Top 11 Affordable States for Vacation Home Ownership

1. Overview

A second home doesn’t need to come with a seven-figure price tag.

Interest in vacation homes reached a high point during the pandemic. Along with the desire for seclusion, working at home became a reality for millions, in addition to those already able to do their jobs remotely. According to the U.S. Census Bureau, households with someone working from home reported higher levels of income, placing them in a better position to purchase a second home.

Although demand has recently dropped with rising interest rates, many Americans are still seeking an escape from cold winters or hot summers, a place to gather for family vacations, or simply a change of scenery. For some, owning a second home provides an opportunity for income by renting it out on their own or through a homesharing company like Airbnb.

2. Affordability Factors

Affordability encompasses more than just the initial purchase price of the home. Utilities, maintenance, property taxes, and potential income for those who want to use their second home as an investment are all considerations in the decision of whether a property is affordable. Moreover, affordability varies according to income, financial commitments, and stage in life.

3. Affordable States for Second Homes

While prices vary widely by city and location, here are some of the most affordable states to own a second home:

Florida

One of the country’s favorite vacation destinations, Florida’s real estate ranges from multimillion-dollar single-family homes and townhouses to properties in more affordable communities. In Jacksonville, vacation home buyers can choose from oceanfront, lakeside, inland waterway, or golf course properties in a relatively affordable price range, with condos starting around $200,000 and homes under $400,000. Realtor.com estimates the median Jacksonville home price at $314,000.

Texas

Vacation home buyers seeking a waterfront location can find reasonably priced properties along the Texas Gulf of Mexico shore from about $200,000 for a condo and approximately $350,000 for a home. In Port Arthur, on the border with Louisiana, a four-bedroom lakefront home is listed for $254,000.

North Carolina

This state offers geographical diversity and natural beauty from mountains to coastline. The mountain areas around Asheville are popular vacation home destinations with pristine views and convenient access to both the city and the wilderness. Homes in this sought-after area start around $500,000, while coastal property in Emerald Isle, described as a family destination with a 12-mile beach, has condos starting around $250,000.

Michigan

Swimming, boating, and fishing in summer or cross-country skiing in winter make a vacation home on the shores of Lake Michigan appealing. Homes in the city of Holland start at around $250,000, with lakefront properties commanding higher prices.

Idaho

Idaho Falls is a year-round vacation destination with a paved pathway along the Snake River. Outdoor activities abound, and homes start in the $300,000 range.

Arizona

Both weather and natural beauty attract visitors to Arizona. homes are available starting at around $250,000 in Tucson. Tempe offers a variety of homes and condos starting at around $350,000.

Pennsylvania

The Pocono Mountains are known for year-round activities. Cities like Stroudsburg and Jim Thorpe offer vacation homes starting around $250,000 to $300,000.

California

California offers a range of vacation properties to suit various tastes. Generally, homes in southern coastal towns like Oceanside start around $500,000, while options in mountain areas start at about $450,000 surrounded by unique natural beauty.

Mississippi

For beachfront properties, the Gulf Coast of Mississippi is an attractive option. In Biloxi, beachfront condos start around $350,000, and homes are in the $250,000 range.

New Hampshire

New Hampshire’s properties include coastal homes, with Hampton Beach homes starting at around $500,000.

New York

Long Island is known for its exclusive Hamptons and nearby areas like Greenport where homes are around $550,000. In the Adirondacks, homes start at approximately $350,000.