Mid-Atlantic and southeastern states dominated the top 10 rankings in the 2023 edition of the Best Places to Buy a Beach House report published by Vacasa (NASDAQ:VCSA), the Portland-based vacation rental management platform.
The report highlights the waterfront destinations on oceans, gulfs and lakes with the best cap rate (or annual rate of return on investment). Lake Anna, Virginia, came in first in this year’s report, thanks to a 12.1% cap rate in a market where the median home price is $385,000.
“This year’s number one destination is the second largest lake in Virginia, stretching 17 miles long with sparkling water and sandy beaches,” said the Vacasa report. “Lake Anna is split into two sections: a public side with waterfront restaurants, marinas, and boat launches, and a private side where no commercial operations are allowed. Summer is an obvious choice for vacationing on the lake, but hiking through the colorful trees along the lakeshore in the fall is a must-see experience.”
Hatteras Island, North Carolina (with a 9.5% cap rate), Navarre Beach, Florida (8.1%), Palm Coast, Florida (7.1%) and Surf City, North Carolina (5.8%) rounded out the list’s top five. Rockaway Beach, Oregon, was the sole West Coast location in the top 10, placing ninth with a cap rate of 4.7%.
Daned Kirkham, senior director of real estate for Vacasa, noted that changes in real estate market over the past year will have a significant impact for the 2024 report.
“The bidding wars keeping some second home buyers out of the market a year ago may be less of a headwind today, which can open up the right opportunity to purchase if buyers are comfortable with some level of increased costs to purchase,” Kirkham said.
Photo: A vacation home in North Topsail Beach, North Carolina; courtesy of Vacasa.