🔥Vacation Home Price Corrections and Opportunities

🏠 The Top Trending STR Homes for Sale

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Today’s issue highlights vacation home price corrections and opportunities, offering insights into shifting market trends and how STR investors can capitalize on them. Dive into this week’s top property deals and stay updated with the latest industry news.

Vacation Market Trends: Vacation market opportunities, price corrections, and rising inventory.

✅ STR Deals Spotlight: Discover this week’s top STR Homes for Sale, including exclusive off-market listings!

✅ STR News Nuggets: Stay informed with the latest must-read headlines in short-term rentals and real estate.

— The STR Scout Team

🏖️ $144K | Baiting Hollow, NY: Established seasonal STR. Grosses $25-28K annually. Cash offers only. Turnkey investment opportunity. View Post

🚤 $188K | Morgan City, LA: 3BD, 2BA 900 sqft houseboat STR with hot tub and kayaks. Grossed $35K in 2024 at 46% occupancy. No STR restrictions, low competition. Fully updated, turnkey. View Post

🌲 $200K | White Mountains, NH: Tiny home on Forest Lake, 0.4 acres. 90%+ occupancy May-Oct, grosses $30K. Power, holding tank, lake water. Near Littleton. View Post

🏔️ $240K | Meadows of Dan, VA: Established log cabin STR in Blue Ridge Mountains. Grosses $35-40K annually over 15+ years. Turnkey investment. Available Feb 1. View Post

🏙️ $279K | Cleveland, OH: Proven STR with excellent performance. Experienced host with 3,500+ reviews. Turnkey investment opportunity. View Post

🏡 $311K | Knoxville, TN: 2BD, 2BA, 1041 sqft home in Fountain City. Built in 2022, energy-efficient with open floor plan. Private backyard patio. Furnishings negotiable. View Post

🌲 $315K | Port Angeles, WA: 1BD + loft, 386 sqft Airbnb on corner lot. Grosses $50K+ annually. Outdoor space with gazebo, fireplace, and BBQ. Turnkey investment. View Post

🌲 $350K | Poconos, PA: Cabin with rental history since 2018. Low HOA fees, no gated community, minimal rental restrictions. Strong STR potential. View Post

🏡 $408K | Summerville, SC: 4BD, 2BA home 20-35 min from downtown Charleston. Grosses $57-58K annually. Almost 150 excellent reviews. Booming market. View Post

🌄 $540K | Sevierville, TN: New 1BD + loft, 1.5BA cabin in Bluff Mountain Acres. Sleeps 6, 15-ft deck with hot tub. Near Dollywood and Smoky Mountains. June completion. View Post

🎣 $550K | Bull Shoals, AR: 3BD, 2BA waterfront home on White River. Private stairs to river, community boat launch, gated area. Sleeps 9, successful STR. View Post

🏡 $585K | Asheville, NC: 3BD, 3BA Arts and Crafts-style home with 2BD main house + studio apartment. STR-ready, fully furnished. Spa-like primary suite, 0.27 acres. View Post

🎢 $589K | Davenport, FL: 5BD, 5BA turnkey STR near Orlando. Sleeps 12, fully furnished. Strong performance in a prime location. View Post

🌵 $650K | Tucson, AZ: 3BD + den, 2BA turnkey STR in Casa Adobes. Heated diving pool, fenced yard, workshop with casita potential. Sleeps 8. No HOA. Fully furnished. View Post

🦅 $650K | Town of Rome, WI: Proven STR grossing $115K (2024), projected $130K (2025). 3BD, deeded Lake Petenwell access, 5 mi from Sand Valley Golf Resort. Fully furnished turnkey. View Post

🚤 $755K | Granbury, TX: 4BD, 3BA, 2561 sqft lakefront home on 0.29 acres. Remodeled with stunning lake views, covered dock, boat lift. Successful STR. View Post

🏔️ $779K | Roan Mountain, TN: 5BD, 4BA cabin on 3 acres bordering Doe River. Grosses $60K/year (AirDNA). Updated throughout, new hot tub, and stunning mountain views. View Post

🌟 $849K | Dripping Springs, TX: Turnkey 4BD, 3BA (2219 sqft) STR with detached guest apartment. Plunge pool, fire pit, game room. $110K+ annual revenue. Fully furnished. View Post

🏔️ $895K | Blue Ridge Parkway, NC: 4BD, 4BA on 1 acre with 3 rental units grossing $150K annually. Includes decks, hot tubs, and rustic-modern charm. Near Blue Ridge Parkway. View Post

