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Despite rising home prices and mortgage rates, second-home investors overtook a select group of vacation real estate markets. This week, online marketplace Pacaso highlighted counties in New Jersey, Florida and Massachusetts as leading markets for sales of luxury vacation homes.
Pacaso’s report revealed the top 20 counties for luxury home sales across the U.S. Counties are ranked by an index score, which was determined by the share of second-home sales to primary home sales in 2023 and 2024. The list excludes counties with less than 50 mortgage rate locks for second homes. All counties on the list have average prices above $700,000 — with further growth anticipated.
The No. 1 market is Cape May County, New Jersey. It is followed by Gulf County, Florida; Walton County, Florida; Barnstable County, Massachusetts; and Collier County, Florida.
“The destinations on this year’s list really capture the breadth of the luxury vacation home market,” Austin Allison, CEO and co-founder of Pacaso, said in a statement. “Legacy destinations remain as timeless as ever, Florida’s panhandle is solidifying its status as a favorite for vacationers, and Manhattan is resurging as a place where buyers are doubling down on second-home investments.
“These aren’t just weekend getaways anymore — they’re lifestyle investments for people looking to create endless cherished memories with friends and family.”
Allison went on to note that mortgage rates are beginning to ease, purchase mortgage applications have reached their highest levels since January and growing inventory is helping to drive more transactions.
“We’re seeing strong indications that demand for both primary and secondary homes will continue to grow into 2025,” he said.
Top-ranked Cape May County boasted a 150% ratio of second homes to primary homes. The average price for a second home there was about $1.1 million. New Jersey’s southernmost county has surged in popularity, rising from the final spot on Pacaso’s top 15 list of second-home markets in May 2023. Meanwhile, New Jersey was among the leading states for home equity growth, which may have placed buyers in a better position to invest in luxury real estate.
Florida had three counties among the top five second-home markets in 2024. The Sunshine State’s Gulf County occupied the No. 2 spot with a 77.7% ratio of second homes to primary homes. It is followed by Walton County at No. 3 with a 67% ratio at No. 3. Gulf County has an average price of just over $1 million for second homes, while Walton’s is about $1.44 million.
Florida’s Collier County was the No. 5 market on the Pacaso list. It has a second-to-primary-home ratio of 52.9% and an average sales price of about $896,000.
The report also highlights New York County (Manhattan) for its post-pandemic resurgence of investors who are buying uxury homes.
Pacaso’s marketplace innovates real estate co-ownership by listing vacation home ownership opportunities for multiple parties. In a recent interview on the “Real Estate Insiders Unfiltered” podcast, Allison spoke highly of the potential for co-ownership in the luxury space.
“Co-ownership of luxury vacation homes is carpooling for second homes,” he said. “Instead of having eight people buying up median-priced homes in a second-home community, you have eight people sharing a luxury home, creating more opportunity for the local workforce.”
