The Value of Waterfront Property

by Rich Barnhart

O

wning waterfront property can be a
very rewarding experience, but is it

worth the price? For true water
enthusiasts the premium paid for the
waterfront lifestyle is well worth it.
Personally I can’t imagine living
anywhere else and the lifestyle that we
enjoy in neighborhoods like The Landings
and Bay Colony is absolutely priceless.

However, as prudent investors we must rationalize our
lifestyle every once in a while, so please allow me to
provide you with some thoughts about the true value of
where we live.

Most of us who purchase real estate allow our emotions to
enter the equation and this is especially true for buying a
home on the water. Perhaps it’s the serene views over our
protected waterways, or maybe it’s the calm canal breezes
we enjoy beginning with the winter trade winds and

ending with the water gently
lapping at our docks. And then
there’s the wildlife that shares our
waterfront sanctuary; from the
occasional manatee munching sea
grass in Landings Inlet to the flocks
of ibis grazing along Bayview
Drive, to the mullet splashing in
the canal and the lone egret
sipping water from our swimming
pools. And for the boaters it
doesn’t get much better then
stepping out back to tinker with
your favorite toy. For most of us
this is all the value we need, but
here are the facts anyway.

What is waterfront property 
really worth?

For starters, we’ve all heard the old saying “they just don’t
make waterfront property anymore”. As demand for
waterfront property increases and supply remains flat, we
would expect waterfront prices to increase more than non-
waterfront, which is exactly what has happened over time.

According to a recent study by Zillow, the median value of
waterfront property 2 decades ago was 64 percent more
than the median value of all homes nationwide. Today, that
difference has grown to 116 percent.

In our local market of Northeast Fort Lauderdale (East of
US-1) the premium for waterfront property since the peak is
about 140 percent. This is great value when compared to
all of Fort Lauderdale and Broward County which carry a
premium of 154 percent and 163 percent respectively. The
other good news is that our local waterfront market has
recovered nicely from the bubble of 2007, almost keeping
pace with the non-waterfront recovery. In contrast, other
waterfront markets across the country have recovered less
quickly, further demonstrating the relative strength of the
South Florida markets. I suspect that as the recovery
continues, especially for higher end homes, the median
price increases of waterfront property will surpass those of
our non-waterfront neighbors. Even if I’m wrong, at least
we get to see a manatee every once in a while.  

I

Rich Barnhart
Landings Resident and Broker/Owner 
By the Sea Realty, Inc

223 Commercial Blvd.
Lauderdale-by-the-Sea, FL 33308
(Corner of Commercial & Sea Grape)
954-351-7007
www.bythesearealty.com

Real Estate

NE Fort Lauderdale Median Prices

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

2006

2007

Waterfront Median Price

Non-Waterfront Median Price

2008

2009

2010

2011

2012

2013

2014

The Landings & Bay Colony

20