Planning Your Next Getaway: The Hottest Luxury Vacation Home Markets for 2025
As the holiday season wraps up, it’s the perfect time to start dreaming about your next vacation. Whether you’re looking for a cozy cabin in the mountains or a beachfront paradise, understanding where to invest in a luxury second home can make all the difference.
A Shift in Luxury Real Estate Rankings
This year has seen some notable changes in America’s most desirable markets for high-end vacation properties. According to a recent report from Pacaso, an innovative co-ownership platform for second homes, certain U.S. counties have surged ahead as top contenders based on various metrics such as increased second-home transactions and demand for properties priced over $700,000.
Cape May County Takes Center Stage
Leading the pack is Cape May County, New Jersey—a surprising newcomer that jumped from obscurity to claim the title of No. 1 destination for second homes in 2024. This coastal gem boasts an impressive ratio of more than 150% of second homes compared to primary residences, thanks largely to its charming beach towns like Ocean City and Avalon.
The appeal? A delightful mix of family-friendly activities, vibrant nightlife options, cultural experiences galore, and expansive beaches—all within easy reach of major urban centers like New York City and Philadelphia.
Florida’s Coastal Hotspots Shine Bright
Florida continues to be a magnet for luxury homebuyers seeking sun-soaked retreats. Gulf and Walton counties are emerging as prime locations along Florida’s Panhandle—home to picturesque towns along Highway 30A and upscale Naples—offering coveted oceanfront properties that are increasingly hard to find in traditional hotspots like Miami or Palm Beach.
Austin Allison, CEO of Pacaso, noted that while Palm Beach remains popular due to its lively atmosphere and cultural offerings (#13 on this year’s list), buyers are gravitating toward the exclusivity found on Florida’s West Coast.
Barnstable County: A Timeless Classic
Another standout is Barnstable County in Massachusetts—famous for its iconic Cape Cod region—which continues its upward trend with increasing vacation home purchases into 2025. Known historically as a beloved getaway spot (think Kennedy family vacations at their renowned compound), this area offers charming seaside communities steeped in history alongside modern amenities.
The Pandemic Effect: Shifting Preferences
The COVID-19 pandemic reshaped many aspects of life—including where people choose to live part-time or full-time. With remote work becoming more prevalent and families seeking larger living spaces away from crowded cities, many flocked toward Florida’s inviting climate during lockdowns.
Collier County emerged as one such hotspot on Florida’s West Coast; it became particularly appealing among snowbirds looking for seasonal escapes. Cities like Naples and Marco Island dominate this market with average prices exceeding $896K per second home—a testament not only to their desirability but also their robust real estate growth trajectory post-pandemic.
What Lies Ahead?
As we look forward into 2025—and beyond—the trends suggest continued interest across these regions driven by lifestyle changes brought about by recent global events coupled with favorable tax environments found particularly within states like Florida.
In summary: if you’re contemplating investing in a luxury vacation property this year—or simply daydreaming about your next escape—keep these rising stars on your radar! From Cape May’s sandy shores bursting with charm through sunny Floridian retreats down south—the landscape is ripe with opportunity just waiting for savvy buyers ready take advantage!
So grab your sunglasses (and maybe some sunscreen) because planning that dream getaway might just be closer than you think!
