With the help of Cheryl Casone, Wendy and Scooter find their dream home beach after a long search on ‘American Dream Home’.
Buyer demand for second homes spiked at the start of 2022 from pre-pandemic levels, according to a recent report from Redfin.
RENTAL AND HOME PRICES EXPECTED TO RISE EVEN MORE THIS YEAR, FORCING SOME TO PACK UP AND MOVE
The interest in second homes jumped in mid-2020, according to Redfin, in part due to the increase in remote work and low mortgage rates.
One of the more popular and profitable markets in the U.S. for second home purchases is beach properties, according to vacation rental management platform Vacasa.
To find the best destinations in the United States to purchase a beach house, Vacasa conducted a report ranking the most profitable beach markets. It examined the top waterfront vacation rental destinations based on average cap rate or yearly rate of return, as well as destinations where vacation rental buyers can earn more.
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“While beach destinations will nearly always draw in a steady stream of guests, buyers can also earn more on homes with the amenities that guests seek most—beachfront or beach adjacent, a private pool or hot tub and being pet-friendly,” Daned Kirkham, Vacasa’s senior director of real estate, said.
Here are the 10 most profitable beach markets to buy a beach home in 2022:
1. Gulf Shores, Alabama
The beach community of Gulf Shores, Alabama. ((Photo by Carol M. Highsmith/Buyenlarge/Getty Images) / Getty Images)
This beach town has a median home sale price of $402,905, a cap rate of 10.2{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}, and an average annual gross rental revenue of $56,198.
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2. Corolla, North Carolina
This home is on the market for $1.2 million in Corolla. ((Keller Williams – Outer Banks))
A small village on the Outer Banks, Corolla has a cap rate of 9.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} with a median home sale price of $608,953 and an average annual gross rental revenue of $77,971.
3. Navarre Beach, Florida
Beach resort on Santa Rosa Sound Florida USA. (Education Images/Universal Images Group via Getty Images / Getty Images)
This quiet beach town’s median home sale price sits at $382,392 with a cap rate of 6.6{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}. The average annual gross rental revenue is $43,202.
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4. New Buffalo, Michigan
Lake Shore Drive, New Buffalo, Michigan (Zillow)
Up north in the Great Lakes state is this small beach town that has a cap rate of 6.6{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} and a median home sale price of $569,873. Its average annual gross rental revenue is $58,544.
5. Daytona Beach, Florida
This Daytona Beach home is on the market for $895,000. (Adams Cameron & Co. Realtors)
This vibrant Atlantic coast city has a 6.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} cap rate and an average annual gross rental revenue of $31,913. Its median home sale price is $247,960.
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6. Galveston, Texas
A lighthouse and home at the ferry entrance to south side of Bolivar Island from the port of Galveston, Texas. (iStock)
An island city on the Gulf Coast, Galveston, has a median home price of $340,559 and an average annual gross rental revenue of $43,981, with a 6.4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} cap rate.
7. Hatteras Island, North Carolina
North Carolina, Hatteras Island, waterfront mansions and houses. ((Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images) / Getty Images)
This island has a 6.4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} cap rate, a median home sale price of $482,447 and an average annual gross rental revenue of $45,968.
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8. Rockaway Beach, Oregon
Two 100-foot-high rocks offshore in the Pacific Ocean, at Rockaway Beach, Oregon. (iStock / iStock)
This quiet beach spot has a cap rate of 6.1{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} and a median home sale price of $384,152. Its average annual gross rental revenue is $48,030.
9. Port St. Joe, Florida
Port St. Joe is a small Town in the Florida Panhandle (iStock / iStock)
This town in the Sunshine State has a cap rate of 6.1{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}, a median home sale price of $360,721 and an average annual gross rental revenue of $39,688.
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10. Lahaina, Hawaii
Aerial View of Lahaina on the Coast of Maui. (Douglas Peebles/Corbis via Getty Images / Getty Images)
This historic Hawaiian town has a cap rate of 5.8{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} and the highest median home sale price on the list at $725,000. The average annual gross rental revenue is $58,496.