Association of Realtor and VACASA Top 10 Places to buy a vacation rental in 2023

[AJ Wong]

Recent list I'd thought I'd share from the National Association of Realtors by way of Vacasa. Their analysis showed beachside communities offered the highest ROI. There are a definitely a few locations I've considered and want more info on! North Carolina Coast anyone?

2023 TOP TEN STR LOCATIONS 

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

6. Gulf Shores, Ala.
Cap rate: 6.09%
Average gross rental revenue: $48,169
Median sale price: $475,000

7. Palm Coast, Fla.
Cap rate: 5.69%
Average gross rental revenue: $38,212
Median sale price: $360,000

8. Corolla, N.C.
Cap rate: 5.47%
Average gross rental revenue: $80,423
Median sale price: $927,500

9. Nags Head, N.C.
Cap rate: 5.45%
Average gross rental revenue: $53,939
Median sale price: $615,500

10. Rockaway Beach, Ore.
Cap rate: 5.23%
Average gross rental revenue: $37,030
Median sale price: $340,000

These seem like low CAP rates, presumedly because the list maker is factoring their 25-35% management fee and who knows the average down payment or interest rate..

From Brookings Oregon to Rockaway Beach and beyond there are on market listings with stronger projected returns. 

Either way, clear trend towards recreation and water. Haven't found a list for luxury vacation rentals yet..

Do you own or invest in any of these areas? 

[Jessica Parker]

I live and I'm also a realtor in Navarre, FL.  The short term market here is saturated and long term rentals are sitting on the market...there is just such a huge number of rentals on the market for what we are used to.  I have a short term rental just built last year.  We did pretty well for the season, but the winter months are very quiet with few bookings.  I don't know how the other short term rentals did..but I'm guessing probably similar. 

Currently there are 42 single family homes that are listed as rentals on the MLS here in Navarre. Nearly half of them have been sitting on the market for more than 60 days. 90% of them are priced from $1800-3,000 with just 3 priced higher than $2900/month. I'm not sure how old their figures are but these are all from today.