best beach towns to buy a vacation home

Posted 2025-06-25 06:50:52

Dreaming of owning a slice of paradise by the sea? Whether you're after a weekend escape, an investment property, or a future retirement spot, buying a vacation home in a beach town can be both a smart move and a dream come true.

But with so many coastal destinations out there, where should you invest? Here are some of the best beach towns to buy a vacation home in 2025—based on affordability, rental potential, lifestyle, and long-term value.

1. Gulf Shores, Alabama

Why it’s great:

Affordable property prices
Strong short-term rental demand
Family-friendly, white-sand beaches

Median home price: ~$360,000
Vibe: Relaxed Southern charm with high rental appeal during spring and summer

2. Cape Coral, Florida

Why it’s great:

No state income tax
Easy access to beaches and boating
Strong real estate appreciation

Median home price: ~$420,000
Vibe: Laid-back boating lifestyle with a mix of retirees and young families

3. Outer Banks, North Carolina

Why it’s great:

High vacation rental income potential
Unique barrier islands with scenic views
Popular year-round with beachgoers and fishermen

Median home price: ~$450,000
Vibe: Historic, outdoorsy, and peaceful—with strong summer crowds

4. Port Aransas, Texas

Why it’s great:

Lower property taxes
Consistent tourism
Charming, small-town beach feel

Median home price: ~$400,000
Vibe: Warm, welcoming, and walkable with a strong rental market

5. Myrtle Beach, South Carolina

Why it’s great:

Budget-friendly beachfront condos
Golf capital of the U.S.
Strong tourism infrastructure

Median home price: ~$295,000
Vibe: Lively and family-friendly with something for every age group

6. Traverse City, Michigan

Why it’s great:

Lakefront luxury without oceanfront prices
Popular year-round with wine, food, and nature lovers
Great for long-term value

Median home price: ~$410,000
Vibe: Artsy and active with a mix of beach life and small-town charm

7. Ocean City, Maryland

Why it’s great:

Iconic boardwalk and beach appeal
High rental income in summer
Excellent family destination

Median home price: ~$360,000
Vibe: Classic East Coast beach town energy, packed with summer fun

8. Tybee Island, Georgia

Why it’s great:

Proximity to Savannah
Quirky, colorful community
Great for weekend escapes and Airbnb rentals

Median home price: ~$475,000
Vibe: Relaxed, artistic, and off-the-beaten-path

9. South Padre Island, Texas

Why it’s great:

Affordable Gulf Coast living
Strong short-term rental market
Excellent weather year-round

Median home price: ~$330,000
Vibe: Sunny, fun-loving, and perfect for snowbirds or partygoers

10. Cannon Beach, Oregon

Why it’s great:

Iconic coastal views (hello, Haystack Rock!)
Charming downtown
High appreciation potential

Median home price: ~$675,000
Vibe: Quiet, artsy, upscale, and ideal for nature lovers

Tips for Buying a Beach Vacation Home

Know the rental rules: Some towns limit short-term rentals—check local regulations first.
Insurance matters: Flood and hurricane insurance can add costs, especially in coastal areas.
Consider upkeep: Salt air can be tough on property—budget for maintenance.
Buy with dual purpose: Look for homes that suit both personal use and rental potential.

Final Thoughts

Whether you're drawn to the Gulf Coast, the Atlantic shore, or even a Great Lake beach town, owning a vacation home by the water can be a smart financial move—and a deeply rewarding lifestyle choice.