10 Best Places to Buy a Vacation Home in the US

Soft, sandy beaches and palm trees, picturesqueviews of the mountains, and breath-taking sunsets to cap off yet anotherrelaxing day. International buyers getting onto the U.S. property ladder tosecure their dreamy vacation home know what they like.

Foreign homebuyers inject billions into theU.S. housing market, to the tune of nearly $78 billion last year alone. And 29percent of these international buyers are scooping up U.S. property as avacation home with another savvy 14 percent suggesting their purchase is doingdouble duty as a vacation pad and as a rental property when they’re out of thecountry, according to a 2019 National Association of Realtors report.

The majority of international homebuyershail from Canada, China, India, Mexico and the U.S. but this varied mix tendsto concentrate their purchases in a dozen or so key states.

So where are the best places across theU.S. to set up shop for some sun and fun? Here’s our rundown on the top 10 beststates in the US to buy a vacation home.

Florida

Across the board, Florida is the mostpopular hotspot for international homebuyers investing in a vacation property. Itmust be the mass appeal of beautiful beaches, consistently warm weather andtourist hubs like Disney World and Universal Studies.

The NAR estimates that one in five foreignhomebuyers purchased their property in the sunshine state, and this whopping 20per cent is largely made up by Canadians aptly nicknamed “snowbirds” as theyflock to the southern sun during the cold winters. A staggering 42 percent ofCanadians buying U.S. property chose Florida as their second home – thesouthernmost state was also at the top of the list for homebuyers from India(14 percent), and the U.K. (35 percent).

A 2019 Vacasa report listed the top 25locations for buying a vacation home based on “cap rates” – or the ratio ofhome cost to the income a property can produce by being rented out. Turns out,it’s not just the warm weather and proximity to pristine beaches that makesFlorida such a draw. It’s a lucrative location with the state snagging seven ofthe 25 listings in a mix of high-price-high-rent beachfront locations tolower-price-lower rent inland areas.

Davenport, FL, ranked third overall withhome sale prices at $255,390 and a cap rate of 8.4 percent. (The top 25 placeshave a cap rate between 4.5 and 9.3 percent. Vacasa notes that the best placesto buy are not necessarily where the property is cheapest – in some locationsmedian home sales are pricy but the rental income is also high.)

Kissimmee, Key West, Panama City Beach,Marathon and Cocoa Beach, and Destin rounded out the list of popular vacationproperty destinations in Florida.

Scientists at SetSchedule crunched realmarket data to zero in on the best places to invest in a second home in theU.S. and – once again – Florida took top spot. In this instance, Orlando camefirst place overall while West Palm Beach and Panama City came second and thirdrespectively.

It’s worth pointing out that Miami isabsent from all of these lists – while it’s seeing a huge surge in its luxuryreal estate market, the city is better known for its nightlife and clubbingscene instead of as an all-around relaxing getaway.

California

Romanticized in iconic movies, TV shows andeven in song, it’s obvious why international homebuyers descend upon Californiato fulfil their vacation home dreams. They’re dreaming of the endless beaches,the stunning drive along the Pacific Coast Highway, the surfers, and don’tforget the fish tacos, wine country, and Hollywood sign!

The NAR says California is the second majordestination for international homebuyers, accounting for 12 percent of allforeign purchases in the U.S. Buyers from China are all about the West Coast –34 percent of them purchased property in California, followed by 20 percent ofU.K. buyers and 10 percent of buyers from both India and Mexico.

Fort Bragg ranked ninth on Vacasa’s listwith median home prices of about $509,500 and a cap rate of 5.9 percent. It’slocated in the northern part of California – about a 3.5-hour drive from SanFrancisco – along the Mendocino Coast, hugging the Pacific Ocean and JacksonState Forest.

While city life in Fort Bragg was the onlyCalifornia mention on Vacasa’s list, the west coast state dominatedSetSchedule’s rankings. The gorgeous Napa Valley came in fifth with PalmSprings, Westlake Village, Laguna Beach and Valencia rounding out the top 10 spots.

Texas

Dubbed the Lone Star State, famous for itsincredible food scene (think of the world-renowned BBQ!), hub for live music,and all-around great weather, it’s no surprise that Texas is the third mostpopular state for international buyers shopping for a vacation home.

