MSN Money picks the top 10 places to buy a second home
This article was released in 2003 but I was very interested in which areas made the top 10 list. I was hoping there might be comments about whether this list is accurate. -jmiller
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Looking for vacation property that’s a good investment as well? These communities offer weather, scenery and active real estate markets. Plus: 10 more up-and-comers.
Popularity is a mixed bag when you’re looking for vacation property.
A hot destination means more crowds, more traffic, longer lines. But if you’re keeping an eye on investment potential — and more than one out of three second-home buyers say they are — then you want to buy where others want to be.
What you really want, though, is to buy today in an area that’s going to be hot tomorrow, so what are the ingredients that will turn a sleepy village into the next Aspen or Hilton Head?
A beautiful setting is a must, but here are some other important factors:
- Proximity to growing urban centers. Vacation towns typically need to be within a two- to three-hour drive of a major city, or at least reasonably close to a big airport.
- Plenty of recreational opportunities. There has to be lots of stuff to do beyond shopping, which is why most thriving resort towns are near ski lifts, beaches or mountains. Some cultural cachet — a theater or film festival, galleries or museums — is also nice.
- Decent weather. You have to be able to get outside to enjoy all that recreation.
- Significant commercial investment. The old-timers may grouse about the new hotels or malls, but these are good indicators that others think the community is on the way up.
- The “it” factor. The community gets discovered by movers, shakers and celebrities — or at least enough other folks like you — for prices to get bid up.
Consider the following two lists of hot (and potentially hot) vacation home markets compiled by EscapeHomes.com, an online listing service for second homes, timeshares and other vacation property. Youll see some interesting similarities, as well as a few towns that break the rules.
The top 10 towns for second-home investments
EscapeHomes.com identified popular second-home destinations that appreciated at least 10% a year in value between 1998 and 2002 and which may have further to go.
The results are based on their own listings for real estate in these communities. Listings aren’t sales, though, and EscapeHomes.com doesn’t reflect the whole market. In fact, real estate professionals in some of these towns (Asheville, N.C., for example) say sales were never that hot, while those in others (Park City, Utah, and Sunriver, Ore.) say appreciation has slowed in recent years.
Where possible, Ive included price appreciation figures compiled by the federal Office of Federal Housing Enterprise Oversight, which oversees housing finance companies Fannie Mae and Freddie Mac and which compiles housing sales data for larger metropolitan areas.
With all those caveats aside, here are the Top 10 second-home investment markets:
- Asheville, N.C. This mountain town boasts the Biltmore Estate and a thriving arts and crafts community. Home prices are up 35% in the past five years, compared with the national median growth of 27.8%.
- Park City, Utah. The Olympics-related frenzy has cooled, but Park City is still a preferred destination for skiers and other winter sports fanatics. Prices this year are up between 5% and 7%, according to real estate broker Mike Sloan, statistician for the areas Board of Realtors.
- Ashland, Ore. Lovely weather, lovelier scenery and cultural cachet combine in Ashland. Located about halfway between Portland and San Francisco, the town is also home to Southern Oregon University and the highly regarded Oregon Shakespeare Festival. Ashland’s home values have exploded in recent years. Home prices in the region that includes Ashland and nearby Medford have risen at least 40% since 1998, according to federal figures, while a local appraiser puts Ashland’s average home price growth closer to 70% in that period.
- Port Townsend, Wash. This picture-perfect Victorian seaport lay nearly untouched for most of its long history until being discovered by Seattle yuppies in the 1990s. It’s still quaint, but relatively mild weather and proximity to Olympic Peninsula attractions have increased its appeal for retirees and urban refugees.
- Beaufort, S.C. You know Beaufort, even if you’ve never been there. You’ve seen it in movies like The Big Chill and Forrest Gump, and you’ve read about it in the pages of The Prince of Tides and The Great Santini by one-time Beaufort resident Pat Conroy. Fishing, shrimping and a National Historic Landmark District are features of The Queen of the Carolina Sea Islands.
- South Lake Tahoe, Calif. Though it shared Americas largest alpine lake with the more glamorous Lake Tahoe, Nev., this community was long the dowdy little sister. No more. Two new Marriott’s have replaced a strip of decaying old motels along the main drag, and there’s talk of a convention center. Median home prices are up 21% from last year, said Madeleine Gutierrez, vice president of the South Lake Tahoe Association of Realtors.
