Miami, Malibu, and the Hamptons are the usual luxury beach hotspots. They are gorgeous no doubt. But the prices are wild, competition is insane and more importantly, those places are just too crowded. High net worth buyers are simply not investing in these “overrated” places anymore.
They are quietly shifting toward smaller beach towns where you can still get privacy, ocean views, fewer zoning restrictions and a better price-to-value ratio. Tempted to know where the moneyed people are moving? Keep reading as we uncover seven U.S. beach markets are getting a lot more attention than you might think.
Beach Market Checklist-What High Net-Worth Buyers Are Looking For
Before looking at locations, here’s a quick checklist wealthy buyers usually follow:
- Limited coastline = long-term price support
- Growing population trend
- Easy access to airports, hospitals, restaurants
- Property taxes should not over the roof
- Homes must hold rental value when not in use
- Safe, clean, and not overcrowded
If a place checks most of these boxes, luxury demand also follows.
7 Underrated Beach Markets Luxury Buyers Are Quietly Targeting
1. Gulf Shores, Alabama
Wanting to experience Florida without the price tag that comes with it? Then, welcome to the Gulf Shores of Alabama. Gulf water, long beaches, family-owned seafood restaurants, and a slower pace of life; exactly how you imagine your life in a coastal area.
A lot of buyers here are retirees and second-home families from Texas and the Midwest. Lots of luxury homes exist, listing well above the $5M bracket. But residents here are more into golfing, fishing, and hosting grandkids than showing off. Maybe that’s why it’s still under the radar.
Watch-outs
- Weather risk (hurricanes, flooding) must be factored in.
- Infrastructure & luxury amenities may not match higher-tier markets yet.
2. Hilton Head Island, South Carolina
Hilton Head was never in the “ultra-luxury” race. People move here primarily because the beaches are quiet, and homes feel private. Residents really liked to keep it as a hidden gem.
The luxury interest comes mostly from Northeast professionals who want lower property taxes and warm weather without losing access to all the city amenities. Another unique thing about Hilton Head is that kids and retirees blend well here. So, it’s a multigenerational luxury island rather than just a retirement zone.
But looks like it won’t stay under radar for a very long time. Recently the median single-family home price on Hilton Head rose to $1,200,000 (10% up from prior year), gaining countrywide investor attention.
Watch-outs
- It’s less hidden than other cities in the list due to high increase in price in recent times.
3. St. Petersburg, Florida
Typically overshadowed by Tampa and Miami, St. Petersburg (on Tampa Bay) is quietly ascending. The reason? St. Pete is lively but not chaotic. It has beaches, yes. But the waterfront lifestyle blends with culture. That’s why it’s attracting wealthier buyers earlier than predicted. You’ll see people moving from Miami, Tampa, NYC, and Chicago who still want nightlife and walkable districts but also less traffic, less glam, and more community.
Did you know? A penthouse in the new Waldorf Astoria Residences St. Petersburg sold for US$27 million. If that doesn’t signal growth in value, what else does?
Watch-outs
- Florida has weather risk concerns.
- Condo regulations are rising. Please investigate before buying.
4. North Topsail Beach, North Carolina
North Topsail is for people who want a beach house to disappear to, not to be seen in. There’s no flashy nightlife, no crowded boardwalks and that’s the charm.
Luxury buyers here are usually privacy-seekers; writers, remote workers, retirees, and couples who want calm mornings, and front-porch sunsets. Then there’s another set of buyers who are eying it for Atlantic-coast access without the mega-prices of places like the Hamptons.
Rental potential exists, but most buyers use the home first, rent second. You come here when you don’t want everyone to know where you escaped to and the value makes it possible. Median home prices sit at $525K, while luxury properties are above $1.5M.
Watch-outs
- Infrastructure & luxury service ecosystem may still lag top markets.
- Resale volume may be lower.
5. Traverse City, Michigan
If you believe that palm trees aren’t mandatory to feel rich, you are gonna love Traverse. With aesthetic vineyards, boating, and cozy winters, this city is fully Pinterest coded. It’s not tropical, but it has a seasonal rhythm that many high-income families actually prefer.
The buyers moving here aren’t escaping the cold. Many are from Chicago and Midwest wanting to experience calm lake mornings. The area also has a big community feel.
Median listing home price for 2025 was around $525K; quite affordable compared to Miami to be honest. And, super luxury homes sit at millions. Likely less competition from buyers who are after “oceanfront only” markets.
Watch-outs
- Winters are long, so year-round rental/investment dynamics differ.
- Liquidity may be slower than sun-belt beach markets.
6. Galveston, Texas
Galveston is commonly referred to as “weekend beach escape for Houston’s wealthy.” Many owners keep their primary home in Houston and treat Galveston as the holiday switch-off zone. The best part? They don’t have to leave Texas.
The ocean, backyard BBQs, big houses, and kids running around; Gravestone is all about being family friendly.
Even though luxury homes exist, you’ll rarely see the flashy “look at me” architecture that Miami has. That’s why it’s in our “underrated” list.
Watch-outs
- The market appears to have softened (value down by 9%). You can see it as an opportunity or a warning sign.
7. Myrtle Beach, South Carolina
Myrtle Beach used to have a bit of a “party beach” reputation. Now it’s quietly turning into a magnet for wealthy retirees, remote workers, and second-home buyers who want warm weather and a beachy lifestyle.
The metro’s population has been growing fast, especially seniors. Between 2020 and 2023, the 65+ population jumped by about 23%, and seniors now make up more than a quarter of the 400K+ residents in the metro area.
Eddie Boyd, one of the top real estate agents in Myrtle, commented, “Short-term rentals are also big here; annual Airbnb revenue is around $28K per listing. The occupancy rate is also satisfactory, especially during summer.”
So, for buyers, a Myrtle Beach house can mean blending personal use and rental engine.
Watch-outs:
- Insurance and storm risk are very real on this coast.
- Parts of the market are saturated with mid-range condos, so “true” luxury needs careful selection.
Bottom Line
Underrated doesn’t mean “no risk.” Every coastal purchase comes with its special set of caution flags: storms, insurance, property management and what not. That’s why we recommend you go for two markets: one entry-level luxury (Gulf Shores or Myrtle Beach) and one premium play (Sanibel or Hilton Head). Also, keep close watch on migration flows, and new luxury listings. So, you don’t miss out when the bids are up.
