Best Beach Vacation Rental Market in 2023?

[Matthew W.]

My wife and I are looking to purchase a beach vacation property where we can take the kids once or twice per year and then rent most of the year. We are not tied to a particular coastal market, since we understand that certain areas have higher taxes/fees/regulations/hostility to STR/flood insurance/etc.

I put together a 'short list', but please feel free to propose markets not listed! We really do want the most bang for the buck, and we're happy to consider sleepy areas or 'up-and-coming' destinations. It's probably relevant to disclose we have only owned 2 inland properties and are NOT experts at this, but appreciate your guidance and knowledge sharing. :)

Potential Markets:

Gulf Shores, AL

Corolla, NC

Rockaway Beach, OR

Myrtle Beach, SC

Charleston, SC

Port Aransas, TX

Ocean Shores, WA

** I assume the California coastline is not cost-effective, I never see it on a list of recommended vacation rental.

** We love and have connections to Hilton Head Island, SC but know it is hostile to STRs.

** Slight bias against Florida due to anticipated stress and anxiety of watching a hurricane hit your vacation home annually, ha.

[Jeff Fountain]

@Matthew W.I live in St. Simons Island, GA; somewhat of a hidden gem and one of GA's barrier islands. I have invested here since 2017 and continue to ride this market. What most are unaware of is the Federal Law Enforcement Training Center (FLETC) on the mainland in Brunswick. FLETC churns their visiting instructors from 6 to 12 months at a time with most wanting to live on the island, paying daily government Per Diem. Between that scenario and the STRs, the place booms year round. One hour north is Savannah Airport and one hour south is Jacksonville, FL airport. Great location. This place was NUTS during COVID as we received so many folks relocating and or investing. I have several properties here, many with SIGNIFICANT equity increases. Ref insurance. Remember you will not control mother nature. ALEXANDRIA, VA/D.C. area got hit with an earthquake several years ago so don't let mother nature convince you beach communities are your only risk. Carry a good insurance policy and keep investing. Feel free to PM me.

[Jeff Fountain]

@Matthew W.I live in St. Simons Island, GA; somewhat of a hidden gem and one of GA's barrier islands. I have invested here since 2017 and continue to ride this market. What most are unaware of is the Federal Law Enforcement Training Center (FLETC) on the mainland in Brunswick. FLETC churns their visiting instructors from 6 to 12 months at a time with most wanting to live on the island, paying daily government Per Diem. Between that scenario and the STRs, the place booms year round. One hour north is Savannah Airport and one hour south is Jacksonville, FL airport. Great location. This place was NUTS during COVID as we received so many folks relocating and or investing. I have several properties here, many with SIGNIFICANT equity increases. Ref insurance. Remember you will not control mother nature. ALEXANDRIA, VA/D.C. area got hit with an earthquake several years ago so don't let mother nature convince you beach communities are your only risk. Carry a good insurance policy and keep investing. Feel free to PM me.

[Zareena Sameen]

Personally, I will look at Myrtle Beach, fastest-growing place and there is something for everyone.

[Ben Scarborough]

Quote from @Matthew W.:

My wife and I are looking to purchase a beach vacation property where we can take the kids once or twice per year and then rent most of the year. We are not tied to a particular coastal market, since we understand that certain areas have higher taxes/fees/regulations/hostility to STR/flood insurance/etc.

I put together a 'short list', but please feel free to propose markets not listed! We really do want the most bang for the buck, and we're happy to consider sleepy areas or 'up-and-coming' destinations. It's probably relevant to disclose we have only owned 2 inland properties and are NOT experts at this, but appreciate your guidance and knowledge sharing. :)

Potential Markets:

Gulf Shores, AL

Corolla, NC

Rockaway Beach, OR

Myrtle Beach, SC

Charleston, SC

Port Aransas, TX

Ocean Shores, WA

** I assume the California coastline is not cost-effective, I never see it on a list of recommended vacation rental.

** We love and have connections to Hilton Head Island, SC but know it is hostile to STRs.

** Slight bias against Florida due to anticipated stress and anxiety of watching a hurricane hit your vacation home annually, ha.

Hey Matthew, I grew up in Pensacola, FL and currently live in Gulf Shores, AL.