- Daytona Beach, Fla. Nineteenth-century industrial barons popularized Daytona, which is probably best known for the international raceway built in 1959 and the Daytona 500 auto race. Eight million visitors pour through annually. Home prices are up 44% in the past five years and nearly 9% in the last year alone.
- Sunriver, Ore. This central Oregon resort area is near Bend and the Mt. Bachelor ski resort, about four hours from Portland and two hours east of Eugene. Whitewater rafting, hiking and skiing are favorite pastimes. Prices on some properties are about double what they were eight years ago, realtors say, but appreciation has slowed down in recent years along with the economy.
- Myrtle Beach, S.C. The beaches along The Grand Strand — and the areas 120 golf courses — draw 14 million visitors annually. Despite the crush, Myrtle Beach consistently winds up in various listings of the nation’s best beaches and best retirement towns, with home prices rising at an 8% annual clip.
- Charlevoix, Mich. This little town lies between the shores of Lake Michigan and Lake Charlevoix in northern Michigan. The population of the town and surrounding area is 8,500 full-time residents — which climbs to 30,000 in the summer. Golf courses and water fun are the main attractions.
10 emerging second-home markets
Here’s another intriguing list EscapeHomes.com has concocted: vacation-home areas that are just beginning to get popular with its users. There’s no guarantee any of these will become the next Myrtle Beach. In fact, given the more remote and generally northern location of many of these sites, you can pretty much count that out. But there could be some second-home price appreciation ahead.
- Burnside, Ky. Community boasts a Catfish Festival and bills itself as The Only Town On Lake Cumberland! Its near Lexington, Frankfort, Louisville, Nashville and Knoxville and not far from the Big South Fork National Recreation Area.
- Caribou, Maine. Snowmobilers and cross country skiers venture down from Quebec and New Brunswick to enjoy the scenery in this northeast Maine town.
- Ely, Minn. The Gateway to the Boundary Waters Canoe Area Wilderness is a second home mecca for residents of Duluth and Minneapolis-St. Paul.
- Island Park, Idaho. This area near Yellowstone and the Grand Teton national park’s, is becoming an alternative to Bozeman, Mont. and Jackson, Wyo.
- Ketchikan, Alaska. This is a paradise for hunters, hikers and anglers, but you have to want to get there. Its more than 37 hours by road and ferry from Seattle, the nearest big city. Closer is Juneau, the state’s capital, but you still can’t get from here to there by road.
- Lake Martin, Ala. Bass fishing is big in this town nestled in the southernmost foothills of the Appalachian mountains. Nearby: Birmingham, Montgomery and Atlanta.
- St. George, Utah. Speaking of gateways, this little town is near much of Southern Utah’s most spectacular country, including Zion Canyon, Bryce Canyon, Cedar Breaks National Monument and the North Rim of the Grand Canyon. Closest cities: Las Vegas and Salt Lake City.
- Sisters, Ore. Another Central Oregon contender, Sisters is northwest of Bend. It’s a former lumber town turned fishing and tourist mecca on the edge the Deschutes National Forest. Closest cities are Portland and Eugene.
- Waterville Valley, N.H. Tucked inside the White Mountain National Forest, Waterville Valley offers all the outdoor experiences you could want, and then some. Concord and Manchester, N.H. are nearby. Boston is about 2 hours south on Interstate 93.
- White Mountains, Ariz. A cooler alternative to Phoenix, about four hours away, the White Mountains region offers snow sports in winter, golf and hiking in the summer and picturesque Indian villages all year round.
Liz Pulliam Weston’s column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.
