Looking to forget the vacation rentals and find a beach home of your own? Turns out, the best place to do it is right here in Alabama. According to a recent report by Vacasa, Gulf Shores was named the #1 place in the country to buy a beach home in 2022. Read on for all the sun-sational details.
Why Gulf Shores?
According to Redfin, buyer demand for second homes was up 87% at the start of 2022 from pre-pandemic levels, and sales are expected to remain steady. What better place to buy a second home than on the beach?
Every year, Vacasa publishes a report on where purchasing a second home has the sunniest outlook. Destinations are ranked by yearly rate of return on investment using Vacasa’s proprietary and market data.
So, what makes Gulf Shores number one? To quote Vacasa, “boasting over 32 miles of sandy white beaches, Gulf Shores is a mecca of pure paradise on the Alabama coastline.” Purchasing a vacation home or condo will cost around $400,000, but the capitalization rate, or yearly rate of return on investment, is over 10%.
Gulf Shores vacation homes by the numbers
- Capitalization rate: 10.2%
- Median Home Sales Price: $402,905
- Median Annual Gross Rental Revenue: $56,198
Sweeping the south
Gulf Shores got a special shoutout in Vacasa’s report for its exceptional award-winning restaurants, championship golf, amusement parks and water sports, providing guests with year-round entertainment.
Who else made the list? Far and away, the southern region dominates the top spots for best places to buy a beach home in 2022. Check out the top 10:
|Ranking||Market||Cap. rate||Median home sale price||Average annual gross rental revenue|
|1||Gulf Shores, AL||10.2%||$402,905||$56,198|
|3||Navarre Beach, FL||6.6%||$382,392||$43,202|
|4||New Buffalo, MI||6.6%||$569,873||$58,544|
|5||Daytona Beach, FL||6.5%||$247,960||$31,913|
|7||Hatteras Island, NC||6.4%||$482,447||$45,968|
|8||Rockaway Beach, OR||6.1%||$384,152||$48,030|
|9||Port St. Joe, FL||6.1%||$360,721||$39,688|
Well, what are you waiting for? Time to start hunting for that perfect beach home, right on the sunny shores of Alabama.
Check out more to explore in Gulf Shores:
- 5 reasons Labor Day Weekend in Gulf Shores is the ultimate choice
- USA Today names Gulf State Park one of the best state parks for camping + RVing
- 7 outdoor activities you need to try now in Gulf Shores
- Top spots for a seashell treasure hunt on the Gulf Coast
- 5 reasons Birmingham families are flocking to Gulf Shores now
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