Niagara Falls is located hundreds of miles from an ocean, but still tops this list of popular summer destinations
As spring and summer approach, investors are turning their attention to beach homes, hoping to capitalize on the wave of seasonal visitors booking Airbnb and other short-term rentals.
You might not think of beaches when it comes to Niagara Falls, but it’s at the top of AirDNA’s list of short-term rental (STR) beach investments.
Air DNA– a company that collects and analyzes data from VRBO and Airbnb – recently identified the top ten markets for beach and coastal homes.
“Strong demand for beaches alone does not necessarily translate into the best investment returns: in some coastal destinations, higher house prices can make it harder for rental incomes to keep pace, while more affordable markets with steady visitor demand often deliver higher returns,” Chloe Garlaschicommunications manager of AirDNA, says Realtor.com®.
“Proximity to the water also plays an important role in determining pricing, with homes close to the shoreline typically commanding higher nightly rates and stronger occupancy rates.”
To compile the rankings, AirDNA focused on returns, measuring the average sales potential of homes on the market by their sales prices. Simply put, the company analyzed how much income a property could generate relative to what it would cost to purchase.
“Interestingly, all of these cities on the list have an average list price below the national median. No South Beach or Malibu here,” says Joel Bernersenior economist at Realtor.com. “Affordability is a key feature here when it comes to ROI on a beachfront STR, and these beach towns offer a lower entry point than even the national housing stock in general.”
These are the top cities for owning a beach house, according to AirDNA, along with their annual revenue potential, average sales price and current yield.
“These are the average sales prices for the entire city, so expect true beachfront homes to be more expensive,” Berner says. “Immediate access to water is highly desirable for both owner-occupiers and STR guests, so these properties typically command a serious premium.”
Niagara Falls, NY
Ocean/Beach/Lake Attractions: Niagara River/Lake Ontario
Annual revenue potential: $29,000
Median list price: $125,000
Current return: 15.5%
“While Niagara Falls isn’t your typical beach destination, there’s no denying that access to water is the main attraction,” notes AirDNA’s chief economist. Jamie Lane.
“Niagara Falls State Park is the main driver, with signature experiences such as Cave of the Winds, Maid of the Mist and the Observation Tower supporting multi-night stays and peak season pricing. In addition to the falls, the region offers outdoor activities, wineries and tours that help convert day trips into longer stays and support shoulder season travel.”
Corpus Christi, Texas
Ocean/Beach/Lake Attractions: Gulf Coast beach and bay
Annual revenue potential: $43,000
Median list price: $289,945
Current return: 14.8%
“Corpus Christi is a Gulf Coast market that investors are gravitating toward for a simple reason: real beaches, real demand and real income, without the sky-high buy-in of many oceanfront destinations,” notes Lane. “The city is built around the Texas coastal lifestyle – sand, water sports, family-friendly attractions – and benefits from weekend drive accessibility for local Texas travelers.”
Port Arthur, Texas
Ocean/Beach/Lake Attractions: Gulf Coast Wetlands
Annual revenue potential: $35,000
Median list price: $152,300
Current yield: 14.4%
“Weekend travelers to Port Arthur are drawn to fishing and birdwatching around Sabine Lake, beach access at Sea Rim State Park and easy coastal getaways that appeal to families,” says Lane. “Cultural attractions, including the Museum of the Gulf Coast and the city’s Cajun-influenced food scene, help complete the stay and support repeat visits.”
Muskegon, MI
Ocean/Beach/Lake Attractions: Lake Michigan
Annual revenue potential: $40,000
Median list price: $229,900
Current return: 13.8%
“Much of the Lake Michigan shoreline in this region consists of conservation land or low-density housing, limiting the supply of waterfront homes for private ownership,” said Northern Michigan real estate agent. Sanders Scottstrategic real estate advisor Real estate beestells Realtor.com. “Where short-term rentals are permitted, that limited supply combined with strong summer tourism could result in high seasonal occupancy.”
Fort Walton Beach, FL
Ocean/beach/lake attractions: coastal tourism
Annual revenue potential: $47,000
Median list price: $382,450
Current yield: 13.4%
“Fort Walton Beach has a small town feel, and the beaches are close by and usually not overcrowded,” Susan Sharpebroker for EXIT Realty Anchor South in Fort Walton Beach, Realtor.com tells us. “The boardwalk on Okaloosa Island offers dining and shopping options, as well as live entertainment and fireworks. Destin is a short drive away.”
Salisbury, MD
Ocean/Beach/Lake Attractions: East Coast/Coastal Overflow
Annual revenue potential: $37,000
Median list price: $282,990
Current yield: 13.4%
Located on Maryland’s eastern coast, Salisbury combines small-town charm with easy access to the Atlantic coastline. Located approximately 30 miles from Ocean City, the area attracts buyers and visitors looking for more affordable housing while still being close to the boardwalk and beaches.
West Pensacola, FL
Ocean/Beach/Lake Attractions: Gulf Coast Beaches
Annual revenue potential: $32,000
Median list price: $310,000
Current yield: 13.3%
West Pensacola, FL, is located just minutes from Pensacola Beach, making it an attractive spot for buyers who want coastal access without beachfront prices. The area attracts visitors who enjoy boating and fishing, with nearby destinations such as Perdido Key adding to the region’s beach appeal.
“West Pensacola appeals to buyers who want to live close to the Gulf Coast without paying the higher prices seen in some other coastal markets,” said broker and investor. Ron Myers by Ron buys houses in Florida tells Realtor.com.
Daphne, AL
Ocean/Beach/Lake Attractions: Gulf Coast System
Annual revenue potential: $58,000
Median list price: $389,100
Current yield: 13.3%
Located less than 20 minutes from Mobile, AL, this relaxing coastal community offers easy access to waterfront recreation along Mobile Bay. Although the area is not directly on the Gulf, visitors enjoy scenic bay views and a coastal lifestyle that focuses more on bayside relaxation than traditional beachside living.
Port Richey, FL
Ocean/Beach/Lake Attractions: Gulf Coast lifestyle with boating and fishing
Annual revenue potential: $36,000
Median list price: $249,900
Current yield: 12.9%
Port Richey, Florida, is a small Gulf Coast community where visitors enjoy boating and fishing. The area offers a more relaxed beach lifestyle while still being close to Pasco County’s shoreline parks and marina access.
“Port Richey stands out because it is more affordable,” Myers says. “It’s the kind of place where buyers feel like they can still get more bang for their buck compared to some of the more expensive areas in Florida.”
Michigan City, IN
Ocean/Beach/Lake Attractions: Lakeside tourism at Indiana Dunes
Annual revenue potential: $43,000
Median list price: $352,400
Current yield: 12.3%
Michigan City, IN, is a popular shoreline on Lake Michigan known for its sandy beaches and marina access. Berner notes that Michigan City’s average listing price rose 67.1% year over year, even up 18.5% over the same period. “Word is getting around about this seaside town and it has created a hot local housing market,” he says.
