Mountain Commute Challenges
Love spending time in the mountains but hate the commute? As city dwellers migrate to the country, winter vacation homes are top of mind for those looking to spend more time on the ski slopes. Furthermore, Vacasa has collected data on exactly where to buy.
Data on Winter Vacation Homes
To assist potential winter vacation homeowners in determining the best location to invest, the vacation rental company examined the ideal cold-weather U.S. destinations. They did this based on estimated cap rate, which is simply the “yearly return on investment,” as noted by Vacasa in a blog post regarding their findings.
Shaun Greer, Vacasa’s former vice president of real estate and strategic growth, shared, “Vacasa ranks the best places to buy a vacation home by analyzing median home prices and actual vacation rental performance data from the past year — along with estimated taxes, utilities, and operational costs of a rental — in destinations across the country where we manage properties. We also evaluate the regulatory landscape in each market and a homeowner’s capacity to utilize their vacation property as a short-term rental.”
Rising Interest in Northeast Ski Markets
The Northeast and East Coast claimed over half the top positions in Vacasa’s rankings; this is the first occasion that the region has outpaced more traditional Western ski markets. Additionally, 2022 saw a rise in lesser-known winter destinations making the list, including Newry, Maine, Gatlinburg, Tennessee, and Deep Creek, Maryland. This could indicate a growing trend in winter vacations that extend beyond just skiing and snowboarding, as many travelers search for alternative outdoor activities.
Top Winter Vacation Home Markets
According to Vacasa, there has been an increase in average rental rates in the top markets, which could lead to higher vacation rental income for owners wishing to rent out their winter vacation homes for passive income.
In terms of top markets, Newry, ME ranked first with a 12.3% cap rate and a median home cost of $245,965.
Although the northeastern region might not be the first that comes to mind for skiing, the powder at Sunday River Resort contributes to the town’s impressive 12.3% cap rate. In addition, the Jordan — the fastest eight-person chairlift in North America — is available to transport guests to the summit.
In Gatlinburg, TN, a well-known town along the Appalachian Trail, the market ranked second with an 8.4% cap rate and a median home cost of $335,750. The Poconos, Pennsylvania, followed in third with a 6.9% cap rate and a median home cost of $274,500. The top five is rounded out by Deep Creek Lake, Maryland, which secured fourth place thanks to a 6.2% cap rate and a median home cost of $439,367, while Conway, New Hampshire, ranked fifth with a 4.8% cap rate and a median home cost of $343,412.
