Sharp drop in premium paid by buyers
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 |
Average Sales Premium |
Share of 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- |
$ 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 |
$ 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% |
