Most sun-loving Americans equate summer months with tans, beaches, and coastlines. The east and west coasts are desirable vacation spots for eager travelers, some of whom are searching out premium beachfront property in markets that boast a stronger return on investment than others.
With factors such as cap rate, buying opportunity, and median home cost, the below list contains the top ten places in which to purchase a beachfront home or property:
- Ocean Shores, WA
- Cap rate: 7.6%
- Median home cost: $239,460
- Myrtle Beach, SC
- Cap rate: 7.4%
- Median home cost: $249,999
- Panama City Beach and Santa Rosa, FL
- Cap rate: 6.1%
- Median home cost: $419,900
- Gulf Shores, AL
- Cap rate: 5.8%
- Median home cost: $409,900
- Galveston Island and Port Bolivar, TX
- Cap rate: 5.6%
- Median home cost: $329,900
- Kauai, HI
- Cap rate: 5.4%
- Median home cost: $696,028
- Ocean City, MD
- Cap rate: 5.4%
- Median home cost: $285,000
- Key West, FL
- Cap rate: 5.0%
- Median home cost: $788,500
- Marathon to Long Key, FL
- Cap rate: 4.9%
- Median home cost: $619,900
- Cocoa Beach, FL
- Cap rate: 4.7%
- Median home cost: $339,000
Yes, Washington state and South Carolina made the list, however, Florida remains strong in holding four of the ten most desirable (and profitable) places to own a beach house. At the end of the day, nothing beats living in the sunshine state.
Considering a Beach House?
If you think you might be in the market for a beach home, be sure to take a hard look at the potential return on your investment, especially if you plan to rent the property when you are not using it. Check out the market’s cap rate and search for a property within a two-hour drive from your primary residence.
If you intend to rent your property, note that most travelers are seeking beachfront properties. If this isn’t of interest, take a look at condos or homes with pools.
Finally, make sure to find an experienced agent who specializes in beach property, knows vacation rental rules and regulations, and understands the market. A good agent will also be knowledgeable in investment return data and have your best interest at heart.
Related: “No Deal is Better than a Bad Deal”
Related: “Age Demographics & Market Value”