My wife Allyson and I moved from the coast to the mountains about 6 years ago and have lived in Cashiers, Hendersonville and now Asheville and couldn’t imagine living anywhere else! This area just gets in your blood and you never want to leave… maybe it’s the climate, the lifestyle, the outdoor activities, the low crime, etc. If you are looking to discover wnc, let us know and we are happy to assist! Feel free to check out are websites at: http://www.carolinamountainsales.com or http://www.discoverwnc.com
How Charleston, SC did not make either The Top 10 Towns for Second-Home Investment or, 10 Emerging Second-Home Markets is puzzling. Over the past years dozens of articles have been written by various major publications about the strength of the Charleston, SC housing market. You can read these articles on my BLOG: http://www.searchcharlestonscrealestate.com/blog/category/charleston-sc-real-estate/charleston-news-articles/
Vacation or second homes is selling quite well in the current market. Wild Dunes and Kiawah and Seabrook Islands are the most resort-like in the Charleston area. Coastal beach communities like Sullivan’s Island, Isle of Palms and Folly Beach embody Lowcountry living and are extremely popular destinations for vacationers. The demand for Charleston are beach rentals is steady through all seasons which, if rented, helps reduce the carrying costs of owning a second-home.
Thrilled to see Beaufort SC in the top 10. We’ve known it for years and up till now has been the world’s best kept secret ! Stunning marshes, waterways, live oaks, fabulous history, all the arts, as well as crafts, beaches, outstanding restaurants – you name it, it’s all there. In fact the whole area of Beaufort, Bluffton and Hilton Head Island provide the most wonderful lifestyle – truly a “State of Mind”. We can help with relocation, finding your ideal community, buying your second home or investment, helping you choose your perfect lot and introducing you to the finest custom home builders in the area.
What about Scottsdale, Arizona? There is no better place to be in the winter. We have the most beautiful sun-drenched weather, our skies are always blue and our golf courses always green. Plus the prices for vacation homes in 2009 are unbelievable. I’ve lived here 20 years and I never thought I would see prices this low again. Talk about getting in on the ground floor! We enjoy all major sports, fantastic shopping, wonderful cultural events and our prized Sky Harbor International Airport offers great access from everywhere. I find so many deals every day that I finally made a web site to post them, hoping someone smart will see them and appreciate them. Have a great day! http://www.scottsdaledealfinder.com
I lived in Orlando FL for 8 years, working in the vacation home industry and real estate. I came here to visit and decided it to move a month later. I fall in love with the mountains, the weather the beauty of the area, the seasons and the southern hospitality. This is a vibrant and cultural diverse area. Great lifestyle with world class restaurants, shopping, theater and of course the outdoors. Ideal to live year round or to have the vacation home, second home or mountain log cabin, which can be rented out when you are not in town. I specialize in vacation homes, management and rentals please visit our websites for more details http://www.keytothemountains.com or http://www.asheville-realestateinvestments.com
I agree with many of the cities the author has included. They have a lot to offer.
However the price appreciation amounts must be from a few years ago as they
don’t seem accurate for 2008 and 2009. How about St. Augustine, FL and surrounding areas?
Second home towns, interesting that they’re often found in the south and east predominantly. We have a wonderful little berg here in the form of a Bavarian Themed town by the name of Leavenworth, WA. This little bit ‘o heaven is just 110 miles from Seattle and the general Puget Sound region boasting 300 days of sunshine a year. That provides much of the appeal to our west side friends who find the rain to be just too much periodically. This area features the bavarian themed downtown corridor and shopping for everyone. In addition we have a wonderful venue referred to as the Barn Beach Reserve encoumpasing some of the history of our town and The Audoban Society as well ( http://www.barnbeachreserve.org/ ). Birding has grown to a significant reason to visit here in unison with rock climbing, some of the very most beautiful hiking available and various other outdoor pursuits including mtn biking and river rafting and kayaking. For culture you’ll find the various outdoor theatre offerings including our signature The Sound Of Music performed in a scenic stage looking into the peaks southwest of the village. Or possibly at the foot of the sleeping lady is the conference center
( http://www.sleepinglady.com/home/ ) of the same name featuring a near spiritual experience and right next door is the Icicle Music Center ( http://www.icicle.org/ ) where one can enjoy world class stringed ensembles. We really have it all, or at least very close. Visit our website at http://www.johnsrealestate.net . Contact me at steve@johnsrealestate.net and I’ll answer any questions I can for you.
There’s no doubt that all those are great places to have a second home, but I think Austin should be in there. We have so many great events that it is great to have a place when the city has things like The Trail of Lights, South by Southwest, Austin City Limits, concerts in the Park, and other festivals and rallies. Of course, I might be slightly biased!
