Vacation homes have long been a draw for many Americans, from ski condos to beachside retreats. But rising real estate prices have meant that a growing number of second homeowners can?t afford America?s priciest destinations. Instead of letting expensive real estate thwart their dreams of owning a vacation property, today's buyers are looking to new destinations. Small towns like Beacon, New York, Bolinas, California, and Joshua Tree in Southern California are booming, transitioning from out-of-the-way, rustic communities into new second-home hotspots. With the Great Recession eight years past, demand for vacation homes has steadily increased. Vacation home sales rose by 57.4 percent in 2014 compared with 2013, reaching a record high. Also in 2014, 21 percent of home purchases were vacation homes. That number fell in 2015 to 16 percent, but the National Association of Realtors reports that the number of people buying second homes is still historically high. Second homeowners prefer properties in resort areas or small towns, with more than 49 percent of vacation buyers choosing to own in coastal communities or near lakes. While the vacation home market is hotter than ever, most second homes aren?t the pricey mansions we?ve come to associate with the Hamptons or Aspen; the median vacation home price in 2015 was only $192,000 for an average home of just 1,500 square feet.

Who is buying all of these properties" One growing group of second-home buyers are baby boom...