Why Are Some Beach Houses Expensive?

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If you’re purchasing your first home, there are a lot of factors to consider before settling down, the most important of which is the location. Many people look to beachfront properties as the end-all, be-all of houses.

But, houses located near the water tend to boast exorbitant prices. Why is it that houses on the beach cost so much more than a house that’s a bit more landlocked? Here are just a few of the reasons why.

It’s a desirable location. Many people love the fact that if they want to leave their house and spend the day at the beach, a beachfront house allows them to just walk the ten feet to the sand. In fact, they’re even willing to pay high prices for it.

Supply and demand. Think back to your high school economics class, to the units on supply and demand and scarcity. There’s a lot of demand for beachfront property, and only so much possible supply.

The limited coastline means there’s only a limited amount of space on which to build a house, making them scarce when compared to other homes. Because there are so many people looking to buy a house on the beach, there has to be a way to cut back on the competition. These are where those sky-high prices come in.

Making waterfront property so expensive cuts back on the number of people who are able and willing to make the purchase, leaving behind only the people who are willing to sign the check.

It becomes a positive feedback loop. Because these properties are already expensive, many people choose to wait until they have more money saved up. This means that once they’re ready to buy, they want the highest quality of house possible.

This is why so many of the beaches houses that you see are luxury homes. Special amenities make that sale that much more enticing. This creates a cycle that circles through luxury and location, making it difficult to find a cheap house on such a prime piece of real estate.

Higher startup costs. Hurricane and other water damage can wreck a home. And while sand might be a good exfoliant for your feet as you walk along the beach, it’s terrible for the outside of your home! Repairing sand damage can cost a pretty penny.

Many modern beach houses are starting to be built with extra protection to mitigate some of the issues that come along with living on the beach. This doesn’t come cheap. In fact, adding increased durability to your home can be extremely expensive, and this leads to a high price tag a lot of the time.

If you decide to live on the beach, don’t be too shocked at the price tag! It might be steep at first, but once you consider all of these factors and many more, choosing to live on the beach can be a great way to live!

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