Travel shifted dramatically during the pandemic—families moved, remote work took over, and demand for vacation homes surged. Now, in 2025, the major buzz has cooled, but smart buyers are still finding great post Covid vacation US real estate opportunities where holiday home demand remains strong.
1. The Big Picture: What’s Changed Since Covid
- Second-home mortgages are down to their lowest level since 2018, with just ~86,600 taken out in 2024—a clear sign that Americans are hitting pause on vacation home buying.
- Demand fell due to rising mortgage costs, insurance premiums (especially in flood zones), and less time spent in vacation homes thanks to returns to office work.
- Worldwide, short-term rentals have rebounded to pre-pandemic levels, though growth has moderated .
- Property managers expect modest gains in occupancy and revenue, though increased competition and economic uncertainty are top concerns.
2. Why Vacation Homes Still Matter
- 📣 Niche appeal: “Workcations” and hybrid travelers value homes with strong Wi-Fi, dedicated workspaces, and flexibility.
- 💰 Cash buyers lead: In luxury markets like Florida, nearly half of buyers now pay cash, less impacted by mortgage rates.
- 🌎 Foreign interest returns: U.S. homes drew $56 billion in foreign investment over the past year—Florida alone took in 21% of that.
3. Top Post‑Pandemic Vacation Home Markets
🏖️ Florida – Gulf and Emerald Coasts
- Though overall second-home demand in Florida dropped sharply, high-net-worth investors are fueling luxury developments like Galveston, Texas nearby—hinting at similar Florida pockets.
- Luxury hotspots like Palm Beach and Naples are booming, thanks in part to private jet access—buyers pay premium for convenience and exclusivity.
🌅 Carolina Coast & Mountain Escapes
- North Myrtle Beach, SC: 8.1% cap rate, ~$360K median price, seaside condos with pools and beach access.
- Dauphin Island, AL: Scenic barrier island, 8% cap, strong family booking rates.
- Hatteras Island, NC: 7.3% cap, longer stays with serene coastal vibes.
- Cape May County, NJ: Over 150% second-home ratio, Victorian charm near NYC/Philly.
🏔️ Inland Mountain Retreats
- Girdwood, AK: 7.2% cap, ski lodging, prime slopeside real estate.
- Flagstaff/Coconino County, AZ: Outdoor lifestyle, co-ownership options popular post-pandemic.
🌿 Other Emerging Hotspots
- Rutland County, VT; Hot Springs, AR; Poconos, PA; San Antonio, TX — affordable selections with outdoor appeal, moderate risks .
4. Market Tips for Post‑Covid Buyers
- Assess true demand: Focus on markets with stable occupancy, strong average stay lengths, and “workcation” features .
- Factor in costs: Mountain and beach properties often carry higher insurance, maintenance, and HOA fees—budget accordingly.
- Track supply: Many markets report rising inventory—buyers should gain negotiation leverage .
- Vet regulations: Some localities are tightening short-rental rules—check zoning and rental caps before buying.
- Leverage pro help: Local property managers like Vacasa can forecast revenue, handle bookings, and navigate fines and compliance.
5. Case Study Snapshot
North Myrtle Beach, SC
- Median price: ~$360K
- Cap rate: ~8.1%
- Strong demand: beach access, pools, golf
- Competitive advantage: rising inventory gives buyers leverage.
6. What Lies Ahead
- STR market predicted to grow ~4.1% annually through 2029, bolstering rental income potential .
- Geopolitical shifts are affecting Canadian snowbirds—especially in Florida and Arizona—signalling softening demand in those regions .
- Mid-sized inland or suburban escape markets continue gaining traction as affordability moves inland.
7. Quick Decision Guide
| Question | Suggested Answer |
| Want luxury & ready buyers? | Choose Florida luxury pockets (Palm Beach, Naples) |
| Prefer beach and affordability? | Myrtle Beach, Hatteras, Dauphin Island |
| Love winter sports or nature? | Girdwood AK, Flagstaff AZ |
| Want low-cost, year-round stays? | Hot Springs AR, Poconos PA, San Antonio TX |
| Indifferent to vacation use? | Cape May NJ, inland mountain co-ownerships |
Final Takeaway
While holiday home demand cooled post-pandemic, properly selected post Covid vacation US real estate remains solid. Focus on properties with consistent rental appeal, good cap rates, and manageable ownership costs. Inland retreats, coastal gems, and co-ownership models continue to attract savvy buyers. Want help comparing local markets, crunching cap rates, or connecting with regional property managers? I can help.