This Florida Keys spot is one of the best places to buy a vacation home in the U.S.
If you’re in the market for a vacation home — we are not, but you may be — a new report says Key West is one of the best places to buy one.
Vacasa, a vacation rental management platform, just released 2020’s Top 25 Best Places to Buy a Vacation Home report, and Key West comes in at No. 19, dropping from last year’s ranking of No. 8.
To determine the rankings, Vacasa analyzed home sales data from the last year for U.S. vacation destinations and overlaid it with performance data for thousands of U.S. vacation rental properties. Vacasa then calculated the average cap rate — the rate of return expected on a real estate investment property — using averages of property taxes, utilities, homeowners association fees, insurance and property management fees.
Key West, which Vacasa praised for its beaches, history, bars and music, has a median home price of $653,343, according to the report, with an annual gross rental revenue of $66,015 and a cap rate of 5.8 percent.
Two other Florida cities made the top 25: Kissimmee was No. 14 with a median home price of $250,210, an annual gross rental revenue of 33,969 and a cap rate of 6.1 percent. Panama City Beach came in at No. 25, with a median home price of $290,157, annual gross rental revenue of $32,765 and a cap rate of five percent.
The No. 1 market for vacation homes is Big Sky, Montana, with a median home price of $541,842 and a cap rate of 9.2 percent.
Vacasa also reports that it expects all markets to rebound in the wake of the COVID-19 pandemic.
This waterfront Florida Keys spot was just named the best family resort in the U.S.
