Waterfront properties are not just a luxury; they’re an investment that consistently shows strong returns. According to recent trends, waterfront homes in the U.S. are valued at more than double that of non-waterfront homes. Nationally, waterfront homes are in high demand, but the premium varies widely depending on the location. In Maryland, with its abundant Chesapeake Bay access, waterfront homes hold a unique value that appeals to both local and out-of-state buyers.
Main Photo Credits: BrightMLS, Mary Jameson Long & Foster
National Overview of Waterfront Home Values
Nationally, the value of waterfront properties has increased substantially over time. While this premium was once as high as 143% over non-waterfront homes in 2007, it has slightly decreased since the housing market crash. As of 2022, waterfront homes are valued 116% more than non-waterfront homes. The difference between these two categories fluctuates with market conditions, but it’s clear that water frontage significantly boosts home prices.
Photo Credits: Zillow
Waterfront homes’ premium is most noticeable in areas with access to oceans, lakes, and large bodies of water. Areas like coastal California and Hawaii top the list for the highest values, with waterfront homes commanding eye-popping prices. But there are also areas where the premium isn’t as high, allowing buyers to enter the market at a lower price point, such as in Florida and parts of the Great Lakes.
Photo Credits: Zillow
Maryland’s Waterfront Market
As a state with a rich maritime history, Maryland’s waterfront homes, particularly those along the Chesapeake Bay and its tributaries, offer significant value. Waterfront properties here often come with unparalleled views, direct access to boating and fishing, and a lifestyle that is second to none.
Price Trends in Maryland:
While nationwide trends reflect an overall increase in waterfront home values, Maryland has seen its fair share of price fluctuation, with high demand in popular areas such as Annapolis, Easton, and St. Michaels, keeping prices elevated. These areas benefit from both their close proximity to major metropolitan areas like Washington D.C. and Baltimore and their natural beauty.
Comparing Maryland Waterfront to National Trends:
Maryland follows the broader national trend where waterfront properties are typically worth more than double the value of non-waterfront homes. For example, in Annapolis, a highly sought-after waterfront area, homes on the water are often valued at $1 million or more, with larger estates or homes with private docks reaching much higher prices. In contrast, similar non-waterfront homes may only fetch around $400,000 to $600,000, showing a significant premium for the waterfront lifestyle.
Top Cities for Waterfront Homes in the U.S.
Across the country, the value of waterfront homes varies dramatically. According to Zillow, cities like Laguna Beach, California, and Honolulu, Hawaii, have some of the priciest waterfront homes. In contrast, areas like Holiday, Florida, and Conneaut, Ohio, offer more affordable waterfront options.
Maryland’s Waterfront Cities:
In Maryland, waterfront properties in Annapolis, Oxford, and Easton are the priciest, with median prices often exceeding $1 million. These towns along the Chesapeake Bay offer residents spectacular waterfront views, proximity to cultural hubs, and access to a host of recreational activities. In contrast, more rural areas along the bay, such as in the southern or eastern shore counties, may offer waterfront homes at lower prices, with values ranging from $400,000 to $600,000 depending on the size and proximity to the water.
The Premium for Waterfront Living
Looking at the difference between waterfront and non-waterfront homes within cities, the premium is particularly high in Maryland’s waterfront regions. Just as coastal California and Florida cities see significant premiums, Maryland markets are no different.
Top Premium Markets in Maryland:
In areas like Easton and Annapolis, waterfront homes can command premiums of more than 100%, reflecting not just the value of the home itself but also the lifestyle it offers. The Chesapeake Bay provides a backdrop that enhances both the aesthetics and desirability of waterfront properties.
Why Waterfront Property Holds Such Value
The value of waterfront homes is not only driven by the aesthetics but also by the limited supply. As the saying goes, “they don’t make waterfront property anymore,” and this scarcity is a major driver of value. The lifestyle benefits of waterfront homes—access to water sports, stunning views, and unique experiences—contribute to their high demand. Additionally, waterfront homes are often used as vacation homes or second properties, further elevating their perceived worth.
Understanding the Value of Waterfront in Today’s Market
While the nationwide trend shows a decrease in the premium for waterfront homes since the market’s peak in 2007, they still remain a sound investment. In Maryland, particularly around the Chesapeake Bay, waterfront properties continue to appreciate steadily due to their prime location, exclusive features, and the timeless appeal of waterfront living.
Pricing Trends in Maryland Waterfront Homes:
- Annapolis: Waterfront homes average above $1 million, often climbing as high as $5 million or more for luxury estates.
- Easton & St. Michaels: These regions offer more affordable waterfront homes, with prices starting at around $500,000.
- Southern & Eastern Shore: These areas offer some of the most affordable waterfront properties, ranging between $400,000 to $800,000 depending on size and location.
Key Takeaways:
- Waterfront homes in Maryland continue to hold strong value, especially in areas like Annapolis, Easton, and St. Michaels.
- The premium for waterfront property is significant, often reaching 100% or more over non-waterfront homes in these regions.
- Maryland offers a range of options, from luxury estates to more affordable waterfront properties in less populated areas.
- As demand for waterfront living continues to grow, waterfront homes remain a valuable investment for both local residents and out-of-state buyers looking for a unique lifestyle.
Whether you're buying or selling a waterfront property in Maryland, understanding these market trends and the premium for waterfront living will help you make informed decisions. If you're ready to explore the options available on Maryland’s waterfront, get in touch today for expert advice and a personalized home buying or selling experience.
