How to Identify Appreciating Vacation Towns

[William Coet]

When visiting places on vacation it's always tempting to look at real estate prices and talk to people who own there.

Often times, owners will talk about the amazing appreciation they have experienced.  I have visited places in the US where tourism/vacationing is the primary economy and the values have been climbing for decades without any other jobs!

Are there indicators that a vacation area is going to continue to appreciate?  Do certain things (proximity to certain metros, historic trends, zoning restricitons, etc.) contribute to making a highly appreciating vacation market?