As the market for primary homes continues to grapple with low inventory and high mortgage rates, the vacation home market has given rise to new trends. These include metro-adjacent homes and new front-running vacation destinations. These markets offer significant price appreciation and access to outstanding amenities, presenting a potential goldmine for agents.
Here are the top vacation home markets agents need to watch this year — and how they can appeal to these buyers with increasingly relevant solutions like co-ownership.
Source: Pacaso analysis of First American Data & Analytics second home transaction data YTD.
Florida gets its time in the sun
The rush to Florida that started during the pandemic continues to persist, as three Florida counties secure spots on this watchlist. The top market to keep an eye on is Volusia County, Florida, which saw a remarkable 47 percent year-over-year increase in average second home value and a 19 percent surge in second home transactions. Orange County and Indian River County, Florida, are also on this must-watch list, with more than 20 percent appreciation for luxury second homes.
Destination dupes
Expedia recently highlighted the phenomenon of “destination dupes” — budget-friendly alternatives to popular locations. It seems this trend is extending into the real estate realm, with locales providing more affordable housing options yet comparable amenities to their more famous counterparts.
In Washoe County, Nevada, home to Reno (also known as the “biggest little city”), there was a remarkable 26 percent appreciation in second homes from 2022. Brunswick County, North Carolina, the southernmost county in the state, also experienced a 26 percent appreciation, while Jefferson County, Colorado, witnessed an impressive 37 percent appreciation.
Park City prevails
Summit County, Utah, the cherished home of the year-round destination Park City, has experienced an impressive 18 percent increase in second home values from 2022 to 2023. It comes as no surprise that this beloved destination continues to be a must-watch destination. Homes within the Pacaso marketplace in Park City consistently deliver significant resale gains.
Growing markets, more opportunities
As buyers eye these vacation home markets, agents have the opportunity to offer compelling solutions to their clients to drive more sales. At Pacaso, we’ve seen co-ownership continue to grow as the smart — and even default — way to purchase a vacation home. We’ve answered that call by curating the top listings in more regionally-relevant destinations across the country for buyers to find the right vacation home.
More co-ownership listings mean more inventory and more opportunities for agents to earn money and drive new business. Learn more about how agents can partner with Pacaso to capture interest in vacation homes and appeal to their clients.
Methodology
To determine the top U.S. markets to watch, Pacaso analyzed the top U.S. counties that saw the biggest appreciation in second home value for homes priced above $1 million from 2022 to 2023. Data was provided by real estate analytics firm First American Data & Analytics and includes a sizable share of the market that is taken to be representative of the whole.
About Pacaso
Pacaso is the leading co-ownership marketplace for buying, owning and selling a luxury vacation home. We offer fully managed LLC co-ownership — a smart solution for buyers who want to enjoy a vacation home without having to pay for the whole property and deal with the hassles. We’ve curated the best listings, with shares starting at $200K. Agents earn a full 3 percent referral commission when their clients purchase a share of a Pacaso home in any market, no matter where the agent is licensed.