Best Vacation Home Locations in the US for 2025: Market Trends & Top Picks

Why 2025 Is a Landmark Year for Vacation Home Investing

Vacation home investing in the US is experiencing a new wave of momentum in 2025. With shifting travel behaviors, evolving guest expectations, and emerging market data, choosing the best vacation home locations US has never been more exciting—or more critical. Whether you’re a first-time investor or expanding your lifestyle assets, knowing where to look is the first step toward achieving both lifestyle enjoyment and strong financial returns.

Current Vacation Home Market Trends in the US

2025 is seeing a surge in demand for vacation homes that balance accessibility, natural beauty, and amenities. Travelers are prioritizing domestic, drivable destinations, and markets with a blend of year-round appeal and strong local attractions. Investors are increasingly seeking out areas with a track record of high occupancy, solid nightly rates, and room for upside—not just the most popular tourist spots but also emerging pockets of opportunity.

What Makes a Great Vacation Home Location?

• Steady Year-Round Demand: Markets that attract visitors in all seasons outperform those with a single short peak season.
• Accessibility: Proximity to major cities or airports increases booking rates and keeps turnover high.
• Unique Attractions: From natural parks to vibrant downtowns, the reasons guests flock to an area matter for your property’s success.
• Healthy Local Regulations: Investor-friendly zoning and short-term rental policies support long-term business viability.

Your own interests matter too. At Vodyssey, we always recommend starting with locations you’d love to visit—because guest experience is best when you enjoy and understand your market.

The Best Vacation Home Locations in the US for 2025

Let’s break down the top-performing and most promising vacation home markets across three key price brackets, based on proprietary data and expert analysis.

Under $350K: Affordable Entry Points

• Auburn, AL: Vibrant college town energy, sports-driven tourism, and Chewacla State Park keep bookings steady year-round.
  Average home price: $350K; Projected annual gross revenue: $41,130.50
• Lexington, KY: Known for horse farms, bourbon trails, and a lively arts scene, this market offers high occupancy and appeal to a diverse guest base.
  Average home price: $300K; Projected annual gross revenue: $49,788.36
• Columbia, SC & Gainesville, FL: Both cities combine university-driven demand with strong local attractions, keeping occupancy and rates healthy for investors.

$350K–$600K: Mid-Range Markets with Big Upside

• Beech Mountain, NC: The highest town in Eastern America, featuring year-round outdoor recreation, winter sports, and scenic views.
  Average home price: $550K; Projected annual gross revenue: $54,559.59
• Asheville, NC: Famous for its arts culture, historic sites, and Blue Ridge Parkway adventures—high occupancy and a thriving food & craft beer scene.
  Average home price: $550K; Projected annual gross revenue: $58,391.14
• Traverse City, MI: Beloved for its lakefront beauty, wineries, cherry orchards, and access to Sleeping Bear Dunes.
  Average home price: $550K; Projected annual gross revenue: $77,270.20

$600K and Up: Premium Destinations with Exceptional Returns

• Fredericksburg, TX: Texas Hill Country charm, renowned wineries, and historic downtown energy.
  Average home price: $600K; Projected annual gross revenue: $77,637.22
• Stowe, VT: A quintessential New England ski village with year-round hiking and scenic appeal.
  Average home price: $700K; Projected annual gross revenue: $90,081.86
• Flagstaff, AZ: Four-season destination with access to the Grand Canyon, skiing, and a vibrant local scene.
  Average home price: $700K; Projected annual gross revenue: $78,134.58
• Bonus: Gatlinburg, TN: Gateway to the Smoky Mountains, this market remains a rental powerhouse.
  Average home price: $1M (5BR); Projected annual gross revenue: $163,345.60

Case Study: Identifying Pockets of Opportunity

Success in vacation home investing is about more than picking a city off a list. The top 10% of properties in any market consistently outperform the rest. Case studies from Vodyssey members show that even in well-known or saturated markets, you can find high-performing assets by focusing on distinctive guest experiences, smart property selection, and leveraging data-driven analysis. For example, operating near top attractions, ensuring properties have unique amenities, and understanding local demand cycles can set your investment apart.

Choosing Your Best Location: Practical Steps

1. Define Your Goals: Are you prioritizing cash flow, long-term appreciation, or a lifestyle getaway for your own use?
2. Profile Your Ideal Guest: Do they seek adventure, relaxation, family time, or cultural attractions?
3. Analyze Data, Not Hype: Use tools like AirDNA, and partner with experts who know how to spot true opportunity pockets.
4. Visit and Experience the Area: There is no substitute for understanding what makes a location special by being there yourself.

Remember, what matters most is not chasing someone else’s top market, but matching the best vacation home locations US to your unique goals and vision.

Conclusion: Take the Next Step Toward Lifestyle and Financial Freedom

2025 offers unprecedented opportunity to invest in vacation home markets that bring together profitability, personal enjoyment, and long-term growth. By understanding trends, applying market data, and aligning your investment with your lifestyle desires, you can confidently select the right market for your next vacation property.

Ready to discover your perfect market and unlock the next phase of your lifestyle and financial journey? Schedule a call with our team today and get access to expert guidance, pre-vetted deals, and powerful tools to help you win in the vacation home market.