Are we falling out of love with waterside living?

by Steve Randall11 Jul 2018

Waterfront living continues to command a premium from homebuyers but they are not prepared to pay as much as they have done.

In the second quarter of 2012, the average premium paid for a waterfront property was 54% but in the second quarter of 2018 it was down to 36%, taking it below the average of 41% since 1996.

The figures are included in an analysis from Zillow which says that waterfront homes have not enjoyed the recovery of most US homes which has skewed the premium calculation.

"These homes are relatively rare, making up only a small portion of the housing market, and that scarcity keeps prices high. With inventory as low as it is, buyers are spending more just to get into the market, which has narrowed the gap somewhat between waterfront homes and inland homes,” explained said Zillow Senior Economist Aaron Terrazas.

The highest premium is in Florida
Jacksonville, FL, has the highest premium (72%) followed by Cleveland, OH (68%) and Denver, CO (52%).

Waterfront properties are most valuable in Los Angeles, where the typical home on the water is worth $2,018,200; and the median value of a waterfront home is above $1 million in San Francisco, Seattle, and San Diego.

Buyers looking for a waterfront home will have the most options in Miami, where 5.9% of all homes offer waterfront living.

Metropolitan Area

Median Value of
Waterfront Home

Average Sales Premium
for Waterfront Homes
Sold Since 1996 (%)

Share of Homes
That Are
Waterfront Homes

United States

$ 426,300

41

0.47%

Atlanta

$ 644,800

34

0.08%

Austin

$ 572,500

42

0.16%

Baltimore

$ 361,300

52

0.04%

Boston

$ 463,700

11

0.06%

Charlotte

$ 697,600

41

1.03%

Chicago

$ 279,000

21

0.21%

Cincinnati

$ 166,600

5

0.04%

Cleveland

$ 463,100

68

0.12%

Columbus

$ 372,300

41

0.10%

Dallas-Fort Worth

$ 410,300

41

0.08%

Denver

$ 843,100

52

0.04%

Houston

$ 364,000

35

0.30%

Indianapolis

$ 493,000

42

0.16%

Jacksonville

$ 633,700

72

0.27%

Kansas City

$ 379,000

31

0.09%

Los Angeles-Long Beach-
Anaheim

$ 2,018,200

14

0.05%

Memphis

$ 398,300

6

0.08%

Miami-Fort Lauderdale

$ 369,300

38

5.86%

Milwaukee

$ 569,800

50

0.32%

Minneapolis-St. Paul

$ 483,500

32

0.13%

Nashville

$ 381,300

22

0.08%

New York / Northern New
Jersey

$ 665,700

26

0.18%

Orlando

$ 357,600

27

0.70%

Philadelphia

$ 185,400

9

0.03%

Phoenix

$ 413,600

29

0.11%

Pittsburgh

$ 153,300

-11

0.04%

Portland

$ 625,900

24

0.22%

Riverside

$ 446,200

25

0.38%

Sacramento

$ 763,100

47

0.35%

San Diego

$ 1,014,800

27

0.72%

San Francisco

$ 1,175,000

8

0.48%

Seattle

$ 1,024,300

47

0.66%

Tampa

$ 496,200

39

3.31%

Virginia Beach

$ 487,700

36

0.97%

Washington, D.C.

$ 469,500

30

0.13%

 


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