From the coasts of Virginia to the waterways of Florida, properties with boat amenities are capturing the attention of buyers around the country. For this In the Know, we asked Alan Thompson (Managing Partner of The Agency Coastal Virginia) and The Resop Team founder, Chris Resop (The Agency Naples), to dip into what’s propelling this fast-evolving section of the real estate world. Here, they discuss who is seeking estates with nautical features, market predictions and how factors such as remote work flexibility and post-pandemic lifestyle shifts are continuing to impact the desires of buyers and sellers.
Who is buying properties with boat amenities in your region right now?
Alan: In Coastal Virginia, a significant portion of our clientele seeking boat amenities and embracing the nautical lifestyle comprises entrepreneurs and retirees.
We’re also observing a trend among retirees opting to settle in Virginia instead of heading further south to Florida. This shift can be attributed to several factors, including economic impacts, insurance uncertainties, and political considerations. Consequently, we’re witnessing a growing influx of individuals from the Northeast and the West from areas such as San Francisco, Los Angeles, and San Diego, all contributing to the vibrant boating community here in Virginia.
Chris: Interestingly, we’re seeing a diverse mix of buyers gravitating towards properties with boat amenities in our region. Surprisingly, not all buyers are avid boaters; some are captivated by the allure of waterfront living and the panoramic views it offers.
The scarcity of waterfront real estate adds an undeniable appeal, drawing individuals looking at it from an investment perspective—be it for a primary residence, a vacation home, or as part of a strategic real estate portfolio.
Even developers are tapping into this demand by constructing spec homes tailored to waterfront living. It’s a testament to the enduring value of waterfront properties, and the golden rule of real estate —location location location.
What particular boat amenities are garnering interest in your region right now?
Alan: A majority of our clientele is looking for full-time deep water access. We have many tidal communities with inland waterways that don’t offer full-time deep water. So the areas that do offer consistency with deep water, docks, and open water are especially coveted.
Chris: Properties with exceptional views remain unparalleled, followed closely by waterfront access for avid boaters.
For those passionate about boating, properties with ample water frontage are especially appealing, offering space for docks or larger boats. The accessibility of navigable waterways plays a significant role in buyers’ preferences. Some prioritize properties with convenient bridge or Gulf access, while others favor areas with vibrant boating scenes despite higher traffic—such as Royal Harbor and Naples Bay, which offer expansive bay views.
On the other hand, communities like Park Shore, Moorings, and Coquina Sands offer a quieter boating experience along the intracoastal waterways, complemented by convenient lifestyle amenities like dining options and fuel stations.
Heading further south into Port Royal, Royal Harbor, Olde Naples, and Aqualane Shores, buyers encounter public boat slips, private yacht marinas, and a few waterfront dining options. Ultimately, the choice is based solely on the buyer’s lifestyle preferences and favored boating destinations.
The demand for premium waterfront properties remains robust in our community. Properties that excel in key aspects—such as prime location, waterfront square footage, and high-quality finishes—are swiftly snatched up. — Chris Resop
Are there any boat-centric communities that are emerging or established in your region?
Alan: We have several boat-centric communities in Coastal Virginia. In Virginia Beach, a couple of the most coveted are Bay Island, Birdneck Point, Alanton, and Bay Colony.
Norfolk, Virginia offers the convenience of a vibrant urban community, stunning water views and deep water access. Two of the most popular are Larchmont in Norfolk and Lochhaven. Coastal Virginia has over a dozen yacht clubs – however, Cavalier and Norfolk Yacht Club are two of the most sought-after.
Chris: In our region, we’re seeing changes in boat-centric communities due to rising prices, attracting different buyer pools. Waterfront properties with navigable waterways have always been in demand, but after Hurricane Ian, there was a temporary slowdown in buyers.
Homes below flood levels face challenges in selling due to insurance issues. On the other hand, properties above flood levels, whether new or resale, are highly sought after and considered good investments.
How have properties with boat communities evolved over the last few years since the pandemic, and what are buyers seeking in these types of homes now?
Alan: Before the onset of the pandemic, there was a notable presence of older homes situated on deep waterfront properties in our area. However, following the pandemic, we’ve observed a significant increase in the rehabilitation of these properties. Entrepreneurs and families alike have been acquiring these aging homes, sometimes opting for complete teardowns and rebuilds.
