price: Six hundred fifty four thousand four hundred and ninety four dollars

4. Hatteras Island, North Carolina: Located off the coast of North Carolina, Hatteras offers fifty miles of scenic coastline, seven small villages, and some of the best views on the East Coast.

• Look for: Spacious vacation rentals, especially those with private pools, hot tubs, and easy beach access.
• Guest profile: Almost sixty percent of bookings are for more than seven nights.
• Median home price: Eight hundred and five thousand five hundred and eight five dollars

5. Girdwood, Alaska: Located 45 minutes south of Anchorage and surrounded by breathtaking glacial peaks, Girdwood offers the largest ski area in the state.

• Look for: Slopeside condos and homes that offer quick access to the lifts and large windows to frame the spectacular views of the ice-capped mountains that encircle the town.
• Guest profile: Visitors prefer shorter trips or long weekends, with sixty one percent of attendees booking for two to three nights.
• Median home price: Four hundred eight five thousand four hundred and twenty nine dollars

6. Navarre, Florida: Nestled between Destin and Pensacola, with miles of unspoiled white shores and translucent emerald waters, the most sought-after properties here are right on the Gulf. Note that research shows travelers search for “oceanfront,” not “Gulf front.”

• Median home price: Six hundred eighteen thousand eight hundred and sixty three dollars

7. Gatlinburg, Tennessee: This wildly popular gateway to the Great Smoky Mountains National Park, is just an hour’s drive from Knoxville. Gatlinburg is a family favorite, offering large rustic-style cabins with cozy fireplaces for guests who prefer shorter trips or long weekends (sixty three percent book of those visiting Gatlinburg, Tennessee for two to three nights).

• Median home price: Six hundred thirty three thousand one hundred and sixty two dollars

8. North Topsail Beach, North Carolina: Just thirty miles from Wilmington, North Topsail Beach offers expansive beaches and marvelous sunsets over the Atlantic Ocean. Beach houses large enough to accommodate bigger groups for longer stays are key: about thirty three percent of bookings came from groups of seven or more people, and forty seven percent of bookings were for one week or longer.

• Median home price: Eight hundred thirty one thousand three hundred and ninety seven dollars

9. Corolla, North Carolina: Corolla, in the northernmost region of the Outer Banks, is known for its relaxed luxury. Vacation homes are spacious, even palatial, and guests expect luxuries such as an oceanfront location, beach access, and pools. Average group size is 4.9 people, and about 88% of stays are for five or more nights.

• Median home price: One million two hundred nineteen thousand three hundred and sixty one dollars

10. Truro, Massachusetts: This bucolic village at the northern tip of Cape Cod draws in travelers looking for its quiet natural beauty. Private homes with Cape Cod Bay views are most desirable, and isolated Truro is a big draw for couples: about sixty five percent of bookings were for two guests.

• Median home price: Six hundred thirty six thousand four hundred dollars

Click here to read more details about the rest of Vacasa’s “2025 Top 25 Best Places to Buy a Vacation Home” report.

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