Not all beach condos compete in the same market. A $275K Gulf Shores studio and a $2.1M Turquoise Place penthouse face completely different buyer pools, financing dynamics, and rental income profiles. This report segments the STR-eligible market into three tiers so we can compare apples to apples - and identify exactly where the opportunity is right now.
Every listing in this report has been screened for short-term rental eligibility using four MLS data fields: rental permission, minimum stay requirement, minimum night count, and stay duration term. Complexes with confirmed agent data-entry errors have been manually corrected and retained. Properties with genuine long-term or seasonal restrictions are excluded entirely.
With 11.8 months of supply and a sale-to-list ratio of 96.1%, this is a buyer-favorable market with real negotiating room. The 41% stale inventory rate signals motivated sellers across all price tiers - especially on listings that have been sitting for six months or more.
Absorption rate tells us how many months of inventory exists at the current pace of sales. Under 6 months = seller's market. 6–9 months = balanced. Over 9 months = buyer's market with negotiating leverage.
Every tier is sitting above the 9-month balanced threshold. Tier 3 (10.6 months) offers the tightest supply among luxury, while Tier 1 (12.6 months) carries the most inventory relative to sales - creating the strongest negotiating position for entry-level buyers.
Entry-level listings are currently priced 15.1% above where closed deals are clearing. This spread gives buyers significant room to negotiate below asking - a meaningful advantage at this price point where financing terms and down payment thresholds matter most. With 12.6 months of supply, sellers in this tier are motivated.
| # | Complex | Active | Pend | Closed | Median List | PPSF Sold | Avg DOM | Abs (mo) |
|---|---|---|---|---|---|---|---|---|
| 1 | Gulf Shores Plantation 1 | 20 | 2 | 26 | $310,000 | $402 | 101 | 9.2 |
| 2 | Royal Gulf Beach&Racquet Club 1 | 19 | 3 | 15 | $349,900 | $471 | 140 | 15.2 |
| 3 | Seaside Beach & Racquet Club 1 | 18 | 1 | 8 | $439,450 | $487 | 155 | 27.0 |
| 4 | Sugar Beach | 14 | 0 | 24 | $325,000 | $438 | 208 | 7.0 |
| 5 | Navy Cove Harbor 1 | 12 | 0 | 2 | $389,500 | $313 | 328 | 72.0 |
| 6 | Colony Club 2 | 10 | 4 | 21 | $209,950 | $197 | 188 | 5.7 |
| 7 | Sea Oats | 10 | 0 | 2 | $422,000 | $327 | 34 | 60.0 |
| 8 | Grand Caribbean | 9 | 1 | 11 | $439,000 | $415 | 65 | 9.8 |
| 9 | Resort Conference Center | 8 | 1 | 6 | $322,500 | $409 | 74 | 16.0 |
| 10 | Cotton Bayou | 8 | 1 | 6 | $467,000 | $385 | 272 | 16.0 |
Tier 2 active listings are currently priced 1.3% below recent closed transactions - meaning the market is offering properties at a slight discount to what buyers have actually paid in the last 12 months. This is a rare setup: the inventory is priced conservatively relative to proven market value, which creates a favorable entry point for mid-market buyers.
| # | Complex | Active | Pend | Closed | Median List | PPSF Sold | Avg DOM | Abs (mo) |
|---|---|---|---|---|---|---|---|---|
| 1 | The Beach Club 2 | 33 | 4 | 29 | $585,000 | $535 | 145 | 13.7 |
| 2 | Caribe 3 | 27 | 2 | 37 | $835,000 | $462 | 139 | 8.8 |
| 3 | Phoenix V | 17 | 2 | 13 | $625,000 | $522 | 144 | 15.7 |
| 4 | Phoenix VI | 14 | 0 | 3 | $770,000 | $552 | 68 | 56.0 |
| 5 | Phoenix On The Bay | 14 | 1 | 8 | $687,000 | $497 | 110 | 21.0 |
| 6 | Phoenix VII | 13 | 0 | 6 | $625,000 | $529 | 84 | 26.0 |
| 7 | Phoenix VIII | 12 | 0 | 1 | $676,700 | $542 | 183 | 144.0 |
| 8 | Phoenix X | 12 | 0 | 6 | $834,500 | $660 | 170 | 24.0 |
| 9 | Perdido Grande | 10 | 1 | 3 | $774,500 | $344 | 204 | 40.0 |
| 10 | Phoenix East | 10 | 1 | 7 | $637,000 | $545 | 137 | 17.1 |
Luxury listings are currently asking 7.9% above recent closed values. With 10.6 months of supply, this is still a buyer's market - and motivated sellers at this price point often have more flexibility on concessions, closing costs, and furniture packages than the list price suggests.