Great post and thanks for the info.
Joe Cline, REALTOR, Broker, ABR, CRS
http://www.joecline.com
I believe Panama City Beach is a great second home market. They have seen a tramendous amount of development and renovations to the entire city. The even have a new “outdoor living center” called Pier Park that’s by far the most beautiful shopping, dining and entertainment center I’ve ever seen. You can also get really good deals on beach-front condos. Look at this site: http://www.2millers.com
Oh, they also have a new international airport that’s supposed to be completed in 2010. It’s the first “green” airport. Pretty cool!
While the top 10 list is impressive, I would suggest that the Fl Key’s, in particular the Upper Key’s offer everything one needs in the way of great second home location. With the only living reef in the continental U.S., great weather, diving, offshore fishing , back country fishing, birding, some of the most beautiful sunsets in the world, friendly people, close to major city (Miami) yet far enough away to feel as if you are a 1000 miles from the real world. With low crime, great weather, cultural art’s, and best of all low stress, we can easily say that we compete with all of the list and certainly exceed many on it. If you have not visited the Fl. Key’s, then do yourself a favor and enjoy all that we offer. Jim Mooney
From the coast to the mountains, South Carolina has year round weather conducive for all activities. I’m particial to the beachs around Charleston because of their affordability and the proximity to Charleston. Charleston has a BIG city flavor with a small town flare and minimal traffic! Our real estate prices have suffered as have those in other areas along the coast but we have a quality of life here on the Isle of Palms that is second to non. Isle of Palms is a bedroom community to Charleston and has a world class resort at it’s north end called “Wild Dunes”. This resort shares both year round, second homes as well as investors. This is in large part due to the fantastic quality of life our community offers. There are boating, fishing, hunting, hiking the national forest, history every were, multiple colleges and hospitals with easy access from all locations. I have listed my website if your want more details about the area or just come and experience our community some time. We are the best!
http://www.islandrealty.com
As a real estate company specializing in active adult and golf communities in Western NC, I couldn’t agree more with Asheville’s #1 ranking. Our second home buyers make up at least a third of our community’s residents. We have solid appreciation and never went through the roof on home costs, so therefore never had the big bubble to burst.
Another amazing four-season spot that was not mentioned is the Yakama River Valley and Cascade Mountain Range just 1-2 hrs east of Seattle on I-90. It incorporates the towns of Roslyn, Cle Elum, and Ellensburg, WA. It offers every recreational opportunity you can think of along with charming historic towns, a state university, sunny weather (unlike Seattle), and slow-paced outdoor living. This area hits all the points Liz mentions in the article. In fact, a resort community called Suncadia has recently been built right in Cle Elum, WA. The resort offers a four-star lodge, fine dining, a luxurious spa, three golf courses (one of which is private), amazing river and mountain views, and countless outdoor activities. They also have homesites and attached and detached homes for sale. Check it out at http://www.suncadia.com.
Thought I would mention Lake Anna, VA. It is not world famous but it sure is famous with those that have discovered it. As a REALTOR here and a full-time resident for 17 years I love the location near Washington, D.C., Fredericksburg, Richmond, and Charlottesville. This beautiful lake provides a place for fun out here in the country.
If you want it all–beautiful weather, within an hour of a bustling city and amazing scenery, look no further than the beautiful Texas Hill Country. Horseshoe Bay on Lake LBJ and the nearby town of Marble Falls make ideal second home spots. There is an abundance of outdoor activities, from a myriad of golf courses to horseback riding on beautiful ranches. If you’re looking for a second home or a great investment opportunity, check out local area listings on my website, MaryTheRealtor.com.
I cannot believe Naples Florida did not make this list!!! Southwest Florida is paradise times ten! Beautiful-pristine beaches (2005 Best Beach by the Travel channel) , World-class shopping–you name it, over 100+ golf courses, enough gourmet restaurants to eat out EVERY night of the year, unbelievable museums and art galleries (voted Best Small Art Community in the country last year), one of only 19 philharmonic orchestras in the Nation–check out http://www.thephil.org –just a 30 minute drive from an International airport and a short drive to so many natural wonders including The Everglades, close to the winter home of several major league teams, live theatre, a fabulous zoo, low crime, –AND, it’s a balmy 70+ degrees all winter long!! So, you were looking for the “it” factor! Please come to Naples and see why we think it is one of the most beautiful little cities in the world!
