These are the Best US Cities to Invest in a Vacation Rental
And the coast is heartily represented!
As if you needed another reason to run and out and buy that dream escape on the coast. A new study conducted by finder.com analyzed TripAdvisor’s 10 most popular US destinations and re-ranked them based on investment yield (median monthly rent vs. median home sales price).
According to the results, those looking to get the most bang for their rental property bucks should look no further than the Windy City.
For Sale in Chicago: Luxurious, Light-Filled Home by the Lake; $1,799,000
Chicago, while it came in as the seventh most popular vacation destination, earned the highest investment yield percentage and the top spot on the list. That’s because, according to median home prices, it costs considerably less to live among the Lake Michigan breezes than it does to snag a spot in San Francisco, for instance (which came up last in terms of investment yield).
Related: Tour Eight For-Sale Private Islands By Drone:
For Sale in Key West: Adorable, Nature-Wrapped Cottage; $879,000
Key West was another top performer, coming in at number three. While the adorable bungalows will set you back more than $500,000 on average, median monthly rents are quite high in comparison ($3,186), meaning a vacation rental will generate some serious cash flow and help offset a steeper sales price.
For Sale in San Diego: Luxuriously Updated SoCal Beach Bungalow; $799,999
Those looking to invest on the West Coast should check out San Diego, which came in at number five on the investment yield list. Compared to some of its ritzier California cousins, San Diego is relatively affordable ($646,977 median sales value) with rents teetering just below $3,000.
Hawaii, which dominates TripAdvisor’s list of most popular destinations with three islands making the top five, didn’t fare as well on the investment yield list. The Big Island is your best bet, though, which boasts some of the most affordable Hawaiian real estate (especially on the eastern side of the island, but expect slightly less rental traffic there, too).
Which of these destinations would you like to call your second home? Check out the full list below!
Top 10 US Vacation Destinations, Ranked by Investment Yield:
- Key West
- Las Vegas
- San Diego
- New York City
- Island of Hawaii
- San Francisco
Photos, from top: Meinzahn/Getty Images; PlanOmatic; Rocky Gonet/Courtesy of Island Homes Key West; Courtesy of Rancho Photos