REAL ESTATE TOPICS

U.S. Waterfront Home Values Twice as High as Overall Home Values

New waterfront analysis calculates median value of waterfront, single-family homes in 250 U.S. cities

- Nationwide, the median single-family home is valued at $171,600, while the typical lake or oceanfront house is worth $370,900.

- Among large cities, biggest premiums for waterfront single-family homes found in Tampa, Honolulu and Long Beach.

Sep 12, 2014

SEATTLE, Sept. 12, 2014 /PRNewswire/ -- Nationwide, the typical oceanfront or lakefront, single-family home is worth more than double the median value of all homes, and in some communities the median waterfront house could be worth ten or more times the median value of non-waterfront houses[i], according to a new analysis by Zillow®. In the U.S. at the time of this analysis[ii], the median single-family home was worth about$171,600, while the median waterfront house was valued at $370,900, a waterfront premium of 116.1 percent.

Among large cities analyzed[iii], the biggest difference between median non-waterfront single-family home values and median waterfront house values are in Tampa, Fla. (waterfront premium of 733 percent); Honolulu, Hawaii (waterfront premium of 334.5 percent) and Long Beach, Calif. (waterfront premium of 321.6 percent).

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"The allure of ocean and lakefront living is powerful and undeniable, and millions of homeowners nationwide dream of one day owning a home on the water. But those dreams come at a price," said Zillow Chief Economist Dr. Stan Humphries. "Waterfront properties are both relatively scarce and highly coveted, and that high demand and limited supply leads to higher home prices. Additionally, added insurance, floods, environmental mitigation and infrastructure costs are often part of the tab when buying a waterfront home. Still, as long as buyers understand the added costs and potential headaches, waterfront living is likely to remain one of life's simple pleasures for many, many years to come."

The median waterfront home value is calculated in the same way as the Zillow Home Value Index[iv], and represents the median value of all single-family waterfront homes in a given community. The index includes single-family homes located 150 feet or closer to the waterline of an ocean or lakes with a total combined size of 10 square kilometers or greater. Properties separated from direct waterfront by a road with a speed limit of 25mph or less are also considered waterfront. Riverfront properties were not included in this analysis, nor were condominium or co-op housing units. Zillow's initial analysis covers 250 cities and towns nationwide with at least 100 waterfront homes meeting the above criteria.

Cities w/ Population Greater Than 100,000	Median Value, Non-Waterfront Single Family Homes	Median Value, Waterfront Single Family Homes	Waterfront Premium
Tampa, FL	$               125,300	$              1,043,700	733.0%
Honolulu, HI	$               877,400	$              3,812,000	334.5%
Long Beach, CA	$               505,200	$              2,130,000	321.6%
Cleveland, OH	$                 54,300	$                  225,000	314.4%
Virginia Beach, VA	$               260,900	$                  940,100	260.3%
Seattle, WA	$               489,000	$              1,710,400	249.8%
San Diego, CA	$               564,900	$              1,924,500	240.7%
Pensacola, FL	$                 99,800	$                  325,300	226.0%
Bellevue, WA	$               652,300	$              2,016,200	209.1%
Boca Raton, FL	$               373,100	$              1,135,100	204.2%
New Orleans, LA	$               175,500	$                  483,000	175.2%
Metairie, LA	$               199,700	$                  530,000	165.4%
Mobile, AL	$                 97,200	$                  227,700	134.3%
New Port Richey, FL	$               122,200	$                  273,100	123.5%
Fort Myers, FL	$               179,300	$                  382,800	113.5%
Stamford, CT	$               535,100	$              1,113,400	108.1%
Bradenton, FL	$               203,700	$                  413,400	102.9%
Green Bay, WI	$               107,800	$                  203,300	88.6%
Lakeland, FL	$               106,000	$                  199,500	88.2%
West Palm Beach, FL	$               189,700	$                  343,500	81.1%
Cape Coral, FL	$               165,900	$                  299,500	80.5%
Orlando, FL	$               172,600	$                  300,500	74.1%
Huntington Beach, CA	$               731,700	$              1,270,000	73.6%
Tallahassee, FL	$               151,200	$                  244,600	61.8%
Hampton, VA	$               148,100	$                  218,200	47.3%
Jacksonville, FL	$               119,400	$                  157,700	32.1%

Information on all 250 cities analyzed can be found on Zillow Research here.