From Santa Claus, Indiana, to Christmas Town, USA: America's 10 Most Festive Holiday Towns

For the holiday season's most devoted fans, "decking the halls" is more than just a single weekend project; it's a way of life. But what if you could live somewhere that embraces the cheer all month long — or even all year?

From mountain towns covered in genuine snow to historic cities steeped in generations of lighting traditions, we explore 10 of the best places to live for those who believe it's always time to get into the holiday spirit.

“Santa’s House on Zillow always gets a lot of attention this time of year, but these towns give the big man some competition,” said Amanda Pendleton, Zillow’s home trends expert. “They’re filled with twinkling lights, community celebrations, and homes where the holiday spirit shines bright all season long.”

Zillow analyzed listings across the U.S. that include cheerful keywords like “Christmas lights,” “Santa,” “holiday spirit,” and “winter wonderland.” The resulting list showcases markets where homeowners are clearly decking the halls and highlighting the festive season as a major selling point. Let’s get into the spirit!

1. Santa Claus, Indiana

Typical home value: $294,208

Average rent: N/A

Yes, there’s really a town called Santa Claus in southern Indiana, and it is the ultimate holiday hometown. Santa Claus embraces its festive name with an annual parade, market, and light show. Christmas fans across the country love to visit this town and make the most of the holiday season.

Built for year-round cheer, this home is perfectly nestled on the banks of Lake Noel. It offers space to celebrate indoors and out. The heart of the home is the open-concept great room with vaulted ceilings and a floor-to-ceiling stone fireplace, which is shared with an expansive covered patio. This home is the ideal base to host family for the holidays and is just a sleigh ride away from the town’s famous light show and the Santa Claus post office.

2. McAdenville, North Carolina 

Typical home value: $471,800

Average rent: N/A

Known nationally as "Christmas Town USA," the holiday tradition in McAdenville, NC, is legendary, involving nearly many residents in its collective, spectacular outdoor light display. And you know this town loves the holidays when nearly two-in-five for-sale homes here showcase their “seasonal charm” in their Zillow listings.

A front-row seat to the spectacle, this home sits directly in the path of one of the country's most spectacular small-town holiday celebrations, known as the Yule Log Parade. This home is a classic two-story that provides a large canvas for any holiday string light enthusiast hoping to contribute to the town’s sparkling reputation.

3. Bethlehem, Pennsylvania 

Typical Home Value: $344,320

Average rent: $1,797

Dubbed "Christmas City," this historic destination is known for its beautiful colonial architecture, Moravian traditions, and a picturesque setting for a truly timeless Christmas experience. Listings in nearby communities like Blakeslee see nearly one-third of its for-sale home listings mention the holidays in their description.

Colonial charm ready for a wreath, this classic home in Bethlehem, PA, offers the stately curb appeal of an old-world Christmas. Its classic New England exterior and front lawn are perfectly suited for festive wreaths, outdoor lighting, and maybe a few carolers on a cold winter night.

4. Breckenridge, Colorado

Typical Home Value: $1,170,091

Average rent: $4,531

Combining the magic of a snowy mountain escape with charming Victorian architecture, Breckenridge offers the definitive cozy, high-altitude winter wonderland experience. Adding even a few holiday touches can really enhance your street’s winter spirit. 

This rental is five minutes from the glowing lights of Main Street, but also secluded among the evergreens, offering sweeping alpine views. Inside, floor-to-ceiling windows and soaring ceilings frame snowy panoramas. It provides the ideal après-ski gathering space, ready for a roaring fire and a post-Race of the Santas celebration.

5. Dahlonega, Georgia

Typical Home Value: $376,741

Average rent: $1,640

The heart of the North Georgia mountains, Dahlonega offers a wholesome, classic holiday atmosphere centered around its beautiful, illuminated historic square, complete with carriage rides and caroling. The proof is in the listing, where 6% of for-sale descriptions highlight the holidays.

Holiday hearth included, this three-story timber log cabin is defined by its stunning notched tree beam architecture. Equipped for festive family gatherings with seven beds, this home is a stone's throw from the cheery Dahlonega Square, where the town’s biggest winter holiday events take place.

6. Natchitoches, Louisiana

Typical Home Value: $185,180

Average rent: N/A

Natchitoches, sitting near the Louisiana-Texas border, is home to one of the oldest U.S. community holiday celebrations: the Christmas Festival of Lights. In fact, 2025 marked the event’s 99th anniversary! During this huge community gathering, the town’s historic riverfront is transformed with more than 300,000 sparkling lights.

Perfectly positioned for every major holiday event, this historic home sits directly on the route of both the Christmas Festival of Lights and the town’s Mardi Gras parade. Enjoy a warm Southern-style Christmas from the deck, or the New Year fireworks from the sunroom. 

7. Palmer Lake, Colorado

Typical Home Value: $532,161

Average rent: N/A

Palmer Lake’s most iconic symbol is the massive, glowing Palmer Lake Star atop the mountainside, seen as a cherished beacon and focal point for this town’s seasonal festivities. And festivities are no small event here, as 10% of its home listings mention having “festive features.”

A front-row seat to the town’s beloved Christmas Star, this lakefront home on Star View Circle provides a literal advantage for residents who want a perfect view of the famous Palmer Lake Star, no matter the season. The street name itself is a tribute to the star, providing a constant reminder of the community’s unique holiday traditions.

8. Windcrest, Texas

Typical Home Value: $308,343

Average rent: $1,231

Windcrest, TX, is home to a decades-old "Light-Up" competition, turning entire neighborhoods into dazzling, competitive, and elaborate works of light-up art. Ten percent of Windcrest’s for-sale home listings highlight the local holiday spirit, proving homeowners here take their decorating seriously.

Ready for the light-up competition, this expansive home offers plenty of exterior space to participate in — and maybe even win — the town’s legendary "Light-Up.” The large yard and prominent positioning as a corner lot on the street make it a perfect blank canvas for a top-notch holiday display.

9. Shaver Lake, California

Typical Home Value: $574,823

Average rent: N/A

With a snowy, mountainous backdrop and evergreen forests, the lakeside community of Shaver Lake, CA, feels like a classic holiday card, complete with an annual Winter Wonderland event.

The quintessential mountain retreat, this home embodies the rustic, cozy charm of a classic cabin. It’s the perfect place to warm up by a woodstove after a snowy day or to host a quiet, intimate family holiday gathering.

10. Ransom Canyon, Texas

Typical Home Value: $375,732

Average rent: N/A

This town stands out by creatively using its stunning canyon landscape to create dramatic, one-of-a-kind, illuminated holiday views that attract visitors from all over West Texas.

A dramatic hillside home, this residence sits on a lot ideal for the canyon-spanning light displays Ransom Canyon, TX, is famous for. This property’s high-up position backed up to a canyon is great for creating an ornate light setup that can be viewed dramatically against the vast West Texas sky.

If your goal is to buy a home that comes with a side of seasonal spirit, these 10 towns are a great place to start your search. From the competitive community lighting in Windcrest, TX, to the snowy serenity of Breckenridge, CO, the feeling of holiday cheer is already built right into the neighborhood. Start exploring these festive markets, and have fun finding a home that keeps the holiday feeling alive all year long.