🌲 $949K | Scandia, MN: 4BD, 3BA, 3200 sqft custom cedar home on 11.82 acres. STR grossed $126K (2024) with upside potential. Sauna, theater room, turnkey, fully furnished. View Post

🚤 $970K | Santa Rosa Beach, FL: 2BD + bunk alcove, 2.5BA on a coastal dune lake with private dock and boat lift. Renovated, $73K rental revenue (2024). Walk to shops/beach. View Post

🌅 $985K | Bradenton, FL: 4BD, 3BA bayside home with Sarasota Bay views. Heated pool, bookings through April 2025. $120K+ rental potential. No HOA. View Post

🏈 $999K | McArthur, OH: 1st-year STR on 5 acres in Hocking Hills. Grossed $58K in 8 months. Room for expansion. Unique design featured in Levi Kelly video. View Post

🌊 $1.450M | Outer Banks, NC: 8BD, 10BA semi-oceanfront STR. Grossed $120K+ last season. Sleeps 20, 4400 sqft, elevator, new HVAC, Trex decking, and more. View Post

🐻 $1.45M | Pigeon Forge, TN: 3 fully renovated cabins near downtown. Combined 9BD, 6BA, gross $250K+ annually. High-end furnishings. 5 min to Pigeon Forge, 10 min to Gatlinburg. View Post

🏔️ $1.6M | Flagstaff, AZ: Lakefront 6,591 sqft estate on 1.86 acres. Includes 4BD main home, 1BD apartment, 2BD cottage. 7BD, 6.5BA total, 4-car garage. ARV $2.5M. View Post

🏖️ $1.6M | Manasota Key, FL: Fully remodeled 4BD, 4BA quadplex with private beach access. No rental restrictions, Airbnb/VRBO Superhost status. Turnkey STR. View Post

From One STR to a Six-Figure Portfolio in 18 Months!

Scaling your short-term rental portfolio doesn’t happen by chance. It happens with smart financing—and the right STR lending partner.

“I started with one property and grew to five in 18 months,” says Sarah M. “Host Financial saw the potential banks missed. Now my portfolio generates six figures annually.”

Here’s how you can do it too:

  • Partner with a lender who specializes in STR investor loans.

  • Access multiple loans options that are based on the STR income.

  • Close quickly and start earning.

  • Your pre-approval process can start in the next 60 seconds.

Your journey in real estate investing starts with a finding good lending partner who specializes in investor and STR loans. Get started today.

Vacation Home Price Corrections and Opportunities

By Andy Thoms, Founder of STR Scout

Many vacation home market are undergoing adjustments, marked by price corrections, rising inventory, and shifting demand patterns. Below we analyze some of the top STR vacation markets, highlighting trends and potential investment opportunities on the horizon.

Vacation Rental Markets See Price Declines of 6%-15% From 2022 Peaks

Rising interest rates, escalating ownership costs, tighter access to cash for down payments, broader economic headwinds, and a normalization following the pandemic-era boom have collectively pushed prices down in several top vacation rental markets. Updated metrics for key destinations reveal the scale of these shifts:

City

Peak Value

Now

Value Decline

DOM in 2024

DOM YoY Change

Destin, FL

$750K

$690K

-8%

91 days

+26.8%

Tahoe, CA

$1.1M

$1.02M

-8.2%

80 days

+18%

Gulf Shores, AL

$500K

$465K

-7%

119 days

+98.3%

Cape Cod, MA

$800K

$745K

-6.9%

85 days

+28%

Kissimmee, FL

$380K

$356K

-6.3%

70 days

+12%

Big Bear, CA

$650K

$610K

-6.2%

85 days

+25%

Branson, MO

$400K

$370K

-7.5%

90 days

+30%

Outer Banks, NC

$600K

$555K

-7.5%

85 days

+28%

Asheville, NC

$480K

$450K

-6.3%

65 days

+20%

Myrtle Beach, SC

$450K

$420K

-6.7%

70 days

+15%

Supply-Demand Dynamics: Vacation Rental Markets Face Rising Inventory and Lengthening Days on Market

Market conditions in some of the most popular vacation rental destinations are shifting, offering buyers more leverage. Rising inventory levels and increasing Days on Market (DOM) suggest a softening in demand, as economic headwinds and higher costs reshape the real estate landscape. Key markets like Gulf Shores, AL, and Big Bear, CA, have seen some of the steepest year-over-year increases in inventory and DOM, signaling evolving supply-demand dynamics.

