Top 7 Florida Destinations for Vacation Home Buyers

With 1,350 miles of beautiful coastline and sunny weather most of the year, it should come as no surprise that Florida’s real estate market is among the top-performing in the country. Furthermore, since many individuals continue to work remotely as a result of the Covid-19 pandemic, the Sunshine State has become a particularly attractive place to invest in real estate.

“I would describe Florida’s real estate market right now as hot, just like our weather,” said Dina Goldentayer, executive director of sales with Douglas Elliman in Florida. “There is very low inventory and very high demand.”

Goldentayer explained that while this does not necessarily lead to bidding wars, prospective buyers should be prepared to “act quickly and to not think that something would still be available when they return to town a few months later.”

According to a market report for Florida’s East Coast by One Sotheby’s International Realty, median single-family home prices have reached a record high, with over a quarter of all sales (houses and condos) currently selling above the listing price.

Most buyers seeking a vacation home in Florida are interested in properties located in luxury buildings that boast high-end amenities and proximity to restaurants and sporting events. “And views of the ocean,” said Goldentayer. “You can never tire of looking at those.”

If you are contemplating investing in a vacation home in Florida, here are the top towns, cities, and destinations worth targeting.

Miami Beach

As the most international destination in South Florida and home to some of the country’s best hotels and resorts, restaurants, beaches, shops, and entertainment, Miami Beach stands out as the ultimate vacation spot. Consequently, the city’s real estate market reflects this demand. Construction is booming in the area with developments such as 57 Ocean Miami Beach, Ten30 South Beach, Monaco Yacht Club & Residences, and Monad Terrace making their debut. Given that the region is attracting an unprecedented number of visitors, even if you don’t end up spending much time in your new Miami Beach property, the rental potential is substantial.

Palm Beach

Palm Beach’s exclusive and glamorous lifestyle attracts buyers looking to embrace its world-class shopping and pristine beaches in a serene environment. The city’s real estate market, where many of the country’s wealthiest individuals own properties, is exceedingly competitive right now.

In early 2021, sales across all housing types in Palm Beach surged, setting an all-time record, according to a report from Palm Beach Daily News. During the first quarter of 2021, sales exploded to more than $1.2 billion compared to $398 million for the same period in 2020, although recent reports suggest the housing market is showing signs of slowing once again.

Fort Lauderdale

Known as the boating capital of South Florida, Fort Lauderdale is an ideal destination for those who enjoy sailing trips. The city’s numerous canals, sunny beaches—seven miles of them!—and vibrant art scene are why many seek vacation properties here. In September 2022, the average sale price for a single-family home in Fort Lauderdale rose four percent over September 2021, with 27% of homes selling above the listing price. Therefore, expect to invest significantly if you wish to make Fort Lauderdale your permanent vacation spot.

St. Augustine

For history enthusiasts, the oldest city in the U.S. offers a wealth of attractions. From its stunning Gilded Age architectural masterpieces to charming cobblestone streets and eclectic shops, St. Augustine never disappoints. Although the city is relatively affordable, the real estate market is highly competitive, with some properties being snapped up within 24 hours. In fact, St. Augustine boasts one of the fastest growing markets in Florida, assuring that your investment is likely to yield positive returns.

Pompano Beach

Nestled just north of Fort Lauderdale, this former sleepy beach town is rapidly emerging on the luxury real estate market in South Florida. With new developments like the oceanfront Solemar and its sister property Casamar, offering residences with unobstructed ocean views at more affordable rates than those in Miami or Fort Lauderdale, Pompano Beach represents a solid long-term investment. The city has invested millions in rehabilitating its beachfront, introducing a new fishing pier and a 663-spot pier parking garage. By 2025, Pompano Beach’s innovative downtown district will emerge, fostering a vibrant, pedestrian-friendly environment.

Tampa

Let’s be clear—Tampa has been a popular destination long before Tom Brady joined the Tampa Bay Buccaneers. The city’s theme parks, such as Busch Gardens Tampa Bay and Adventure Island, waterfront entertainment, diverse culinary scene, and vibrant cultural atmosphere have historically attracted families for vacation. Furthermore, in 2020, Tampa was ranked among the top 10 fastest-growing cities in the U.S., a testament to its allure. Currently, the Tampa Bay area is witnessing $13 billion worth of new developments and improvements, including the launch of The Ritz-Carlton Residences, The Residences at the Tampa EDITION, and a $400 million renovation of the Westshore Marina District, which will include several new condo buildings, townhouses, and restaurants.

Naples

Despite sustaining damage from Hurricane Ian in September 2022, the family-friendly city of Naples is making a comeback. Many local hotels, restaurants, and attractions have since reopened, reaffirming its reputation for laid-back luxury alongside great beaches and numerous golf courses. This resilient city ranks among the most luxurious communities along the Gulf Coast and is home to many opulent beachfront mansions. Notably, the iconic Naples Beach Club is undergoing a transformation into a Four Seasons hotel and residences property, enhancing the area’s appeal and real estate value.