We are extremely pleased to see South Lake Tahoe, California listed as one of the top 10 towns for second home investments! To set the record straight, we’d like to submit a few corrections:
Madeleine Gutierrez was President for the South Tahoe Association of REALTORS in 2005, and we greatly appreciate her years of dedicated service. Our current 2009 Vice President is Amanda Adams, and our 2009 President is Barbara Childs.
Also, please note that in comparing South Tahoe Association of REALTORS Multiple Listing Statistics year over year, the median sold price for a single family residential home is down 7.8% from the previous year. (This is for City & County areas of South Lake Tahoe in El Dorado County only, for 4/30/08-4/30/09 sales compared to sold listing data for the period of 4/30/07-4/30/08.) This percentage drop is relatively small compared to other areas in the United States in the current economic climate, which actually highlights a strength and stability in our market.
We anticipate great additions to our community in the coming years with reinvestment and redevelopment plans, including the Conference Center mentioned in the article and planned improvements for the Lake Tahoe Unified School District, financed by a recently passed bond measure. South Lake Tahoe remains a wonderful affordable alternative for vacation home ownership in Tahoe, with access to the Lake, mountains, meadows and forests; and all of the recreation that affords.
Great cities for sure! Just curious, nothing in the midwest? Seems its all west or east coast for the most part. Or how about Texas? Round Rock is a great community. I am partial to St. George, but I think it is one of the best places to get away. So much to do outdoors, Lake Powell is close, Grand Canyon is close, tons of national parks, its a great place!
Hey jmiller, this top ten list is fantastic. My In-Laws just moved to Asheville, NC and it is a really nice place to live. You are situated near the Blu Ridge mountains which are gorgeous and the people have Southern Hospitality with a California progressive attitude. The Biltmore house is also a great place to visit, you can get a year long pass and use their grounds like a park almost. You can post this to our site http://www.toptentopten.com/ and link back to your site. We are trying to create a directory for top ten lists where people can find your site. The coolest feature is you can let other people vote on the rankings of your list.
Having difficulty understanding why Santa Fe, NM is not on either list. Fits your criteria to a “T”–and prices here are significantly lower than ever before. What was once desirable but unaffordable is still desirable and now affordable.
Have you never checked into Hot Springs Village, an adult resort community, and America’s largest gated community? We are private, located 20 minutes north of Hot Springs which is ranked in the top 10 of small size art towns. We have 11 lakes, 9 golf courses, 25 miles of hiking trails, health care facilities. We manage our own water, police, and fire protection. We’re near the Clinton Presidential Library, Magic Springs and Crystal Falls waterpark, and Oaklawn Race Track. It is peaceful, safe, and people come here from all over the world. I sell real estate for Hot Springs Village Real Estate and would love to show you “America’s Best Kept Secret”. Ask for Jeanne.
What about Big Bear Lake, CA? It´s the only 4-season resort in Southern California with two ski/snowboard resorts, a boating/fishing lake, horseback riding, hiking, and everything else you could want in a second home community.
How about the upper Eastern Shore of Maryland on the Chesapeake Bay and it’s tributaries. The best boating/sailing, historical sites and bicycling.It is where beautiful farm land meets the Bay. Nice and quiet but within an hour to 2 hours to major metropolitan areas as Baltimore, Washington and Philadelphia.
WHAT ABOUT BEAUTIFULL TENNESSEE. WHERE ARE THE BEST PRICES, MOUNTIAN VIEWS, CLOSE TO HOSPITALS, SHOPPING AND RESTAURANTS? I WOULD LOVE TO FIND A GREAT DEAL IN TENNESSEE.
Regarding Sunriver and Sisters in central Oregon, golf should be listed as a major summer activity (April through October actually). Some courses in Bend and nearby Redmond are playable almost year round. Central Oregon has numerous quality golf courses and I’m surprised this wasn’t mentioned in the article.
