How Much Does A Water View Increase Your Home Value?

Chances are you've probably fantasized about waking up in a gorgeous beachfront home overlooking the crashing waves or sipping coffee in a lakefront house, gazing out at the calm water. There's no question that having a water view is a perk many people would love to have. But how much is it actually worth? The answer: a lot. While the exact premium depends on several factors, on average, the appeal of a waterfront property can boost a home's value by nearly 80%.

It's no secret that waterfront properties command the highest price tags. Not only do these homes offer beautiful views, but they also tend to come with other perks as well, such as access to recreational activities like boating, fishing, swimming, or surfing. There's also an exclusivity factor — there are a limited number of waterfront homes – and they tend to appreciate well over time. Waterfront properties can also be a good source of income, since gorgeous beach houses you can rent on Airbnb are in high demand. A 2022 study by home warranty company American Home Shield (AHS) that analyzed the impact of views on home values, found that waterfront homes increased property values by an average of 78.1%. "Anyone who has sat on a beach or stayed in a waterfront house can attest to the near medicinal effects of the sound of lapping waves and seagulls," Robin Kencel, a real estate agent with Compass in Greenwich, Connecticut, told Bankrate, adding, "Waterfront properties are typically those that see the highest appreciation."

Unsurprisingly, the top three most expensive places to live in the U.S. are all California beach towns, with Newport Beach on top of the list. But while ocean view properties are typically more expensive, river or lake view properties appreciate just as well, and don't see as much damage over time. According to the AHS study, among the 10 states with the highest average prices for waterfront homes, six were landlocked. In Wyoming, the premium on waterfront properties was a staggering 225%. Meanwhile, Lake Tahoe, which straddles both Nevada and California, is flush with mansions valued at tens of millions of dollars, including a luxe lakefront property that comes with its own tram. But a study by Lake Homes Realty discovered that the most expensive lake homes in the U.S. were found along a lesser-known body of water — Michigan's Walloon Lake — where the average home price is $6.44 million. 

Various factors can affect how high a price a property can fetch, including the view, risk of flooding, water access, and overall condition of the home. Homes that are safe from flooding or erosion can be worth 15% to 25% more than properties where flooding is a greater risk, and those that are in good condition can go for 10% to 20% more than homes that need work, per Nicola. And of course, there's a price difference between waterfront or simply water view. A home with an unobstructed view can boost the value by 30% to 50% more than a home that has a partial or obstructed view, according to George Nicola from architectural rendering and interior design firm Tallbox. For water view homes that aren't waterfront, the value increases if there is public access to the water.