Market Highlights:

  • Inventory Trends: Inventory levels have increased significantly across these destinations, with Branson, MO, and Outer Banks, NC, experiencing the sharpest year-over-year growth, up 25% and 22%, respectively.

  • Days on Market: Extended DOM reflects reduced urgency among buyers. Gulf Shores, AL, now averages 119 days, a 16% YoY increase, while Tahoe, CA, averages 80 days, up 12%.

Below is a detailed breakdown of inventory metrics for December 2024:

City

Inventory (Dec 2024)

YoY Change

Destin, FL

900

+15%

Tahoe, CA

1,200

+12%

Gulf Shores, AL

850

+16%

Cape Cod, MA

1,100

+15%

Kissimmee, FL

1,050

+10%

Big Bear, CA

800

+20%

Branson, MO

700

+25%

Outer Banks, NC

750

+22%

Asheville, NC

950

+18%

Myrtle Beach, SC

1,000

+14%

Market Forces at Play

Several factors are shaping current vacation market conditions:

  1. Rising Interest Rates: Mortgage rates for second homes are hovering around 7%-7.5%, affecting affordability, especially in luxury markets like Tahoe and Cape Cod.

  2. Post-Pandemic Adjustment: Markets that surged in 2020-2022 are now seeing natural corrections, creating more sustainable valuations.

  3. Supply Chain Recovery: Stabilized material costs and improved inventory availability are contributing to rising supply.

  4. Regulatory Shifts: Markets like Outer Banks and Big Bear are enacting stricter STR (short-term rental) regulations, influencing demand and profitability.

  5. Tighter Liquidity: Reduced access to tap home equity and get cash out is limiting buying power for cash deals and down payments.

Vacation Rental Markets to Watch

1. Destin, Florida

  • Market Insights:

    • Price Correction: -8% from 2022 peak.

    • DOM: 91 days (+26.8% YoY).

    • Investment Appeal: Strong STR performance with 72% average occupancy rates.

2. Gulf Shores, Alabama

  • Market Insights:

    • Price Correction: -7%.

    • DOM: 119 days (+98.3% YoY).

    • Investment Appeal: High tourism demand, with Gulf Coast visitation up 12% annually.

3. Branson, Missouri

  • Market Insights:

    • Price Correction: -7.5%.

    • DOM: 90 days (+30% YoY).

    • Investment Appeal: Affordable entry points and growing STR demand from Midwest travelers.

4. Outer Banks, North Carolina

  • Market Insights:

    • Price Correction: -7.5%.

    • DOM: 85 days (+28% YoY).

    • Investment Appeal: Seasonal STR opportunities with consistent summer demand.

5. Cape Cod, Massachusetts

  • Market Insights:

    • Price Correction: -6.9%.

    • DOM: 85 days (+28% YoY).

    • Investment Appeal: Iconic destination with high demand for vacation rentals.

Looking Ahead

The vacation home market offers a blend of challenges and opportunities as corrections continue. Investors who understand market-specific real estate trends and regulatory landscapes will be best positioned to find the best risk-adjusted deals in 2025. Prioritizing destinations with strong tourism fundamentals and year-round rental demand is key to navigating this evolving market.

A Thought for Members:

While the market hasn’t fully transitioned to a buyer’s paradise, growing cracks in many markets are revealing emerging opportunities. In 2025, our STR investment and lifestyle travel scouting efforts will deliver on-the-ground insights, trusted local resources, and a deeper understanding of key markets. With the right tools and market intelligence, we’ll help you navigate evolving conditions and uncover destinations where value is starting to take shape.

About

Andy Thoms, founder of STR Scout, is a seasoned real estate investor and retired mortgage executive who scouts globally to help real estate investors and travel enthusiasts uncover destinations offering opportunities for short-term rental ownership, extended stays, and elevated living experiences, enabling them to live their best life through travel and investment.

