The price of residential real estate has exploded over the past two years. No single reason explains this, but several have contributed to it.
Employment and earnings for most middle- and upper-class Americans have remained quite high during the two years of the COVID-19 pandemic. Wealth was helped by a booming stock market.
Tens of thousands of people have decided to move inland from expensive coastal towns. Home prices in New York and San Francisco are often three times the national average. Many small towns also have a better perceived quality of life. Ironically, the rush to many of these small towns has driven up residential real estate prices.
Low mortgage rates also contributed to home buying activity, although it looks like the low rate period is over.
Finally, the COVID-19 pandemic has caused many companies to close offices and ask employees to work from home. Some of these people won’t be returning to traditional offices, which means they can live wherever they want.
Some Americans, many of them wealthy, have second homes. They can use them as weekend homes and for holidays. Others use them to earn money through rentals. A little timeshare and use them for both.
The freshly released Best places to buy a beach house 2022 The research report, from vacation rental manager Vacasa, used data from home price website Redfin. Vacasa used its own data to calculate the return on investment for people who rent their homes. The report only includes places located on a body of water.
The report states:
According to a recent report by Redfin, demand from second home buyers increased by 87% at the start of 2022 compared to pre-pandemic levels, and while other areas of the real estate market may begin to normalize, sales of second homes should remain stable. .
The final list was determined largely by the cap rate, which is the rate of return on real estate investments.
The list is dominated by Gulf Shores, Alabama, which sits on the Gulf of Mexico between Mobile and Pensacola. Here are the 10 best cities to own a vacation home:
|Marlet||Capitalization rate||Median selling price|
|Gulf Shores, Alabama.||10.2%||$402,905|
|Corolla, North Carolina||9.5%||$608,953|
|Navarre Beach, Florida.||6.6%||$382,392|
|New Buffalo, Mich.||6.6%||$569,873|
|Daytona Beach, Florida.||6.5%||$247,960|
|Hatteras Island, North Carolina||6.4%||$482,447|
|Rockaway Beach, Oregon.||6.1%||$384,152|
|Port St. Joe, Florida.||6.1%||$360,721|
Click here to see in which cities the purchase of a house is the most expensive.