The vacation-home market has cooled off the pandemic-era frenzy, and the picture is very market-specific rather than one trend. Some resort areas have seen inventory build as owners who overbought during the boom, and now face steep fire-related insurance costs, look to sell. Lake Arrowhead is one we watch. Others, like Mammoth and Lake Havasu, have held up comparatively well. So the honest read is that it depends on the specific place, and we won't predict a direction, because nobody reliably can. The structural shift worth understanding is short-term rental regulation, which has reshaped the math for anyone counting on Airbnb or VRBO income to carry the property. One of us co-owns a vacation condo in Rancho Mirage, and that area now requires a minimum stay well beyond the old short-vacation window, which rents at a much lower effective rate than the nightly, week-long stays people used to underwrite. When rules like that land, the income assumption behind the purchase can evaporate. So if you're buying a vacation home, underwrite it two ways: - Can you comfortably carry it with no rental income? Local rules can change after you buy. - Price the insurance realistically in fire- and disaster-exposed areas, since that cost is doing a lot of the work in which markets are softening. Buy the place because you want to use it, and treat any rental income as upside rather than the plan.