Shoreline Property Price is Receding, What is Moving People Inland?

Multiple factors are considered when homeowners are deciding where to buy or build their next perfect home. Employment rates, educational opportunities, climate, commuting needs, and other issues are usually important for those looking for new real estate. However, one trend seems to have remained solid, even as economic and cultural climates have changed. Dreams of waterfront living have always held strong.

Until now, that is. Homes near the water used to bring in a high premium, as high as 74%, but averaging around 41% since 1996. However, these homes commanded only a 36% premium during the first quarter of 2018, down from the highest average of 54% in the second quarter of 2012. So why the decline?

According to Zillow, who released these numbers as part of a study last week, there are several contributing factors. While these properties maintained their appeal during the bust, they have yet to return to their pre-recession highs. With the rest of the housing market is strong right now, these locations still enjoy a premium, just a more subdued one.

Mother Nature is also playing a role in keeping people away from shorelines. Rising sea levels in response to climate change is biting the waterfront property market, as well as erosion associated with sea level change. The increase in numbers of catastrophic hurricanes and its correlated fear factor most likely play a role as well. It’s possible that personal tastes change, of course, but it doesn’t seem likely that beach lovers have suddenly fallen out of love with the ocean.

The more logical answer appears to be the growing dangers of living near the water, especially with growing rates of flooding across the country. A report by the Union of Concerned Scientists estimates that homes all over the United States with a total value of $117.5 billion can expect that risk to continue to rise over the next 30 years. And with most consumers considering their home an investment, it makes sense that the strain on the pocketbook might be quieting the call of the sea.

Follow us on social media for the latest updates in B2B!

Latest

Pharmaceutical
Revolutionizing the Audit Process: Advancements in Supplier Assessments Within the Pharmaceutical Sector
March 23, 2023

Pharmaceutical companies invest significant resources in research and development to discover new drugs and therapies and improve existing ones. This involves rigorous testing, clinical trials, and obtaining regulatory approval before a drug can be sold. Government agencies, such as the Food and Drug Administration (FDA) in the United States, oversee the approval process and conduct […]

Read More
Disaster Response
Lessons Learned in Disaster Response, Recovery, and Resiliency
March 23, 2023

Natural disasters are one of the most unpredictable, but expected forms of destruction that humanity can expect to happen anywhere and at any time. Unfortunately, many types of disasters result in the loss of life, in addition to wide-scale devastation. When it comes to educational facilities like schools, there’s a certain type of disaster response […]

Read More
How Open-Source IoT Solutions are Redefining the Edge
March 23, 2023

For the tech industry, finding solutions is a daily priority. So, the discovery of new and improved solutions is always a constant goal for the advancement of this. In a new episode of “To the Edge and Beyond,” host Michelle Dawn Mooney interviewed Intel Product Engineer Sean Williams, and IOTech CTO Jim White, to […]

Read More