This Coastal New Jersey Town Was Named the No. 1 Luxury Vacation Home Market in the U.S.

Pacaso, the second-home co-ownership marketplace, recently released its annual ranking of the best second-home destinations in 2024, and the winner is neither the Hamptons nor a wealthy enclave in Southern Florida. Instead, it is in New Jersey. Specifically, Cape May on the Jersey Shore.

“As the southernmost county in New Jersey, Cape May is a beloved destination for residents of metropolitan areas like Philadelphia and New York City, offering iconic beach towns such as Ocean City and Avalon,” the report reads. 

The region is the quintessential vacation destination with over 150 percent ratio in second-home-to-primary-home residences. However, buying a home here doesn't come cheap. The average home value for 2024 was $1,098,630, according to Pacaso.

The company points out that Cape May was outside the top 20 markets last year, but home buyers have come to appreciate its over 30 miles of white sand beaches over the previous 12 months. The area is nestled between the Atlantic Ocean on the east and the Delaware Bay to the west and has been the go-to vacation spot for generations of Americans.

The region's towns are rooted in history. It was first inhabited by the Kechemeche Indians of the Lenni-Lenape Nation before English colonialists transformed it into a whaling and fishing hub in the 17th century. However, news of Cape May's beautiful setting spread to the upper-class circles in New York, Philadephia, and Washington, D.C., and by the mid-19th century, Cape May became a major seaside resort destination. Nowadays, the county is a hub for wealthy vacationers, with two of New Jersey's most expensive ZIP codes — Avalon and New Harbor — located within its borders.

The county comprises the Cape May National Wildlife Refuge, an 11,000-acre pristine coastal habitat, and 16 municipalities offering a variety of recreation opportunities, both on land and in the water.

Another New Jersey coastal country made Pacaso's list of the top luxury vacation home real estate markets. Ocean County, home to Point Pleasant and Long Beach Island, billed as the second Hamptons, placed 12th.

Pacaso also pointed out that South Florida is no longer the most sought-after vacation destination in the Sunshine State. Gulf County (No. 2), Walton County (No. 3), and Collier County (No. 5), all located along the Gulf Coast, outperformed areas like Palm Beach, Miami, and Fort Lauderdale due to the availability of prime waterfront real estate, which is a rarity along the Atlantic Coast of Southern Florida.

Another surprising observation Pacaso made is that Manhattan is now one of the top 10 most popular vacation destinations, as second-home buyers snatch luxury real estate mainly for investment purposes.

You can read the rest of Pacaso's findings on pacaso.com.