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.
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).
"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.
About Zillow, Inc.
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his 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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.
Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy, Agentfolio and Digs are registered trademarks of Zillow, Inc. HotPads and Retsly are trademarks of Zillow, Inc.
[i] This analysis does not seek to compare the same home on the water and inland. As a result, differences in home size, quality and other characteristics may partly explain the differences between waterfront and non-waterfront home values.
[ii] Due to the small sample sizes inherent in many of the cities, smoothing techniques are employed in the city-level waterfront home value calculations. As a result of the smoothing, this analysis looks at final calculations based on data available as of May 2014, including Zillow Home Value Index data from April, 2014.
[iii] Those cities with a population of 100,000 or more that were included among the 250 total cities analyzed.
[iv] The Zillow Home Value Index is the median estimated home value for a given geographic area on a given day. The most widely reported version of the Zillow Home Value Index includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The city-level data used in this analysis only includes single-family homes. The Zillow Home Value Index is always expressed in dollars, and seasonally adjusted.
SOURCE Zillow, Inc.
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