Vacation rentals are becoming one of today’s economy boosters. In fact, Grand View Research reported that the global vacation rental market size was valued at $87.09 billion in 2019. Furthermore, it is expected to have a 3.4% compound annual growth rate (CAGR) increase from 2020 to 2027.
The same study reveals that more travelers are inclined to book a vacation rental property over hotels. This is because of the convenience and added privacy it offers. On top of that, this temporary home for tourists is more accommodating to kids and pets. Not to mention the affordability of the rates.
Location is an important factor to consider when venturing into the vacation rental industry. If you’re looking for the best place to buy a vacation home to rent out, beach towns are perfect! Not only do properties in this area generate a high amount of revenue, but they also can serve as a second home for owners.
It’s not difficult to look online for the best place to own a vacation rental in the U.S.A. But before investing, you need to study that particular beach town and see if it will deliver a good return on your investment. Here are some of our suggested cities to check out.
Fort Lauderdale, Florida
In the southeastern part of Florida lies Fort Lauderdale. After being used as the setting for the movie “Spring Break,” the coastal city experienced high demand from spring breakers. While it’s not the most booked destination for those on a spring break, still, the spring break season contributes to the huge number of bookings made in the area. Aside from the beaches and canals, Fort Lauderdale is also known for its arts, culture, and events.
According to Sun-Sentinel, in 2019 the number of domestic passengers arriving and departing at the Fort Lauderdale-Hollywood International Airport increased by 2.2%, while the number of international travelers went up by 2%. With the number of activities to do in this place, there’s no doubt that purchasing a vacation rental for sale here can give you a reliable source of income.
Paia, Hawaii
If you’re looking for a hip surf town to spend your vacation in, the best place to buy a vacation home is in Paia. This historic town is situated on the north coast of Maui. What used to be a site of a bustling sugar cane operation is now a popular tourist destination in Hawaii. Vacation rentals are worth investing in within this quaint town because of the influx of visitors who want to try surfing in the best place to buy a vacation home to rent out.
Tourists mostly go here to visit Hookipa Beach—a world-renowned windsurfing destination. You can learn how to surf or simply take in the stunning natural coastal backdrop. Professional windsurfing competitions also take place here. Additionally, the town has colorful, rustic storefronts for you to explore. Don’t miss dropping by the local art galleries, as well as the one-of-a-kind boutiques and restaurants.
Asbury Park, New Jersey
Looking for the best beach in New Jersey? You can find it in Asbury Park. In fact, Asbury Park was ranked second in Money Magazine’s “Top 14 Best Beaches in the World” list in 2018. This mile-long stretch of the Jersey Shore also welcomes enthusiastic surfers. NJ.com estimated that there were at least 20,000 beachgoers here in 2019. Indeed, this is one of the best beach towns to consider for your vacation rental investment.
After a tiring day at the beach, visitors can unwind at the various live music venues in the area. The music scene in this town is very much alive as the city is known for launching the careers of Springsteen and Jon Bon Jovi. The wide selection of food is also impressive, from Japanese and Korean-fusion dishes to Neopolitan-style pizzas and Mediterranean specialties.
Virginia Beach, Virginia
Virginia Beach is a vibrant coastal city with three beaches for tourists to explore. For families, it’s best to visit Chesapeake Bay Beach and enjoy its shallow waters and calm shore. For adventure seekers, Resort Beach is the place to go. Here, you can enjoy a bunch of activities, including kayaking, rollerblading, or biking at the boardwalk. Lastly is the quiet Sandbridge Beach that is perfect for wildlife and nature lovers.
Because Virginia Beach is a year-round destination, investing in a vacation rental here is a good idea. One of the city’s biggest records was in 2017, when they welcomed 19 million tourists. And even though the pandemic paused the city’s tourism, a new report shows that visitors are slowly coming back.
Bar Harbor, Maine
Bar Harbor can be seen on Mount Desert Island down the east region of Maine. This city is ideal for vacation rentals because it serves as an entry point to the Acadia National Park. The park is such a crowd favorite that it recorded a total of 3.43 million visits for the whole year of 2019. This thriving tourism ensures that your vacation rental will earn a profit.
The 290-yard-long Sand Beach at this park is recognized as a popular point of interest among tourists. Those who want to try out mountain climbing can take on the challenge of traversing Cadillac Mountain. And while you’re in Bar Harbor, don’t miss having a taste of the city’s famous Maine Lobster.
Douglas, Michigan
Whether you’re looking for an adventure or pure relaxation, Douglas can provide it all for you. The best vacation homes are located just a few minutes away from Oval Beach. This beach was named by Condé Nast’s Traveler Magazine as one of the top 25 beaches in the world. It is this town’s pride and one of the most visited attractions all year round. That is why putting up a vacation rental business here is worth it.
Aside from frolicking at the beach, vacationers can explore the sandy hiking trails at the Saugatuck Dunes State Park. For peaceful gatherings with your family or romantic dates, the pavilion at West Side County Park is a great choice. Don’t forget to sample Michigan’s harvest at the many restaurants in the area.
Ocean City, Maryland
This resort town in Maryland is not your typical beach getaway. Here, you get to enjoy sand-side thrill rides, and, when you get famished from the day’s activities, you can devour the popcorn from Fisher’s. People love it here because the beach is beautifully maintained. In fact, there are about 8 million guests welcomed in Ocean City every year.
This big number just shows that it’s good to invest in a vacation rental in this city. This is a paradise for all ages. Travelers will never run out of activities to enjoy, from surfing and fishing to canoeing and kayaking. Plus, there are free family activities like beach games, dance parties, movie watching on the beach, and more.
Santa Cruz, California
A quintessential California beach town can be found in Santa Cruz. Vacationers are guaranteed to fall in love not just with the long stretch of warm beaches but also with Santa Cruz County’s food and wine scene. Although the tourism industry has been steady for the past years, it was in 2018 when the county reached the $1 billion mark in tourism revenue for the first time.
This record is proof that this is the best place to buy a vacation home due to the potential earnings you can get. This coastal city will invite your future guests to try out surfing and other water activities. Moreover, they get to have fun tasting locally made wine, aged to perfection.
Cannon Beach, Oregon
One of Oregon’s picturesque holiday spots is Cannon Beach. It’s hard to miss the intertidal 235-feet-tall structure, Haystack Rock, which is a sight to behold for vacationers. This paradise is also one of the favorite places for spring breakers. Hosting over 750,000 visitors annually, it’s fairly easy to market your vacation rental property here should you decide to invest.
There are a lot of events to witness in this city. Every year, Cannon Beach hosts its biggest event called “Sandcastle Day,” which is basically a sandcastle competition. Other yearly events to attend while in this town is the Puffin Kite Festival every April and the Stormy Weather Arts Festival every November.
Investing in a beach house vacation rental: Is it worth it?
Yes, buying a beach house vacation rental is worth it. Why? Because it brings a lucrative return on investment and a steady stream of income if managed properly. Most of the time, the rental income that investors collect during peak season is enough to cover their property’s expenses for the whole year.
Another one of the major perks in owning a beach house vacation rental is that you get to enjoy the property whenever it’s not rented out. No need to look for other accommodations when you need a break. Your vacation estate can serve as a personal vacation getaway for you and your acquaintances.
Conclusion
Beach towns are a popular choice of location for vacation rental investors. This isn’t surprising because many holidaymakers look forward to swimming, surfing, and other water activities while on break. While there are many beach towns in the U.S.A., it’s best to carefully pick out a location before investing. This will ensure that you get your money’s worth.
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