Published by REALTOR Magazine | August 14, 2023
Investment properties in beachside communities offer the highest ROI potential, a new analysis shows. Here are the most profitable hotspots this year.
Vacation homes have proven to be profitable for real estate investors, and owning a short-term rental near a beach may offer the best prospects. Vacasa, a vacation rental management platform, recently unveiled its annual list of the top places to buy a vacation home, based on capitalization rate or the rate of return on investment.
Lake Anna, Va., held on to the top spot on the 2023 rankings as the best place to buy a vacation home, according to Vacasa’s analysis, which looked at home sales and vacation rental performance data over the last 12 months. With a median sale price of $405,500, Lake Anna offers a cap rate of 10.32%—the highest of the vacation hotspots on the list.
Here are the markets that topped Vacasa’s list of the best places to buy a vacation home in 2023:
1. Lake Anna, Va.
Cap rate: 10.32%
Average gross rental revenue: $64,121
Median sale price: $405,500
2. Okaloosa Island, Fla.
Cap rate: 9.08%
Average gross rental revenue: $53,832
Median sale price: $360,000
3. Sandbridge, Va.
Cap rate: 6.47%
Average gross rental revenue: $88,702
Median sale price: $928,900
4. Rehoboth Beach, Del.
Cap rate: 6.46%
Average gross rental revenue: $58,992
Median sale price: $618,000
5. Navarre, Fla.
Cap rate: 6.42%
Average gross rental revenue: $47,531
Median sale price: $420,000
