Niagara Falls Is Hundreds of Miles from the Ocean but Still Tops This List of Popular Summer Destinations
With spring and summer just around the corner, investors are turning to beach houses, hoping to capitalize on the wave of seasonal visitors booking Airbnb and other short-term rentals.
You might not think of beaches when you think of Niagara Falls, but it’s at the top of AirDNA’s list of short-term rental (STR) investments.
AirDNA—a firm that aggregates and analyzes data for Vrbo and Airbnb—recently identified the top 10 markets for beach and coastal housing.
“Strong beach demand alone does not translate into excellent investment returns: In some coastal areas, high prices can make it difficult for rental income to keep pace, while affordable markets with strong tourist demand often generate strong yields,” Chloe GarlaschiAirDNA’s communications manager, tells Realtor.com®.
“Proximity to the water also plays a big role in pricing power, as homes near the coast often command higher nightly prices and tighter occupancy.”
To put the ratings together, AirDNA got a positive yield—it measures the market’s average revenue potential against its listing prices. Simply put, the company analyzed how much revenue the property could generate versus what it would cost to buy.
“Interestingly, all of these cities on the list have a median list price below the national median. There is no South Beach or Malibu here,” it said. Joel Bernerchief economist at Realtor.com. “Affordability is a key factor here when it comes to ROI in beachside STR, and these beach towns offer a lower entry point than the national housing stock at large.”
Here are the top cities to own a beach house, according to AirDNA—along with their annual income potential, median listing price, and current yield.
“These are average prices for the entire city, so expect areas near the beach to be more expensive,” Berner said. “Quick access to the water is highly desirable both for owner-occupiers and STR guests, so these properties often get a big premium.”
Niagara Falls, NY
Sea/beach/lake: Niagara River/Lake Ontario
Annual income potential: $29,000
Median listing price: $125,000
Current yield: 15.5%
“Although Niagara Falls is not a place you usually go to the beach, there is no denying that the availability of water is the biggest attraction,” noted AirDNA’s chief economist. Jamie Lane.
“Niagara Falls State Park is the main engine, with signature experiences like Cave of the Winds, Maid of the Mist, and the Observation Tower that support multi-night stays and peak season pricing power. Beyond the falls, the region has outdoor activities, wineries, and guided tours that help turn day trips into longer stays and support hiking.”
Corpus Christi, TX
Beach/beach/lake attractions: Gulf Coast beach and bayside
Annual income potential: $43,000
Median list price: $289,945
Current yield: 14.8%
“Corpus Christi is a Gulf Coast market that investors gravitate to for a simple reason: real beaches, real demand, and real income, without the sky-high affordability of many oceanfront properties,” noted Lane. “The city is built around the Texas coastal lifestyle—sand, water sports, family-friendly attractions—and benefits from weekend-drive accessibility for local Texas travelers.”
Port Arthur, TX
Beach/ocean/lake attractions: Gulf Coast Wetlands
Annual income potential: $35,000
Median list price: $152,300
Current yield: 14.4%
“Weekend visitors to Port Arthur are drawn to the fishing and birding around Sabine Lake, access to the beach at Sea Rim State Park, and easy access to beaches that attract families,” Lane said. “Cultural attractions, including the Museum of the Gulf Coast and the city’s Cajun-influenced food scene, help round out neighborhoods and support repeat visits.”
Muskegon, MI
Sea/beach/lake: Lake Michigan
Annual income potential: $40,000
Median listing price: $229,900
Current yield: 13.8%
“Much of the Lake Michigan shoreline in this region is protected land or low-density residential, limiting the supply of waterfront homes available for private ownership,” a Northern Michigan realtor. Sander Scottreal estate consultant at Real Estate Bees, tells Realtor.com. “When short-term rentals are allowed, that limited supply combined with strong summer tourism can generate more people per season.”
Fort Walton Beach, FL
Beach/beach/lake attractions: Coastal panhandle tours
Annual income potential: $47,000
Median list price: $382,450
Current yield: 13.4%
“Fort Walton Beach has a small-town feel, and the beaches are close and rarely crowded,” Susan Sharpebroker for EXIT Realty Anchor South in Fort Walton Beach, tells Realtor.com. “The boardwalk on Okaloosa Island offers dining and shopping options, as well as live entertainment and fireworks. Destin is a short drive away.”
Salisbury, MD
Ocean/beach/lake: East coast/coastal spillover
Annual income potential: $37,000
Median list price: $282,990
Current yield: 13.4%
Located on Maryland’s Eastern Shore, Salisbury combines small-town charm with easy access to the Atlantic coast. Located about 30 miles from Ocean City, this area attracts buyers and tourists looking for affordable homes while still being close to the highway and beaches.
West Pensacola, FL
Sea/beach/lake attractions: Gulf Coast beaches
Annual income potential: $32,000
Median list price: $310,000
Current yield: 13.3%
West Pensacola, FL, is just minutes from Pensacola Beach, making it an attractive destination for buyers looking for beach access without the beach prices. The area attracts visitors who enjoy boating and fishing, with nearby areas such as Perdido Key enhancing the region’s seaside appeal.
“West Pensacola appeals to buyers who want to be close to the Gulf Coast without paying the high prices seen in other coastal markets,” a real estate agent and investor. Ron Myers of Ron Buys Florida Homes tells Realtor.com.
Daphne, AL
Ocean/beach/lake: Gulf Coast System
Annual income potential: $58,000
Median listing price: $389,100
Current yield: 13.3%
This relaxed beach community sits less than 20 minutes from Mobile, AL, and offers easy access to waterfront entertainment along Mobile Bay. Although the area is not directly on the Gulf, visitors enjoy beautiful views of the harbor and a beach lifestyle that focuses more on relaxing on the beach than traditional beach living.
Port Richey, FL
Sea/beach/lake attractions: Gulf-coastal lifestyle with boating and fishing
Annual income potential: $36,000
Median listing price: $249,900
Current price: 12.9%
Port Richey, FL, is a small Gulf Coast community where visitors enjoy boating and fishing. This property offers a relaxed beach lifestyle, while being close to beach parks and marina access on the Pasco County coast.
“Port Richey stands out because it’s affordable,” Myers said. “It’s the kind of place where buyers feel they can get more for their money compared to some of the more expensive areas in Florida.”
Michigan City, IN
Ocean/beach/lake: Indiana Dunes beach resort
Annual income potential: $43,000
Median list price: $352,400
Current price: 12.3%
Michigan City, IN, is a popular Lake Michigan coastal community known for its sandy beaches and ocean access. Berner notes that Michigan City’s listing price is up 67.1% year-over-year, even as listings are up 18.5% over the same period. “The word has gotten out of this coastal town and it has created a hot real estate market,” he said.