| # | Complex | Active | Pend | Closed | Median List | PPSF Sold | Avg DOM | Abs (mo) |
|---|---|---|---|---|---|---|---|---|
| 1 | Caribe 3 | 16 | 3 | 15 | $1.25M | $567 | 143 | 12.8 |
| 2 | Turquoise Place | 15 | 2 | 21 | $1.70M | $657 | 86 | 8.6 |
| 3 | Phoenix Gulf Tower Phase II | 13 | 0 | 7 | $1.45M | $873 | 194 | 22.3 |
| 4 | Phoenix Gulf Towers | 11 | 0 | 2 | $1.90M | $870 | 76 | 66.0 |
| 5 | Abaco Orange Beach 1 | 11 | 2 | 0 | $1.20M | - | 68 | - |
| 6 | Phoenix Orange Beach II | 10 | 1 | 6 | $1.66M | $842 | 166 | 20.0 |
| 7 | Phoenix Gulf Shores II | 9 | 2 | 37 | $2.08M | $556 | 97 | 2.9 |
| 8 | Phoenix West | 8 | 1 | 1 | $1.54M | $562 | 105 | 96.0 |
| 9 | Phoenix Key Tower I 1 | 8 | 0 | 10 | $3.50M | $943 | 65 | 9.6 |
| 10 | The Beach Club 2 | 8 | 1 | 3 | $1.14M | $538 | 68 | 32.0 |
The gap between what sellers are asking and what buyers are actually paying is your negotiation baseline. A positive gap means sellers are pricing above market reality. A negative gap means current listings are priced below what the market has proven it will pay.
Tier 1 has the widest ask-to-closed spread at +15.1% - entry-level sellers are pricing aspirationally and getting negotiated down. Tier 2 is the most interesting: active listings are actually priced below recent closed comps, making this the only tier where you're entering at or below proven market value. Tier 3 sellers are pricing above recent sales but still closing - luxury buyers here have room to negotiate on terms and concessions even when price holds firm.
These two cities share a coastline but serve different markets. Orange Beach commands a consistent premium - in price per square foot, median sale price, and buyer profile. Understanding this split helps calibrate value across specific complexes and locations.
Orange Beach closed transactions carry a 108% premium over Gulf Shores on median sale price, and a 16% premium on price per square foot. Both cities are currently buyer-favorable with supply above the balanced threshold. Gulf Shores offers the lower entry point; Orange Beach delivers the stronger rental rate potential for comparable square footage.
The charts below reflect STR-eligible listings and closed transactions across Gulf Shores and Orange Beach over the past 12 months. Market share is measured two ways: active inventory control and closed sales volume.
RE/MAX of Orange Beach leads all individual brokerages in active STR listings - giving our clients access to more current inventory, more seller relationships, and more real-time market intelligence than any competing firm. On closed transactions, RE/MAX of Orange Beach is within 4 deals of the #1 spot - a statistical dead heat. Combined across all three RE/MAX offices serving this market, the RE/MAX brand represents 299 closed transactions and 226 active listings - nearly double the nearest competitor on both measures. That reach is what backs the assessment and condition intelligence we bring to every transaction.
Higher floors command a consistent price premium across the STR market - not just in luxury towers but across all building types. This data comes from closed transactions where floor number could be confirmed from the MLS unit number.
There's a $86/sqft gap between ground-level and high-floor units - roughly +19%. On a 1,200 sqft unit, that's a $102,852 difference at the same square footage. For investment buyers, higher floors also tend to command stronger nightly rental rates, compounding the return on that premium.
