Vacation homes are a commodity many Americans desire, but some view the cost as prohibitive in today’s floundering market. But if investors choose their vacation home’s location wisely and opt to rent out their vacation home while they aren’t using it, the property could prove to be a valuable investment. If nothing else, it may at least earn enough supplementary income to make the expense worthwhile.
When buying a vacation home, one of the most important factors to consider is location. Owning a vacation home is inherently different from simply renting a hotel room once a year. Vacation homebuyers are advised to travel to the area they are considering before making a purchase; owning a vacation home means the homeowners will likely spend a lot of vacation time there, so it’s important they enjoy the area. And when the vacation home is also an investment property, the location and surrounding market is even more important. Investors should look for an area that is not only has draw as a tourist destination, but also has a strong market with good appreciation and rent returns.
With this in mind, here is NuWire’s list of the top 10 locations in the U.S.—including U.S. territories—to buy vacation rental property. The cities were selected based on a combination of their appeal as both investment and tourism locations. Factors such as home prices and appreciation rates were taken into consideration alongside issues such as weather and the availability of activities and attractions.