Ranking the Nation’s Top Winter Vacation Home and Investment Property Locations – DSNews

Vacasa, a rental management platform, released its 2022-2023 Best Places to Buy a Winter Vacation Home report that found Wallowa Lake, Oregon, ranked first on the list, with an average home sale price of $282,237.

The report, Vacasa’s fourth annual listing, uses an estimated cap rate, or annual rate of return on investment (ROI), to help evaluate which winter markets can yield the best returns for vacation rental homeowners and investment property owners.

“More than half of the destinations on this year’s list are new entrants to our report, in part due to cap rate pressure we’ve seen in several major markets as home prices trended higher in 2021 and early 2022,” said Danaid Kirkham. Senior real estate manager in Vacasa. However, market dynamics have changed in recent months for both primary and second home properties. Rising interest rates since last spring have cooled the once-overheated housing market, giving buyers renewed negotiating power.”

Rounding out the top ten and next in Wallowa Lake, Oregon on our “Best Places to Buy a Winter Vacation Home” list were:

  • Poconos, Pennsylvania (average home sales price of $298,067)
  • Bear Lake, Utah (average home sales price of $377,061)
  • South Fork, Colorado (average home sales price of $387,173)
  • Banner Elk, North Carolina (average home sales price of $457,608)
  • Ludlow, Vermont (average home sales price of $459,888)
  • Warren, Vermont (average home sales price of $369,829)
  • Girdwood, Alaska (average home sales price of $508,051)
  • Teton Village, Wyoming (average home sales price of $2,131,796)
  • Lake Bend O’Reilly, Idaho (average home sales price of $935,395)

To determine its ranking of the top vacation rental markets, Vacasa analyzed home sales data and rental performance over the last 12 months for vacation destinations across the country where Vacasa or its affiliates operate at least 50 units. To determine the average gross rental income (homeowner’s income from reservations, excluding any fees) for the market, average actual performance data for Vacasa managed units in the past 12 months, and adjust this number to reflect assumed use by the owner. To calculate the average cap rate, we considered averages for the following in each state: property taxes, utilities, insurance, and property management fees. Markets with maximum permit limits or strict regulations that make it difficult to operate a short-term rental have been removed from the list.