5 U.S. Tourist Towns Where Property Prices Are Falling Fast — Don’t Miss These Hot Investment Deals!
Foreign tourism is down—now’s your chance to buy in top U.S. tourist towns at a discount before prices surge. These 5 markets are perfect for investors.
Due to rising international tariffs, visiting the U.S. has become more costly, discouraging many foreign travelers. As reported by Oxford Economics, Canadian visitor numbers fell 31.9% and Mexican arrivals dropped 23% in March 2025. This steep decline has resulted in an estimated $64 billion revenue loss for the U.S. travel sector, with analysts suggesting a full recovery might not happen before 2029.
While that’s bad news for tourism businesses, it’s opened up fresh opportunities for real estate investors. Reduced demand in traditionally high-traffic destinations is reshaping the housing landscape. Below are five top U.S. towns where shifting market dynamics are creating ideal conditions for property purchases.
1. North Myrtle Beach, South Carolina: Coastal Value With Negotiating Room
Once a summer magnet, North Myrtle Beach is adjusting to lower demand. Median property prices rose 3.4% year-over-year to $398,002 as of April 2025, according to Rocket Homes. But it’s a mixed bag — one-bedroom units are down 5.4%, and two- and three-bedroom homes also saw modest price dips.
Inventory has risen 6.3% since March, with over 1,000 listings available. Notably, nearly 87% of homes are selling for less than asking price, suggesting that buyers now have the leverage. Homes are taking longer to move, sitting an average of 128 days on the market, giving potential investors plenty of time to shop around and negotiate favorable terms.
2. Gatlinburg, Tennessee: Smoky Mountain Views and Rental Growth
Gatlinburg continues to attract U.S. vacationers, even as international visits stall. The average price for a single-family home is about $400,000, while premium cabins often exceed $600,000, fueled by high demand from short-term rental platforms.
The town is experiencing a development wave. Older lodges and motels are being modernized into updated vacation rentals, and zoning changes are allowing more types of residential use. With a growing population and dependable rental income potential, Gatlinburg remains a solid bet for investors looking for lifestyle returns and future appreciation.
3. Dauphin Island, Alabama: Underrated Gulf Destination With Rising Prices
While overseas interest in Dauphin Island has cooled, regional demand is surging. Thanks to better ferry links and recent infrastructure enhancements, this coastal Alabama spot is attracting local 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.
What makes it even more appealing is the 52% spike in housing inventory, bringing total listings to 160 in March. Off-beach homes are going for up to 20% less than similar Gulf Coast areas, and properties are staying on the market longer, giving buyers more flexibility and negotiating power.
4. Girdwood, Alaska: Nature Retreat With Investment Potential
This Alaskan town offers glaciers, hiking, and skiing — a perfect package for outdoor lovers. Even though global ski tourism is in decline, American adventurers are still house hunting here. Median property values stand at $445,350, and while property tax rates (1.26%) are above average, buyers see long-term promise.
New direct flights from Seattle are making the town more accessible to West Coast investors. The local government is offering tax incentives for rental renovations through 2026, encouraging upgrades that can boost rental revenue. With a steady 5.4% average annual price growth over the past decade, Girdwood is a niche but stable market.
5. Truro, Massachusetts: Cape Cod Elegance With Price Swings
Located on the outer edge of Cape Cod, Truro is witnessing both opportunities and risks. According to Rocket Homes, median home values rose 4.7% to $944,500 in April 2025. But the market is shifting: five-bedroom homes dropped 38% in value year-over-year, while one-bedroom homes spiked 50%, highlighting a shift in buyer preferences.
Inventory is up 19% month-over-month, giving homebuyers more choices. Despite a 12% drop in European vacation bookings, domestic demand remains strong. Recent improvements in flood defenses have restored buyer confidence, and flexible seller terms are becoming more common. Investors now have a prime chance to secure property before international travel resumes at full pace.
Why Now Is a Smart Time to Buy in These Tourist Towns
The recent drop in international visitors—largely due to tariffs—has shaken up popular U.S. vacation spots, cooling demand and easing home prices. But this slowdown isn’t just a setback; it’s a golden chance for savvy buyers. With more homes available and prices softening, these five towns offer a unique opportunity to invest in desirable locations before tourism rebounds. Instead of waiting, buyers who move now can lock in better deals, enjoy more choices, and position themselves for future gains as travel picks back up. In other words, the current market shifts are creating one of the best entry points in years for vacation property investors.
Also Read: Florida Home Prices Are Falling — Is It Smart to Buy Now in 2025?
