Cape May, New Jersey: The Hottest Luxury Vacation Home Market in the U.S.
When you think of high-end vacation homes, places like the Hamptons or Palm Beach probably come to mind. But according to Pacaso’s 2024 ranking of the best second-home destinations, the top spot belongs to an unexpected location—Cape May, New Jersey.
Why Cape May Is the Ultimate Luxury Vacation Destination
Located at the southern tip of New Jersey, Cape May has been a favorite getaway for generations. With over 30 miles of white sand beaches and charming coastal towns like Ocean City and Avalon, it offers a mix of history, exclusivity, and natural beauty.
Key reasons buyers are flocking to Cape May:
- High demand for second homes – More than 150% more second homes than primary residences, making it a true vacation home hub.
- Strong property values – The average home price in 2024 is $1,098,630, reflecting its growing desirability.
- Prime location – Easily accessible from Philadelphia and New York City, yet far enough to feel like an escape.
From Historic Resort Town to Luxury Real Estate Hotspot
Cape May’s history runs deep. Originally inhabited by the Kechemeche Indians of the Lenni-Lenape Nation, it later became a whaling and fishing center in the 17th century. By the mid-19th century, it had transformed into a luxury resort town, attracting wealthy vacationers from New York, Philadelphia, and Washington, D.C.
Today, Cape May continues to be a high-end retreat, home to two of New Jersey’s most expensive ZIP codes—Avalon and New Harbor. The region also boasts the Cape May National Wildlife Refuge, an 11,000-acre coastal haven perfect for outdoor enthusiasts.
New Jersey’s Luxury Real Estate Boom
Cape May isn’t the only Jersey Shore hotspot seeing a surge in luxury homebuyers. Ocean County, home to Point Pleasant and Long Beach Island, ranked 12th on Pacaso’s list. Sometimes called the "Second Hamptons," Ocean County is quickly gaining attention for its upscale waterfront properties.
A Shift in U.S. Luxury Vacation Home Markets
Beyond New Jersey, other unexpected markets are emerging:
- Florida’s Gulf Coast is taking over – South Florida’s real estate dominance is fading, with buyers now preferring areas like Gulf County (No. 2), Walton County (No. 3), and Collier County (No. 5) for their waterfront exclusivity.
- Manhattan enters the vacation home market – Surprisingly, New York City has become a top 10 vacation home destination, as buyers invest in luxury properties for rental income.
Cape May: A Smart Investment for Second-Home Buyers
With its rich history, stunning coastal scenery, and rising home values, Cape May is redefining luxury real estate in the U.S. Whether you're looking for a serene beach retreat or a prime investment property, this Jersey Shore gem is proving to be one of the most sought-after destinations for affluent buyers.
