5 Tourist Towns To Buy Property in While Tariffs Are High

Yahoo

25-05-2025

International tariffs have made visiting the United States more expensive, causing a steep drop in foreign tourism, especially from Canada and Mexico. According to Oxford Economics, the U.S. saw a 31.9% decline in Canadian visitors and a 23% drop in Mexican visitors in March 2025, compared to previous years. This trend has led to a $64 billion loss for the U.S. tourism industry, with experts predicting that travel numbers may not fully recover until 2029.
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For property investors, these changes have created rare opportunities in iconic tourist towns. As demand softens, prices and inventory are shifting, especially in destinations that once relied on foreign visitors. Below, we explore five towns where these trends have opened doors for buyers, and we link directly to the latest housing data.
North Myrtle Beach is a classic example of a market in transition. According to Rocket Homes, the median home prices rose 3.4% year-over-year to $398,002 in April 2025. However, not all segments are seeing gains: one-bedroom homes dropped 5.4%, and two- and three-bedroom homes also saw slight declines.
Inventory is up 6.3% from March, with over 1,000 homes on the market and nearly 87% of properties selling below asking price. This is a clear sign buyers have more negotiating power. Homes are taking longer to sell, averaging 128 days on the market.
These trends, combined with ongoing new construction and Myrtle Beach's enduring appeal, creates a great opportunity for those looking to enter a coastal market before international tourism rebounds.
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Gatlinburg remains a favorite for domestic tourists, even as international visits have slowed. The average single-family home price is around $400,000, with prime cabins fetching over $600,000 due to strong short-term rental demand. The town's population is growing, and more buyers are entering the market, drawn by the promise of steady rental income and Smoky Mountain views.
While some longtime residents are cashing out, new zoning changes and the conversion of older motels into modern vacation cabins are expanding investment options. The local market is expected to see moderate growth, making Gatlinburg a smart choice for those seeking both lifestyle and rental returns.
Dauphin Island's real estate market is bucking the national trend, thanks to strong domestic demand. While European tourism has dipped, new ferry connections and infrastructure upgrades are attracting regional buyers. The median home price jumped 10.2% year-over-year to $490,000 in March 2025, with four-bedroom homes up 18%, per Rocket Homes data.
Furthermore, inventory has also surged — 160 homes were for sale in March, a 52% increase from the previous month, giving buyers more choices. Off-beach cottages often sell 20% below similar Gulf Coast properties, and the area remains a buyer's market, with homes staying on the market longer and prices more negotiable.
The town's glacier access and year-round outdoor activities continue to draw steady interest from adventure-seeking Americans, even as international ski tourism dips. According to Ownwell, the median home value is $445,350, and property taxes are higher than the national average (1.26% effective rate). However, the area's unique appeal and limited inventory keep demand steady.
Direct flights from Seattle have made Girdwood more accessible to West Coast buyers who are avoiding international trips. The local municipal council has approved tax breaks for rental property upgrades, which will remain in effect through 2026. Despite recent tariff impacts, Girdwood's 10-year average price growth remains strong at 5.4%. This continues to draw investors looking for both rental potential and future appreciation.
Truro, on Cape Cod, is seeing both volatility and opportunity. Data from Rocket Homes showed the median home price rose 4.7% to $944,500 in April 2025. However, the increase was not uniform with all kinds of houses. Five-bedroom homes dropped 38% year-over-year, and inventory jumped 19% month-over-month. Conversely, one-bedroom homes soared 50% in price, reflecting shifting buyer demand.
Despite a 12% decline in European summer rentals, domestic visitors keep occupancy high, and recent flood-control projects have boosted buyer confidence. Sellers are offering flexible terms, and the market remains favorable for buyers as the area prepares for an eventual rebound in international tourism.
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Sources:
Oxford Economics, 'Inbound travel to US in steep decline'
Rocket Homes, 'North Myrtle Beach Market Report'
Rocket Homes, 'Dauphin Island Market Report'
Ownwell, 'Girdwood, Anchorage County, Alaska Trends'
Rocket Homes, 'Truro Market Report'
This article originally appeared on GOBankingRates.com: 5 Tourist Towns To Buy Property in While Tariffs Are High