SEATTLE, July 10, 2018 /PRNewswire/ -- The premium for
living on the water isn't as high it used to be. Homes along the
water sold for a 36 percent premium in the first quarter of 2018,
according to a new Zillow® analysis. The extra cost for waterfront
living is at its lowest level since the second quarter of 2002, and
below the average premium since 1996 of 41 percent.
Across the country, waterfront homes tend to have higher prices
than similar homes in the same area, but the gap has closed over
the past several years. The typical U.S. home has more than
recovered from the recession, but waterfront homes have not.
Zillow defines waterfront homes as those where the homeowner can
get to the water's edge, whether it is a lake, river, or ocean,
without leaving their property. This analysis compares sale prices
for waterfront homes with homes in the same metro that have similar
physical features, but do not have waterfront access.
"Buyers are willing to pay extra for features that add a unique
benefit to a home, and being right on the water's edge is one of
them," said Zillow Senior Economist Aaron
Terrazas. "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. Still, having waterfront access
is incredibly appealing for many buyers, and even as environmental
risk factors like rising sea levels and storm surges gain more
attention and make some buyers more cautious in the homes they
consider, the premium for waterfront homes is likely to
endure."
Markets with the Highest Premium for Waterfront
Living
Metro
|
Median Value of
a
Waterfront Home
|
Average Sales
Premium
for Waterfront Homes
Since 1996
|
Share of Homes
that
are Waterfront
Homes
|
Jacksonville,
Fla.
|
$ 633,700
|
72%
|
0.27%
|
Cleveland,
Ohio
|
$ 463,100
|
68%
|
0.12%
|
Denver,
Colo.
|
$ 843,100
|
52%
|
0.04%
|
Baltimore,
Md.
|
$ 361,300
|
52%
|
0.04%
|
Milwaukee,
Wisc.
|
$ 569,800
|
50%
|
0.32%
|
Waterfront properties are most valuable in Los Angeles, where the typical home on the
water is worth $2,018,200. In three
other West Coast markets – San
Francisco, Seattle, and
San Diego – the median value of a
waterfront home is also above $1
million.
Buyers looking for a waterfront home will have the most options
in Miami, where 5.9 percent 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%
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with great real estate professionals. In addition,
Zillow operates an industry-leading economics and analytics bureau
led by Zillow Group's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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SOURCE Zillow