🏡 Airbnb's Viral TikTok Stars Inspire New Travel Trends. Airbnb has revealed its most viral listings on TikTok, showcasing a mix of jaw-dropping designs and unique stays that cater to the growing desire for Instagram-worthy experiences. As these properties draw millions of views, the platform continues to influence how travelers choose their next getaway, blending entertainment with hospitality. Airbnb

🏖️ New Braunfels Upholds Short-Term Rental Ban Amid Industry Pushback. A Texas court upheld New Braunfels’ ban on short-term rentals in residential neighborhoods, affirming local governments' rights to regulate platforms like Airbnb and Vrbo. The decision highlights ongoing tension between homeowners, renters, and cities grappling with balancing tourism with community stability. court upheld

📋 Austin Tightens Short-Term Rental Regulations. New policies in Austin, Texas, are cracking down on short-term rental operators, requiring stricter registration, tax compliance, and enforcement measures for platforms like Airbnb. These changes aim to address community concerns about housing shortages and the impact of rentals on neighborhoods. Austin's policies

🌟 The Skift Short-Term Rental Awards Celebrate Innovation. Industry leaders gathered to honor standout short-term rental operators, from creatively designed properties to best-in-class guest experiences. The awards spotlighted how the rental industry is evolving to meet changing traveler expectations while delivering high-quality stays. rental operators

🏘️ Investor Sentiment Plummets as Rents Drop and Rates Rise. As interest rates remain high and rental income stagnates, investors in short-term and long-term rentals are rethinking strategies. Declining demand in oversaturated markets is pushing property owners to reevaluate the future of their investments. investor sentiment

🏠 Affordable Beach Houses Remain a Dream for 2025 Buyers. Locations like the Carolinas and Florida's Gulf Coast are emerging as hotspots for budget-conscious buyers looking for coastal properties. While some areas maintain affordability, experts warn that increasing demand could push prices up in the near future. beach houses

💡 Peter Schiff Warns of a Financial Tsunami in Real Estate. Noted economist Peter Schiff is cautioning investors about an impending downturn in real estate, citing rising mortgage rates and the unsustainable growth of the housing market. He predicts a significant correction, with steep declines expected in over-leveraged markets. Peter Schiff

📉 Big Cities See Double-Digit Housing Price Declines. Major metros like San Francisco, Seattle, and Austin have experienced price drops of 9–21% from their peaks, driven by affordability concerns and high mortgage rates. These declines are reshaping housing trends as buyers flock to more affordable regions. price drops

🌆 Florida's Housing Market Faces Widespread Declines. A new bill could exacerbate price drops across Florida as homeowners grapple with stricter insurance requirements and reduced buyer demand. The state’s housing market, once a haven for out-of-state investors, is now facing significant challenges. price drops

🏡 Construction Ends 2024 Strong Despite Market Headwinds. New construction activity saw surprising growth, with builders finishing the year on a high note amid a challenging housing market. Lower material costs and rising demand for new homes helped offset concerns about economic uncertainty. new construction

🌎 Costa Ricans Protest Gentrification in Tourist Hotspots. Residents in Costa Rica are rallying against foreign buyers transforming local communities into exclusive vacation destinations. Activists argue that this trend is driving up property prices and displacing longtime residents, sparking heated debates about sustainable tourism. protest gentrification

🇪🇸 Spain’s Tax Plan for Foreign Homeowners Sparks Controversy. A proposed property tax doubling for foreign homeowners in Spain has economists worried about its impact on tourism and investment. Critics argue that the policy could backfire, deterring international buyers and slowing the real estate market. property tax

⛷️ Vail Resorts Profits Soar Despite Decline in Skier Visits. Legal challenges and fewer skier visits didn’t stop Vail Resorts from posting strong profits, thanks to increased pricing and cost-cutting measures. The company’s performance underscores how luxury ski destinations are leaning into high-spending travelers to offset declining volumes. Vail Resorts

📊 Boomer Wealth Transfer Shapes Rust Belt Housing Market. Rust Belt cities like Cleveland and Detroit are benefiting from generational wealth transfers as younger buyers use inherited assets to purchase affordable homes. This trend is reviving demand in markets once plagued by economic stagnation. Boomer wealth

🌪️ Home Insurance Crisis Hits Colorado and California Hard. A wave of non-renewals in wildfire-prone states is leaving homeowners scrambling for coverage. States like Colorado and California are enacting sweeping mandates to stabilize the insurance market, but relief for affected residents remains uncertain. insurance crisis

✈️ Loreto, Mexico, Touted as a Hidden Gem for Vacation Homes. The quiet seaside town of Loreto is gaining recognition for its charming atmosphere and affordable real estate, making it an emerging hotspot for vacation property buyers. With pristine beaches and a slower pace of life, it’s an appealing alternative to Mexico's more crowded tourist hubs. Loreto

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