5 Best Places in Florida To Invest In a Vacation Home

Look at any top 10 list of vacation spots in the United States, and you’re bound to see at least two appearances from cities in Florida. It’s no wonder, then, that the state has seen a population boom since the pandemic, as many remote workers flocked to Florida to work from the beach.

Since the population increase, home prices have gone up, with the average home price in Florida just being just over $383,000. But, there are still a few cities where it’s relatively affordable to buy a vacation home. Here’s where experts recommend buying a vacation home in the Sunshine State.

• Average Home Price: $371,002

Melbourne has garnered more interest recently because of its location on the “Space Coast.” Peter Cranis, executive director at Florida Space Coast Office of Tourism, said with more activity with the space program, more people have been moving to the city to get a piece of the action.

“The most unique and fun thing to do [in Melbourne] is to catch a rocket launch from the beaches,” Cranis said. And, those beaches are nothing to sneeze at. Pretty much anything you want to do on the water, Melbourne beaches offer it. “You can do a guided nature kayak tour, easily allowing you to connect to wildlife and the environment. Or, you can even take up surfing lessons,” Cranis said.

• Average Home Price: $359,585

Palm Coast is a city on Florida’s northeast coast. It sits between Daytona Beach and St. Augustine. As you might expect from a coastal city, it offers beautiful beaches. Golfers will love Palm Coast as well since there are a few courses in the city. And, there are some gorgeous nature preserves to see as well.

Daned Kirkham, senior director of Real Estate at Vacasa, added that Palm Coast has a cap rate of 7.1%, which means a strong return on investment. “That will help offset costs when the home purchased is used as a short-term rental,” Kirkham said. 

• Average Home Cost: $357,584

Delray Beach was ranked one of the top 10 most beautiful beaches, according to a study done by Florida Rentals. In addition to low home prices and beautiful beaches, Delray offers quiet living, boutique shops and art galleries. It’s the perfect place for someone who loves to soak up the sun during the day and take it easy during the evenings. 

• Average Home Price: $351,432

South Florida’s real estate market has grown tremendously, according to Cedric Charles Teboul, a strategic real estate investing advisor at Real Estate Bees. Though you’ll spend a pretty penny to buy a home in Boca Raton or Fort Lauderdale, Teboul recommends the nearby city of Pompano Beach for a cheaper home that still offers the perks of the big cities.

“Pompano Beach offers a lot more potential for growth. Because it’s in between big cities, the prices are slowly climbing and will soon reach similar prices,” Teboul said. Pompano Beach is a 10-minute drive to the water, plus it offers plenty of places to golf, so you can slip right into relax mode without paying a crazy price. 

• Average Home Price: $256,550 

Known for the famous Daytona 500, Daytona Beach isn’t just home to the 500-mile-long NASCAR race. The city offers very affordable vacation real estate as well. The value of these homes increased by 10.7% since last year, according to Zillow, so almost anything you buy here is a savvy investment. Plus, you’ve got the beach on your side. Daytona Beach features a pier and a boardwalk that’s enjoyable for kids and adults alike.