A closer look at six complexes that consistently generate strong investor interest - covering the range from entry-level Gulf Shores to ultra-luxury Orange Beach gulf-front.
Listings that have been sitting for 180 days or more represent the highest-leverage negotiating opportunities in the market. These sellers have already demonstrated they're not moving at current pricing - which opens the door for aggressive, well-structured offers. Always require an estoppel certificate before closing.
| Complex | List Price | Beds | Sq Ft | Days on Market | Context |
|---|---|---|---|---|---|
| Abaco Orange Beach 1 | $912,500 | 4 BD | 1,775 sq ft | 1810 days | 5.0 yrs listed |
| Abaco Orange Beach 1 | $787,500 | 3 BD | 1,540 sq ft | 1340 days | 3.7 yrs listed |
| Abaco Orange Beach 1 | $645,000 | 2 BD | 925 sq ft | 1306 days | 3.6 yrs listed |
| Phoenix West | $950,000 | 3 BD | 1,926 sq ft | 1131 days | 3.1 yrs listed |
| Abaco Orange Beach 1 | $1.30M | 4 BD | 2,125 sq ft | 1078 days | 3.0 yrs listed |
| Four Winds | $635,000 | 2 BD | 1,017 sq ft | 1017 days | 2.8 yrs listed |
| Las Palmas | $297,900 | 2 BD | 643 sq ft | 964 days | 2.6 yrs listed |
| Phoenix West | $2.05M | 4 BD | 2,549 sq ft | 961 days | 2.6 yrs listed |
| Whaler | $400,000 | 2 BD | 1,015 sq ft | 954 days | 2.6 yrs listed |
| Phoenix III | $488,000 | 1 BD | 691 sq ft | 946 days | 2.6 yrs listed |
These aren't just stale - several have been listed for 2–3 years. That's not market resistance; that's a seller who hasn't found their price yet. A well-structured offer with a reasonable escalation clause or a clean closing timeline can unlock significant concessions that never appear in the list price.
Special assessments exist at virtually every condo complex at some point. Post-hurricane repairs, aging infrastructure, elevator modernization, pool resurfacing, and seawall work all get funded this way. What matters is not whether a complex has ever had one, but what is currently pending or being discussed. That is why we require an estoppel certificate and a full review of board minutes on every purchase we make together.
An estoppel certificate is a formal document issued by the HOA that discloses the current status of dues, fees, any pending or approved special assessments, and known litigation. It is the only reliable way to know what financial obligations transfer with the unit at closing. Request it during the inspection period, not at the closing table. A seller or listing agent who cannot or will not provide one is a red flag that warrants serious scrutiny before proceeding.
Once we go under contract, we are entitled to copies of the Board of Directors meeting minutes and the Annual Owners Meeting minutes. These documents are where the real story lives. A pending assessment that has not been formally approved yet will not appear on the estoppel, but it will show up in the minutes as a discussion item, a reserve study reference, or a contractor bid. Reviewing both sets of minutes gives us a forward-looking view of the association's financial health that the estoppel alone cannot provide.
RE/MAX of Orange Beach has more agents and a higher combined transaction and listing volume than any other firm in this market, and it is not close. That volume translates into on-the-ground intelligence that no document can replicate. When an assessment is being discussed, when a major repair is being bid, or when owners inside a complex are getting nervous, we hear it first because our agents are actively working those buildings. That collective knowledge is shared internally, and it is one of the most valuable things we bring to every transaction.
The data across all three tiers tells a consistent story: this is a buyer's market with meaningful negotiating leverage, real selection, and a favorable entry point relative to recent closed values - particularly in Tier 2.
For buyers who use the property personally 14 days or less per year, the IRS classifies it as a rental property - not a vacation home. That means depreciation, mortgage interest, insurance, HOA fees, management fees, and furnishings all become deductible against rental income. For higher-income buyers, cost segregation studies can accelerate depreciation dramatically in year one. The combination of strong Gulf Coast rental demand and significant tax shelter potential is what makes this market uniquely compelling for investment buyers. We build individualized ROI scenarios - including tax advantage modeling - for every property we evaluate together.