Rather than spending their vacations in a hotel or a rental apartment, more and more people are opting to buy a second house near their preferred vacation destination. Moreover, national statistics show that in 2021, there was a dramatic increase in the demand for second houses. The number of people applying for second home mortgages this past autumn was much higher than at the same time last year. That said, more than 80,000 residences in Virginia are considered vacation homes. The United States Census Bureau considers these homes “unoccupied for seasonal, recreational, or occasional usage.” For this reason, today, we will go over the top 5 vacation home markets in Virginia.
1. Lynchburg
If you want to purchase a property in Virginia, you should first consider Lynchburg. Lynchburg is in the center of the state to the east of the Blue Ridge Mountains and is one of the best vacation home markets in Virginia. What makes this market so appealing is its inexpensive housing. With an estimated population of over 80,000, Lynchburg is far from being a small town. That said, the economy is thriving, and the cost of living is just right, making this an ideal market. Lynchburg’s typical house value of $256,000 is slightly below the state average, making it a reasonable investment without losing the quality of life for renters.
To top it all off, Lynchburg is home to some of the state’s most excellent public and private educational institutions. Because of the perennial stream of new students, there will always be a need for secure, reasonably priced accommodation. If you decide to skip a vacation, you can make some passive income by renting your home out. Due to its high appreciation rate, stable economy, and expanding population, Lynchburg should be one of the finest areas to purchase a vacation home in Virginia for the foreseeable future.
2. Bristol
Half of Bristol is in Tennessee, so it may not be on many people’s radar as a desirable real estate market in Virginia. However, Bristol is still one of the best vacation home markets in Virginia. It has a healthy market for real estate buyers and sellers who want to escape the expensive coastal areas. Regarding the city’s population, only 17,000 people live in Virginia, while the neighboring state of Tennessee is home to another 27,000.
In addition, Bristol is showing promising indications of development, with a year-over-year home price increase of over 16%. The typical renter spends approximately 17% of their monthly salary on rent. That means you shouldn’t have any issues finding renters if you choose to do that. Bristol is a promising market for prospective investors because of its affordable house prices and beautiful atmosphere. This market is tiny and underappreciated, so you may expect to discover excellent homes with considerably less competition.
3. Richmond
In Richmond, you will find one of the hottest real estate markets in Virginia. Richmond is one of the major cities in Virginia, with a population of 229,000. However, if you consider the metro surrounding metro region, Richmond has a population of close to one million. That’s good news for anyone looking to invest in real estate. Furthermore, if you buy a vacation home in Virginia, you can move here at any time and experience all advantages Virginia’s largest city has to offer. Furthermore, you should expect the rents to grow more than 15% in local markets throughout 2023 alone.
Additionally, Richmond has a cost of living that is 4% lower than the U.S. average and 6% lower than the average of Virginia. Richmond has a diversified economy with many work prospects in all major employment categories thanks to its government offices, Virginia Museum of Fine Arts, ten educational institutions, and HCA Virginia Health System. Also, approximately a third of Richmond’s citizens are millennials. Since they prefer renting to buying, demand for rental housing should remain strong.
4. Blacksburg
Investing in a vacation home in Blacksburg, Virginia, is one of the better options available in the state. Considering that Virginia Tech has over 30,000 students, the town’s population of just over 44,000 makes perfect sense as a college town. People come to this region mostly because of the university’s significant cultural and economic impact. Although Blacksburg’s median house price is somewhat lower than the state average, and its appreciation rate is above average at 11.5%, the market is not exactly booming. Thus, rather than focusing on the value of their investment increasing, investors here should seek stable returns via rental income.
Blacksburg’s rent-to-mortgage ratio is relatively favorable, at 70%, compared to other towns of a similar size in the United States. The ratio indicates that residences with lower prices often generate more cash flow. Real estate in this region has a reasonable price and is appreciating. However, you can make the biggest profits by renting your residence to the thousands of students needing short- to medium-term accommodation.
5. Charlottesville
Charlottesville, a minor community in northern Virginia with around 47,000 residents, is famous for being the entrance to Shenandoah National Park. This city has the lowest rent compared to a mortgage of any major city in Virginia. But not only that, it accomplishes this while having a higher median property price than the rest of the state. The explanation is obvious: many individuals strongly desire to reside in Charlottesville and are ready to pay a high price.
Charlottesville is not a good market to invest in if you want to sell your home in a few years, retire, and live well off the proceeds. However, here is the place to be if you’re looking for a quality rental property that will appreciate and provide a steady income stream or a place to use as your vacation home. That makes Charlottesville one of the top 5 vacation home markets in Virginia. Unfortunately, Charlottesville has a high price tag. If you’re interested in this market, you’d better be prepared to pay a lot of money or put in a lot of effort fixing up a fixer-upper.
Meta description: If you are looking to buy a vacation home somewhere lovely, today we will be talking about the top 5 vacation home markets in Virginia.
Keyword: Vacation home markets in Virginia.
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