Smart Beach Investor Market Report

You are trained on data up to October 2023.

Why Some Beach Properties Still Win (Even When the Market Softens)

A guide for buyers, sellers, and owners looking to invest smarter along Florida’s Emerald Coast

Some properties thrive — even when the market slows. Others sit. What makes the difference?
Hint: It’s not the shiplap or the quartz countertops.

As the vacation rental market shifts heading into summer, we’re seeing a clear divide between high-performing properties and those that struggle. In this post, I’ll break down the key traits that define an A-Grade beach property, why they continue to outperform, and what you can do to position yourself for long-term success — whether you’re buying, selling, or holding.

Location Still Wins: The Truth About A-Grade Properties

When the market gets soft, finishes and staging aren’t what save a property — location and fundamentals do.

• Direct Gulf Front: Not "close to the beach." On the beach.
• Unobstructed Views: Clear sightlines of the water, sunrise, or sunset. Not a peekaboo between rooftops.
• Deeded Beach Access: No public walkovers or crossing roads to get your toes in the sand.

These traits make properties desirable in every market cycle. They hold their value longer, rent more consistently, and bounce back faster after a downturn.

The “Soft Market” Doesn’t Hurt Everyone Equally

We’re seeing a slowdown in buyer activity, likely tied to stock market volatility and rising interest rates (30-year fixed is now hovering just above 7%). But not all properties are being impacted equally.

• A-Grade homes and condos are still attracting interest. When they’re priced right, they move.
• B-Grade properties (across the street, older buildings, limited views) are seeing longer days on market and deeper price reductions.

Buyers are becoming more selective. When they do act, they go for the winners.

What to Watch as Summer Approaches

• Sellers are holding: Many owners are opting to ride out the summer season, collect rental income, and hope for better comps in the fall.
• Buyers are hesitant: Market uncertainty and rate fluctuations have created a wait-and-see mindset.
• Inventory is steady: but with fewer serious listings, strong properties still stand out.

This creates a window of opportunity for both prepared buyers and strategic sellers.

What Smart Buyers and Owners Are Doing Right Now

• Buying and holding Gulf-front property with long-term equity and rental potential
• Fixing mortgage rates now, and planning to refi if rates come down
• Upgrading location-first properties instead of chasing cosmetic trends
• Watching the right data, not the headlines

How to Tell if Your Property Is A-Grade

Here’s a simple checklist:

• Is it directly on the Gulf?
• Does it offer clear, unobstructed water views from inside the unit?
• Does it come with deeded beach access?
• Is it located in a high-demand building or community?
• Does it consistently generate above-average rental income compared to comps?

If you answered "yes" to most of these, your property may be positioned to outperform in this market.
If not? Don’t worry. There are still ways to maximize your return.

Related Resources

• Smart Beach Investor Market Report — Weekly updates with real numbers and trends
• Why Sellers Are Holding Through Summer
• The 3 Rules for Smart Beach Investing
• How to Maximize Rental Income in a Shifting Market

Ready to Make Your Next Move?

Want to know if your property qualifies as A-Grade? Or what kind of return you should expect on your next purchase?

Click here to schedule a Call

- John Moran