Yet, recent trends suggest a shift in preferences among retirees, who are now seeking one-story ranch-style homes on the water. Consequently, there’s been a surge in refurbishing these older properties to modernize them and tailor them to the specific needs and desires of retirees.
Chris: Over the past few years, properties within boat communities, particularly waterfront residences, have experienced a remarkable surge in value. The pandemic played a significant role in propelling our market to unprecedented heights, resulting in decreased inventory—a classic case of supply and demand dynamics.
In terms of overall value, these waterfront and boat-centric properties have seen significant appreciation. Following the pandemic, Florida witnessed a surge in growth, due to its reputation of a better quality of life and year-round favorable weather, encouraging outdoor pursuits. Consequently, both golf and waterfront communities have emerged as focal points for prospective buyers and current homeowners alike, embodying the essence of Florida’s allure.
Boating communities have experienced a remarkable 11% increase in price compared to the average market price. This surge can be attributed to the high demand coupled with low inventory levels. — Alan Thompson
Is there anything noteworthy about properties with boat amenities in your community market right now? Any increase in buyers or renters?
Alan: Boating communities have experienced a remarkable 11% increase in price compared to the average market price. This surge can be attributed to the high demand coupled with low inventory levels. As more buyers seek out the unique lifestyle and amenities offered by these waterfront communities, competition for available homes has intensified, driving prices upwards.
Chris: The demand for premium waterfront properties remains robust in our community market. While buyers now have a broader selection to choose from, properties that excel in key aspects—such as prime location, expansive waterfront square footage, and high-quality finishes—are swiftly snatched up, particularly in the luxury segment exceeding $10 million.
When such properties hit the market, they command attention and sell quickly. We advise against waiting for alternative options, as they may not pop up, or if they do, they might come at a higher price, or the buyer ultimately risks missing out on a coveted opportunity.
Do you have any notable stats or data about this section of the market?
Alan: As previously mentioned, home sales within waterfront communities have surged by 11%, demonstrating the robust demand for these properties. Remarkably, homes in these communities typically spend an average of 28 days or less on the market, underscoring the rapid pace of transactions.
The average price for a deep-water home stands at around $804,000, significantly higher than the average home price in Virginia Beach, which is around $370,000. This discrepancy reflects the premium placed on waterfront living and the desirability of properties with access to deep water amenities.
Chris: From January 1st to April 25th last year, there were 184 Gulf access properties sold in Naples, with an average sale price of $2,338,503.
Comparatively, during the same timeframe this year, there were 194 properties sold, boasting an average sale price of $3,038,850. This indicates a significant uptick in both the number of sales and the average sale price, reflecting an impressive appreciation in waterfront property values of upwards of 20%.
What are your predictions for properties with boat amenities in your region? What can we expect to see this year and into the future?
Alan: As we observe a rising number of retirees, coupled with the increasing flexibility of remote work, I anticipate continued growth in our region. Coastal Virginia is known for its temperate climate, distinct from the intense heat experienced in other retirement destinations. Moreover, our waterfront properties remain significantly more affordable compared to those in other northern regions. With a limited supply of waterfront real estate, prices are expected to appreciate. Notably, areas like Sandbridge in Virginia Beach offer exceptional affordability, further enhancing our appeal to prospective buyers.
Chris: I am optimistic about the future of the market, especially for waterfront properties that consistently maintain their appeal. Looking back at trends, we can anticipate a rise in overall property values. We advise sellers to seize the opportunity to capitalize on their investments and expect a favorable return.
For buyers, the increased inventory offers a wider selection, making it easier to find the perfect property. However, I caution against waiting to see how the market unfolds. While we cannot predict the future with certainty, indications suggest a potential increase in property values. It’s unlikely they will decrease, given the scarcity of waterfront properties. If you come across a property that fits your criteria, I recommend taking action rather than waiting.
For more insight into current market trends and the world’s most dynamic real estate destinations, browse our other recent In the Knows: The Rise of Lake Town Real Estate in Tahoe & Beyond; Today’s Golf Course Home Market, Palm Beach to Palm Springs and Buying Real Estate in Panama, Visas & More.
