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HomefinanceTop 10 best places to buy a beach house in 2023

Top 10 best places to buy a beach house in 2023

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Buying a second home, whether it’s a lake house or a house on the beach, is a pretty significant investment for most. But it’s one that can come with many benefits like a side hustle or extra income if you use the space as a rental property.

In April, vacation rental management platform Vacasa released its annual ranking of the top 10 best places to buy a beach house in the U.S. based on the highest cap rates or yearly rate of return on investment.

To determine the ranking, Vacasa did the following:

  • Analyzed home sales and vacation rental performance data from the last 12 months
  • Used actual performance data for the market as a whole, where available, to determine average gross rental income
  • Considered the averages of the following in each market: property taxes, utilities, HOA fees, insurance, and property management fees to calculate the average cap rate

It’s important to note that Vacasa suggests buyers check current local regulations before deciding to buy a beach house because different areas have different rules about renting out a property.

No. 1 best place to buy a beach house in 2023: Lake Anna, Va.

Median rental revenue: $69,723

Median listing price: $385,000

Example cap rate: 12.08%

Lake Anna is Virginia’s second-largest lake, with about 200 miles of shoreline. It is split into two sections: a public side with waterfront restaurants and a private side where no commercial operations are allowed.

The lake is also easily accessible to those in the Fredericksburg, Richmond, Charlottesville, Northern Virginia, and Washington, D.C., areas.

Homes on the lake stretch across three counties with plenty of waterfront options that offer a splashy cap rate of 12.1% for homeowners, according to Vacasa.

Hatteras Island, North Carolina draws more than 2.5 million annual visits.

Wbritten | E+ | Getty Images

Top 10 best places to buy a beach house in the U.S. 2023



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