US: Portland-based rental management platform Vacasa has released its report for the 25 Best Vacation Spots for 2021.
The company’s fourth annual report ranks the top US destinations for buying a vacation rental property based on the average cap rate, or annual rate of return, and reveals a number of new markets with investment potential.
During the pandemic, mortgage rate locks for second homes have significantly outpaced those for primary homes, but Redfin’s analysis shows that that gap is starting to shrink. For the first time since June 2020, the temperature of the second domestic market has cooled to nearly pre-pandemic levels.
“Market conditions are always changing, but the rapid and permanent adoption of short-term rentals during the pandemic has clearly had an impact on second home sales,” said Sean Greer, Vice President of Sales and Marketing at Vacasa. “The surge in guest demand and preference is changing for new, remote destinations where potential buyers can find The best investment property.
“According to the 2021 Holiday Rental Buyers Report, more people are looking to take advantage of this opportunity as well, with 70 percent of existing buyers looking to invest in their first rental property — a significant jump from 46 percent who were first-time buyers in 2019. .
Although many of the destinations from last year’s report reappeared this year—including the top-ranked Gatlinburg, Tennessee, which jumped from fourth place in 2020—newcomers captured more than half of the locations in 2021. Deep Creek Lake , Maryland, Clee Ellum, Washington, Litchfield Beach, South Carolina and Twintin Palms, California, are among the new markets, indicating that investment-friendly properties can be found in waterfront, mountain, and desert areas.
To compile its rankings, Vacasa analyzed home sales and rental performance data over the past 12 months for vacation destinations across the country where Vacasa and its affiliates operate vacation rentals.
Last month, Vacasa, which operates more than 30,000 homes in more than 400 destinations in North America, Belize and Costa Rica, announced that it was set to go public through a merger with a special purpose acquisition firm. [SPAC] TPG Pace Solutions before the end of the year, with a valuation of nearly $4.5 billion.
It follows the company’s $162 million acquisition of Wyndham Vacation Rentals in October 2019 and a strong 6,000-person luxury home portfolio from TurnKey Vacation Rentals in April, as well as this month’s purchases of Meyer Vacation Rentals in Alabama and SeaBreeze Vacation Rentals in California.
Follow this link to see all the sites that made the Vacasa report the 25 best places to buy a vacation home.