Americans are itching to go on vacation again, according to several surveys. After COVID lockdowns, social distancing, and remote working, many people are hoping to get away after spending a bit too much time at home.
As a real estate investor, that’s excellent news. If you are thinking about owning a vacation rental as part of your investment strategy, it’s essential to realize that not all places are created equal.
Where is the best place to own a vacation rental?
Let’s take a look at six of the hottest vacation rental destinations in the U.S.
1. Pigeon Forge, Tennessee
Pigeon Forge is located right in the heart of the Smoky Mountains. This is a place where people flock for its wide array of family-friendly activities as well as its incredible natural beauty. People looking for vacation rentals are typically heading over to Dollywood or exploring Great Smoky Mountains National Park.
This isn’t just a vacation location for the warmer months, though. In the winter, you can find skiers seeking thrills at Ober Gatlinburg.
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2. Blue Ridge, Georgia
Blue Ridge, Georgia, is a place where vacationers can get away from it all. With opportunities to go horseback riding, hiking, trout fishing, apple picking, and so much more, this is the rustic heaven many people are looking for.
The nearby Chattahoochee National Forest is a place that visitors to Blue Ridge frequent, with impressive waterfalls and beautiful trails.
Visitors can also hop on the Blue Ridge Scenic Railway to check out the other mountain towns in the area. If your primary purpose in looking at real estate in this region is as a vacation investment property, try to find a location with views to boost your earning potential.
3. The Poconos, Pennsylvania
Located in northeastern Pennsylvania, the Poconos is the perfect vacation destination for travellers who love the great outdoors. Visitors arrive year-round to Poconos towns, including Albrightsville, Pocono Lake, and Tobyhanna. A place of picturesque mountain views and expansive woodlands, you might be tempted to live in your investment property yourself rather than rent it out!
This is a popular vacation spot for city folk in Philadelphia and New York City. In the summer there is excellent hiking and the opportunity for water sports. In the winter, skiing is the activity of choice.
The hottest booking demand in the Poconos is found in waterfront properties. If you want to have vacation rentals in the most competitive markets, look for properties near Arrowhead Lake or Lake Wallenpaupack.
4. Ruidoso, New Mexico
This is another one of the best vacation towns as it draws visitors throughout the year. In the winter, you can find skiers and snowboarders at the two resorts in town. During the summer months, you can find people down by Bonito Lake and spending time at the Ruidoso Downs Race Track. All through the year, you can find vacationers at the local casinos.
5. Broken Bow, Oklahoma
This historically charming and woodsy location is another one of the best vacation towns. With tons of watersports to play, trails to hike, and ATVs to ride, this is a paradise for outdoor lovers.
Whether people want to go paddleboarding or fly fishing, this is a beautiful spot to get away from the hustle and bustle of daily life.
6. The Catskills, New York
This lush mountain range has a collection of charming little towns only a few hours north of New York City. You can find New Yorkers in the Catskills throughout the year. Here they can enjoy the natural landscape, the restaurants, and the culture and arts.
There are many family-friendly activities in the Catskills, as well as opportunities for romantic getaways and outdoor recreational options.
What this means is that pretty much anyone can find what they’re looking for here. This is a quickly growing market, with a 40% growth between 2018 and 2020.
Top Vacation Destinations in the U.S.
For the 2021-2022 vacation season, U.S. News and World Report revealed the rankings for the best vacation spots in several different categories.
According to this report, the five best places to visit in America in this coming season are:
- Grand Canyon National Park
- Yosemite National Park
- Yellowstone National Park
- Maui, Hawaii
- Glacier National Park
The five best small towns to visit in America, according to this survey, are:
- Bar Harbor, ME
- Telluride, CO
- Jackson Hole, WY
- Lake Tahoe, NV, and CA
- Sedona AZ
With Americans antsy to get out of the house and get a little much-needed R&R, many places in the country have promising potential to make income from rental properties.
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The Best Place to Own a Vacation Rental Is the Property That Works for Your Needs
While these are some hot markets when it comes to the best place to own a vacation rental in the U.S., that doesn’t mean these are necessarily the right places for you to invest. There are many considerations to keep in mind when you are deciding this magnitude.
Maybe it’s important to you that your vacation rental is nearby to where you live. This way, you can benefit from using it when you choose and manage it yourself if you’d like. Or, maybe you are looking for the highest return on investment and plan to hire a property management company, keeping it as hands-off as possible.
Did you find this article about top vacation destinations and rental property locations helpful? If so, be sure to check out the rest of our blog!