The luxury vacation home market in the United States has seen significant shifts in rankings for 2024, with Cape May County, New Jersey, emerging as the top destination. The analysis came from Pacaso, a second-home co-ownership marketplace. The most sought-after locations for second homes in 2024 were Cape May County, New Jersey, Gulf County, Florida, Walton County, Florida, Barnstable County, Massachusetts, and Collier County, Florida.
Home prices in the U.S. increased by nearly 3.5% year over year in October 2024.
Looking ahead, experts noted a minor decline in home prices from October to November 2024.
Cape May County surged from outside the top 20 to the number one spot for second homes in 2024, boasting a second home-to-primary residence ratio exceeding 150%.
Gulf County has also gained traction as a luxury home destination. The area offers prime oceanfront properties that are increasingly sought after, contrasting with crowded markets like Miami.
Despite some areas facing price declines, national home price growth is anticipated to come at a muted pace heading into 2025. The median sales price for single-family homes currently stands at $385,000.
Walton County is also becoming a preferred location for luxury homes. The exclusivity of its oceanfront properties attracts buyers seeking a quieter lifestyle.
Pacaso CEO Austin Allison said, “In Florida, Gulf and Walton counties – home to the Panhandle towns along 30A and Naples – are emerging as top luxury home destinations, offering prime oceanfront properties that are scarce in hotspots like Miami and Palm Beach.”
Barnstable County, home to Cape Cod, remains a favorite for vacation home purchases. Allison said, “This legacy destination has been a popular vacation home market for decades.”
Allison noted that the area is “renowned for its charming beachside communities and historic ties to the Kennedy family, who vacationed there and own the famous Kennedy Compound.”
Collier County, which includes Naples and Marco Island, has seen a surge in demand for second homes, especially during the COVID-19 pandemic. The average price for a second home in this area exceeds $896,000.
While some experts praised the growth of these markets, others warned that rising property prices may make these areas less accessible to average buyers. Critics argued that a focus on luxury homes could overshadow the need for affordable housing.