Cape May County's vacation marketplace is dotted with upscale homes like this bayfront house under construction in Ocean City.
Cape May County is renowned for its family-friendly and upscale beach communities that attract millions of visitors each summer to the Jersey Shore.
Now, the county is famous for something else: It is considered the top luxury vacation home market in the entire country, according to the real estate platform Pacaso.
Cape May County wasn’t even in the top 20 of luxury vacation home markets last year, but vaulted into the coveted No. 1 spot in Pacaso's rankings for 2024. Top 20 luxury vacation home markets of 2024 | Pacaso.
“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,” Pacaso said in its rankings.
Ocean City Council President Pete Madden, who is also the broker-owner of Goldcoast Sotheby’s International Realty in Ocean City, called the Pacaso rankings “awesome” for Cape May County.
“I don’t think there’s one thing that makes us the top spot. I think it’s many things. Cape May County, as a whole, is great because of what each individual town does. I think the local residents in each town take a tremendous amount of pride in their towns,” Madden said in an interview.
Madden noted that the Jersey Shore’s appeal to vacationers from the Philadelphia market and tri-state area also makes Cape May County a desirable place for second homes.
“We’re lucky with the Philadelphia market and tri-state area really enjoying the Jersey Shore,” he said.
New Jersey had not one, but two counties, crack the top 20 in Pacaso’s 2024 listings. Ocean County came in at No. 12 for luxury vacation homes. Ocean County is another Jersey Shore hotspot featuring beachfront communities such as Seaside Heights, Long Beach Island and Point Pleasant Beach, Pacaso said.
Rounding out Pacaso’s top five spots were Gulf and Walton counties in Florida, Barnstable County, home of Cape Cod in Massachusetts, and Collier County, another popular Florida area.
Cape May's charming Victorian architecture is a major draw for vacationers. (Photo courtesy of Adventures in Cape May)Cape May County offers an array of attractions to tempt second-home buyers – whether it’s the family-friendly Boardwalk in Ocean City, the bars and restaurants in Sea Isle City, the Victorian-era architecture in Cape May or the amusement rides in Wildwood.
Pacaso based its rankings on an analysis of price and sales data for second-home transactions, the proportion of second homes to primary homes and demand for properties priced above $700,000.
According to Pacaso, the ratio of second homes to primary homes in Cape May County is 150 percent. Cape May County is the only market in Pacaso’s top 20 to exceed 100 percent.
Cape May County’s booming real estate prices reflect its growing popularity in the vacation home marketplace. Pacaso’s analysis shows Cape May County has an average sale price of $1,098,630 for second homes. It is common for upscale Cape May County shore homes to command prices well into the millions of dollars.
Overall, Cape May County is a multibillion-dollar vacation and tourism colossus. Tourism spending rose by 4.1 percent in 2023 to $7.7 billion, compared to $7.4 billion in 2022, according to the Cape May County Department of Tourism.
In another major sign of growth, the number of tourists increased by 1.8 percent to nearly 11.6 million visitors in 2023 compared to 11.4 million in 2022, the department of tourism reported.
Cape May County offers pristine beaches, lush natural areas, diverse landscapes and a rich cultural heritage, tourism officials often point out in touting the area as a vacation destination.
Sea Isle City's beaches typically are packed during the peak summer vacation season.
