Pacaso, the second-home co-ownership marketplace, has unveiled its 2024 ranking of the nation’s best second-home destinations, and the results may surprise you. Neither the Hamptons nor Palm Beach claimed the top spot. Instead, Cape May, New Jersey has emerged as the leading luxury vacation home market in the United States.
Located at the southernmost tip of New Jersey, Cape May County has long been a cherished retreat for residents of Philadelphia and New York City. The region is home to iconic beach towns such as Ocean City and Avalon, making it a timeless escape that blends coastal beauty with historic charm.
With a second-home-to-primary-home ratio exceeding 150 percent, the area defines what it means to be a premier vacation destination. Yet, exclusivity comes at a price. In 2024, the average home value in Cape May reached $1,098,630, underscoring its reputation as one of the most sought-after luxury markets.
Cape May’s rise is remarkable. Once outside the top 20, it has quickly climbed the ranks, thanks to its 30 miles of pristine white-sand beaches and unparalleled location between the Atlantic Ocean and Delaware Bay. For generations, Cape May has been a treasured destination, evolving from its origins as a whaling and fishing hub in the 17th century to becoming a prominent seaside resort by the 19th century. Today, it remains synonymous with luxury and leisure, featuring two of New Jersey’s most prestigious ZIP codes, Avalon and Stone Harbor.
Beyond the shoreline, Cape May offers more than beaches. The county includes the Cape May National Wildlife Refuge, spanning 11,000 acres of coastal habitat, and 16 distinct municipalities that provide an array of recreational opportunities, from boating and fishing to nature trails and cultural experiences.
Cape May was not the only New Jersey county to secure a spot in the rankings. Ocean County, often described as the “second Hamptons” with destinations like Point Pleasant and Long Beach Island, earned 12th place.
Nationally, trends also shifted. South Florida markets such as Palm Beach and Miami slipped in popularity, while Gulf Coast destinations including Gulf County (No. 2), Walton County (No. 3), and Collier County (No. 5) surged ahead, thanks to their prime waterfront properties. Even Manhattan has become a surprising entrant in the top 10, appealing to luxury buyers who view vacation homes as investment assets.
For Philadelphia and Main Line residents, Cape May’s recognition highlights the unique advantage of having the nation’s premier luxury vacation market just a short drive away. Whether you are searching for an investment property, a private coastal retreat, or a legacy home for generations, Cape May offers a rare opportunity to own in one of the country’s most exclusive markets.
Ready to explore Cape May real estate or other luxury properties along the Main Line, Philadelphia, or the Jersey Shore? Contact Sean Elstone today. We specialize in white-glove service, strategic marketing, and securing homes in the most coveted markets.
Photo by: Nick Marraro, Motion City Media
