Beachfront living has a lot of appeal: the calming sound of the waves and beautiful ocean views make sunrise more promising and every sunset more spectacular. Whether you’re dreaming of a weekend home, a place you can rent out, or a forever home where you can enjoy a laid-back lifestyle, this could be your time to buy a beach house.
What are the main factors you need to consider when you’re looking at a beachfront property for sale in Florida, North Carolina, or an international location? Are there enough beachfront property listings to choose from? What do you need to know about owning property on the beachfront before you commit? We’ve got the answers.
Why Beachfront Property Is Still Desirable
Despite high interest rates and elevated prices, beachfront property listings remain extremely popular. Many aspiring oceanfront homeowners just want the lifestyle and health benefits you get with a beachfront property. Still, they also make great investments and can bring in a lot of passive income through vacation rentals. Since demand for short-term rentals is still at a post-pandemic high, buying a beachfront home to rent out is still a sound strategy.
The Market for Beachfront Properties
Inventory in many beachfront areas is tight, and prices remain high. If you have a reasonable budget, you can find wonderful properties in all the most popular spots. You may also find yourself outbid on your top choices. With a lower budget, you might be priced out of the more expensive locations. However, you can find homes for sale if you’re willing to go to emerging locations. Recent popular metros include the Gulf Coast, the Michigan Coast, South Padre Island in Texas, and Galveston, as well as the Pacific Northwest and secondary Florida cities like Daytona Beach and Pensacola Beach.
Financial Considerations
Buying property on the beachfront comes with extra costs. Before making an offer, consider these expenses:
Insurance Costs
In addition to homeowners’ insurance, your beachfront property will need to be protected with flood and hurricane insurance. This is especially true in storm-prone regions like Florida. This type of insurance coverage is getting more expensive, and in some areas, flood insurance isn’t even offered. Check into this before you settle on a location. Be sure to review the terms of insurance policies carefully. Talking to local residents may also give you an idea of where insurance rates are trending.
Maintenance Costs
Salt, sun, wind, and humidity can do a lot of damage to homes, both inside and out. Before you buy a beachfront property, factor in higher costs for basic upkeep. You may have more frequent replacement of siding, roofing, door and window hardware, outdoor furniture and fixtures, and HVAC system components.
Environmental Considerations
Some beachfront areas are facing faster erosion, rising sea levels, and have been subject to increased environmental regulations to protect wildlife. Talk to experts about the risks in the areas you’re considering to ensure your beachfront property won’t lose value over time.
Resale Outlook
Like any other real estate, beachfront properties have historically appreciated in value over time. That said, environmental threats need to be considered, as future homebuyers may shy away from properties in storm- and flood-prone areas. Particularly those where flood insurance is no longer available. To guard against property devaluation due to environmental threats, look for homes that are built to withstand harsh weather conditions and flood risk.
Rental Outlook
Demand for beachfront property to rent is high and shows no signs of decreasing in the foreseeable future. With the increasing popularity of working from home, expect a strong rental market for homes on the ocean. If you’re looking for a home you can rent out, check local regulations and HOA rules to make sure rentals are permitted.
Emerging Beachfront Property Markets
We all know about the stunning beachfront properties you can find on Florida’s Atlantic Coast, Southern California, and New England, but if you’re looking for something new where inventories might be higher and prices are lower, there are plenty of great options.
Great Lakes Locations
The shores of the Great Lakes feature many beachfront communities that can offer you a tranquil getaway and clear, beautiful views. In the wintertime, these homes can make a cozy hideout that’s peaceful and calm. Grand Haven, MI, and Erie, PA, are two vastly underrated locations on the Great Lakes. These locations are increasingly popular with renters who want to escape the hotter temperatures of the American South and Southwest.
Alabama and Mississippi
These states may not immediately spring to mind when you think “beachfront,” but these emerging areas feature warm weather year-round, pristine beaches, lively music festivals, and a strong rental market. Look for opportunities in Gulf Shores, AL, and in the Bay St Louis area of Mississippi.
Florida’s Gulf Coast
The Gulf Coast of Florida has many charming waterfront communities where you can enjoy the sunshine all year long without dealing with the high traffic of popular Florida tourist destinations. The Tampa, Fort Myers, and St Petersburg areas all have numerous waterfront properties for sale at reasonable prices.
International Markets
Don’t overlook the allure of a beachfront property in Central America or Europe. Colombia, for example, has many wonderful seaside opportunities for home ownership that come with lower prices and more affordable operating costs. Cartagena is very popular with international tourists, making it a great investment opportunity. Santa Marta, also in Colombia, is a destination of choice for domestic tourists and features a spectacular 12 miles of coastline.
Is now a good time to buy beachfront property? If you’re financially prepared and you’ve done your research, including running the numbers and visiting communities you’re interested in, now could be the right time for you. While home prices remain high, there are plenty of opportunities if you’re willing to think outside the box. Be sure to work with a knowledgeable real estate agent who can guide you through your choices.