You will not find prettier beaches anywhere in the US than the Emerald Coast of FL/AL. Yes, hurricanes can be worrisome, some much more than others, but with a reliable insurance policy, I have a hard time believing you will find a US beach market outside of the Gulf Coast that provides a more reliable income stream for at least 6, usually 8, months out of the year. In fact, from personal experience, majority of hurricanes are not nearly as terrifying as the news makes them come off. I am a structural engineer for my W2 job and it is actually insane how beefed up beach home designs are nowadays. Make sure you get a home that is gold-fortified as it can cut insurance costs almost in half.

I'd be happy to discuss more of my experiences growing up by the beach over the phone if you would like. Just shoot me a message!

Ben Scarborough

[Candace Pfab]

We have been investing in the Gulf Shores/Orange Beach area since 2009. Very stable STR regulations & have many options for new investors in this market. Happy to share our experiences with you any time. Vacasa ranked us the top place to buy a beach property last year & we consistently hit most of the top lists for affordability & revenue potential!

[Karl McGarvey]

Quote from @Matthew W.:

My wife and I are looking to purchase a beach vacation property where we can take the kids once or twice per year and then rent most of the year. We are not tied to a particular coastal market, since we understand that certain areas have higher taxes/fees/regulations/hostility to STR/flood insurance/etc.

I put together a 'short list', but please feel free to propose markets not listed! We really do want the most bang for the buck, and we're happy to consider sleepy areas or 'up-and-coming' destinations. It's probably relevant to disclose we have only owned 2 inland properties and are NOT experts at this, but appreciate your guidance and knowledge sharing. :)

Potential Markets:

Gulf Shores, AL

Corolla, NC

Rockaway Beach, OR

Myrtle Beach, SC

Charleston, SC

Port Aransas, TX

Ocean Shores, WA

** I assume the California coastline is not cost-effective, I never see it on a list of recommended vacation rental.

** We love and have connections to Hilton Head Island, SC but know it is hostile to STRs.

** Slight bias against Florida due to anticipated stress and anxiety of watching a hurricane hit your vacation home annually, ha.

 Port Aransas could be great, and TX in general did fairly well during COVID which keeps me optimistic for the future. I would also take a peek at our market up here in Galveston. In 2021 the National Association of Realtors named our island the best place to buy a beach house because of many factors but what stood out the most was our nightly rates compared to cost of properties. We also have year round events even outside of the summer season that keep people coming to the island, along with the 5th busiest cruise port in the nation. Happy to chat more about it if you would like, we love getting to share our island with people who have not yet heard about us.

- Karl

[Ricardo Hidalgo]

Have you looking into the Navarre Beach or Panama City Beach Market: 

1 Location: Located on the Gulf of Mexico, offering beautiful beaches and crystal clear water.

2 Lifestyle: Navarre Beach is known for its laid-back, beachy lifestyle, making it a popular destination for vacationers and retirees.

3 Investment potential: Property in Navarre Beach can be a good investment since there is tons of new construction occuring on the beach and inland.

4 Community: Navarre Beach has a strong sense of community, school systems with many local events and activities throughout the year.

5 Natural beauty: Navarre Beach offers a variety of natural beauty, from the beaches to the state parks and nature preserves.

6 Quieter: Navarre beach is a quieter alternative to the busier beaches of Pensacola and Destin, but still close enough to enjoy the activities and amenities of those areas.

7 Military friendly: Navarre beach is home to Hurlburt Field Air Force Base, making it a popular destination for military families and veterans.

8 Affordable: Navarre beach offer a more affordable option compared to other coastal towns in Florida, making it accessible for first time buyers or retirees.

Rentals, appreciation and gentrification is happening in these areas with new price point emerging due to infrastructure being built out. 

[John Mausteller]

I own a couple STR's in Northern Outer Banks (Duck / Southern Shores) and sell real estate in the area as well. Corolla is a highly desirable place! I have been very pleased with my investments here and have helped numerous investors purchase in Corolla and all over the Outer Banks. Let me know if you have any questions!

[Bracken Ray]

Great intel from this discussion! With AL / FL condos, how many are booked on STR hosting sites vs HOA owning renting them for you?