Hello? “This article was released in 2003.” It is now 2009 – keep up please. I agree with Troy totally – I believe Panama City Beach is a great second home market. They have seen a tramendous amount of development and renovations to the entire city. The even have a new “outdoor living center” called Pier Park that’s by far the most beautiful shopping, dining and entertainment center I’ve ever seen. You can also get really good deals on beach-front condos. Oh, they also have a new international airport that’s supposed to be completed in 2010. It’s the first “green” airport. Pretty cool!
Please check my website out: http://www.sugarsandproperties.com to see what great offering we have!
I may regret telling ya’ll about this secret but it would be an injustice not to share…..so I’m going to whisper it. The Outer Banks of North Carolina is one of the best kept real estate secrets on the east coast! If you’re looking to be on the beach and are seeking the “beachy” carefree lifestyle… well look no more, or better yet, look at the map! The area in general is miles upon miles of pristine beaches that can cater to anyone and any age. Whether you like to beach walk, surf, fish, kite board, hang glide or just chill on your deck and smell the salt air the Outer Banks has it. And did I mention?…. Prices are incredible! (And there is a great supply of inventory.) You can w/out a doubt reap the rewards of this buyers market on the Outer Banks!
You need to come see this area, but don’t tell too many people…..let’s keep it between us! ;.) Just log on to http://www.Investforshore.com to learn more about this amazing place.
My wife and I lived in San Diego for 11 years before moving to Asheville a few years ago. San Diego is certainly well known for its incredible beauty and probably the best weather in the country, but we really love and enjoy Asheville a lot more, not only because we could afford many times more houses here, but Asheville also offers a lot more things that are important to most people. It’s really true that Asheville is among the best places for business and career in the country (Raleigh [Asheville's state capital city] ranks #1 and Asheville ranks #6 according to recent rankings by Forbes). Its climate is temperate (attracting evermore people from Florida, New York and many states to move here), health care is extremely strong (Mission Hospital system ranks among the top 100 in the nation), it is extremely scenic and its tourism very strong (it has America’s longest house and many attractions), its education system is very good…. Asheville has all the right ingredients for continuing real estate appreciation.
Nashville, TN is also a great spot for a second home. We are centrally located, and offer wonderful amenities for those country music lovers out there. Our urban core now offers a ton of new construction condo and loft options. Visit http://www.NestingInNashville.com to lean more!
Smith Mountain Lake is 40 mile lake located in 3 counties and numerous small towns. Visitors are always trying to find the city of Smith Mountain Lake, and of course cannot. Put one of the following Virginia cities into your GPS Moneta, Wirtz, Huddleston, Union Hall, Goodview — and you will see the Smith Mountain Lake area. The area is one of the fastest growing areas in Virginia because it offers a small town atmosphere, a beautiful clean lake, record size large and small mouth bass and stripers, and much more. The housing is diversified from small condos to multimillion dollar homes. Because the workforce can now work from remote locations, many business people from the NC and Washington DC areas are buying on and around the lake. We invite you to visit and experience the Smith Mountain Lake area and see for yourself why so many people are moving here.
I am a Resort and Second Home Real Estate Broker in Myrtle Beach, SC. I’ve lived here for the last 33 years.
The data is old but there is no reason not to believe that all of the above locations will continue to be desirable places to retire or own a vacation home.
We are currently in the midst of record breaking low prices because of many foreclosures and short sales in my resort community. Currently (June 22, 2009) some properties are selling at prices I last saw in 1999.
I invite all interested to visit my website to view some of the best real estate bargains in Myrtle Beach, SC.
Susie Axt
REALTOR, Bluewater Properties
Myrtle Beach, SC
http://www.MyrtleBeachDreaming.com
TURNING YOUR DREAMS INTO REALITY
Thanks for the article. Though dated, it was an interesting read. Many of the communities that put western NC on the map have now folded while others have emerged as wonderful destination resort communities. I often here complaints about how difficult it is to navigate the many options when one isn’t local. My company is based around that simple premise, that there should be a local resource that advocates on behalf of the respected developers and steers away from the risky propositions. Check out our Community Spotlight newsletter. It’s free.
http://www.nc-mountain-homes.com and http://www.mountainhomecommunities.com