Texas is the most preferred destination ofhomebuyers from Mexico, making up 28 percent of this group’s U.S. real estatepurchases, followed by 13 per cent of buyers from India, according to the NAR.The U.K, China, and Canada each had three percent of all of their propertypurchases made in this southern state.

There are the obvious choices like thewell-rounded and bustling melting pots of Houston, Austin, Dallas and SanAntonio, but international homebuyers curious about Texas shouldn’t rule outother options too.

Think of Surfside Beach, a lesser-knowntown along the Gulf of Mexico and just a drive down the coast from Galveston.It hands vacationers access to beautiful beaches, a laidback vibe and anauthentic Texan experience away from tourist traps and boardwalk shops.

In further number-crunching, Texan citieslike Waco, Arlington, Round Rock and Corpus Christi also came to the top. Thisis based on the steep Airbnb nightly rates they command and a lengthy list ofactivities for visitors from museums to amusement parks and historical sites tostunning beaches and the great outdoors.

Arizona

Known for its hot desert climate, and uniquegeography from lush forests to rugged mountain ranges and countless canyons,Arizona ranked fourth on the NAR report, raking in five percent of all foreignbuyers. It makes up 20 percent of Canadian homebuyers’ purchases, followed bysix per cent of homebuyers from Mexico.

Scottsdale ranked 17^th onVacasa’s list – it’s located just outside of Phoenix, sits on the doorstep ofPinnacle Peak, a prime hiking spot, and has a great downtown area for city lifetoo. The median home price is about $513,301 with a cap rate of five percent.

Arizona is a playground for those who lovethe outdoors, home to national parks, monuments, forest treks and, of course,the Grand Canyon.

New Jersey and New York

New Jersey accounted for four percent ofall buyers, while New York made up three percent of all international sales.They both attract buyers from around the world.

Vacation rentals with a proximity to NewYork City have their obvious appeal – whether you’re kicking up your feet oryou’re thinking of renting out your space, everyone would love to be within astone’s throw of Manhattan.

But it’s worth thinking beyond the BigApple too. New Jersey, for example, is home to many picturesque seaside townsdotted along the Jersey Shore from Atlantic City to Cape May, Seaside Heightsand Spring Lake.

Illinois

Three percent of all real estate sales madeto international homebuyers were in Illinois and from a varied group of buyerstoo – Illinois made up seven percent of all purchases made from homebuyers fromIndia, along with five percent from China.

Chicago placed seventh on SetSchedule’slist and for good reason: the researchers behind the report say that while mostcities offer a draw for vacation clientele, Chicago is also a main business hubin the middle of the country so it fits the bill for both business andpleasure. This versatility makes it a worthy vacation property investment.

North Carolina

North Carolina made up another threepercent of all international sales, according to the NAR, while it’s westerncity Whittier ranked fourth on the Vacasa list overall. The median home pricethere is a modest $178,000 with a massive 7.9 percent cap rate.

Whittier is located on the TuckaseegeeRiver, so it’s on the doorstep of the Smoky Mountains National Park. It’slikely international homebuyers closing in on North Carolina like their sportswith white water rafting, great golf courses, and hiking along waterfalls allwithin reach.

Georgia

The NAR report notes that three percent ofall international homebuyers purchased real estate in Georgia, too, while BlueRidge ranked 11^th on Vacasa’s list. But don’t forget Savannah withits quaint cobblestone streets, white sand beaches and trolley rides, to thebusy, buzzing city of Atlanta, steeped in history and culture.

Hawaii

International homebuyers eyeing Hawaii toset up their vacation spot are good thinkers – while it’s quite isolated fromthe rest of the country making it harder for mainlanders to visit, it isparadise on earth.

Kahului-Wailuku-Lahaina, on the Big Island,ranked fourth on SetSchedule’s list of top second home locations while twodestinations in Maui – Kihei and Waikoloa – appear on Vacasa’s rankings in 16^thand 23^rd respectively, with about a five percent cap rate.

Tourists are constantly flocking to Hawaiiand because it has perfect weather year-round, tourism is steady throughout theyear. So if you can’t vacation 365 days of the year in your island abode,chances are high you can rent it out making it a worthy investment.