There were some shifts in the rankings for America's hottest real estate markets for higher-end vacation homes this year compared to last, and the top spot this year saw a meteoric rise in popularity.
A fresh analysis from second-home co-ownership marketplace Pacaso revealed which U.S. counties were the hottest markets for luxury vacation homes in 2024, based on increases in second-home activity, the proportion of second homes to primary homes and demand for properties priced above $700,000.
Here were the most sought-after places for second homes in 2024, according to the findings:
The report showed Cape May County off the Jersey Shore catapulted from outside the top 20 last year to the title of No. 1 second home destination in 2024, and it wasn't even close.
BOZEMAN, MONTANA HOME TO A BOOMING REAL ESTATE MARKET
Cape May leads this year's list with a staggering ratio of second homes to primary residences exceeding 150%, thanks to its iconic beach towns like Ocean City and Avalon, according to the analysis.
Pacaso attributed the area's rise to its mix of family-friendly activities, nightlife, cultural experiences and wide beaches, coupled with its close proximity to urban hubs like New York City and Philadelphia.
"In Florida, Gulf, Walton, and Collier 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," Pacaso CEO Austin Allison told FOX Business.
TOP HOUSING MARKETS FOR 2025 REVEALED IN NEW FORECAST
While Florida's East Coast counties like Palm Beach (#13 on the list) are known for vibrant nightlife and cultural attractions, buyers continue to be drawn to the exclusivity of oceanfront living that the West Coast of the state offers families, Pacaso said.
Pacaso said Barnstable County, Massachusetts, home to iconic Cape Cod, continued to see growth in vacation home purchases in 2024.
"This legacy destination has been a popular vacation home market for decades," he said, "renowned for its charming beachside communities and historic ties to the Kennedy family, who vacationed there and own the famous Kennedy Compound."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
During the COVID-19 pandemic, many people flocked to Florida counties that are known for their vacation homes due to the state's favorable tax environment and yearning for more living space. Collier County in Florida's Panhandle, with an already strong market for second homes, became a popular destination for snowbirds. Naples and Marco Island are the more notable cities located within the county, where the average second home costs more than $896,000.
