There’s nothing quite like waking up to the sound of waves crashing outside your window, sipping coffee on your deck with a panoramic ocean view, or having a private path to the sand just steps from your door. Owning a waterfront property is a dream for many – but before you dive in, it’s important to understand both the perks and the potential pitfalls.

Here’s a look at the real pros and cons of waterfront properties, from property value and rental income to maintenance headaches and insurance realities.

The Perks: Why Waterfront Living is So Appealing

1. Higher Property Value

Waterfront homes don’t just feel luxurious – they are worth more, too. According to Zillow, homes with a waterfront view are worth about 78% more on average compared to similar non-waterfront properties. Between the limited supply and high demand, it’s a strong bet that your investment will hold value over time.

2. Higher Rental Income Potential

If you plan to rent out your beachside property – whether short-term vacation rentals or long-term tenants – you could see higher occupancy rates and rental revenue than comparable inland homes. The allure of ocean views and beach access draws consistent interest, especially during peak seasons.

3. Built-In Vacation Spot

If this is your second home, congratulations – you’ve also just secured your favorite getaway. No need to plan your next vacation when your own beachfront retreat is always waiting.

4. Easy Access to Outdoor Activities

From paddleboarding and kayaking to morning runs on the sand, living near the water makes it easy (and tempting) to stay active. It’s the kind of lifestyle that nudges you outside more – whether it’s catching the sunset with your toes in the sand, or building sandcastles with your kiddos. It’s fresh air therapy on demand, and honestly, it’s hard to beat.

The Cons: What to Watch Out For in Waterfront Properties

1. Higher Maintenance

Here’s the not-so-glamorous part: saltwater and ocean air are no joke. They can chew through wood, metal, paint, and even plumbing over time. Think rust, corrosion, and more upkeep than your average inland home. You’ll likely need to stay on top of things with regular maintenance, protective coatings, and, yes – probably a dehumidifier or two to combat indoor moisture and mold risk.

2. Insurance Costs Can Be Steep

Homeowners, Condo, or Landlord insurance premiums tend to be higher for waterfront properties due to the increased risks – especially in areas prone to hurricanes, flooding, or erosion. And some carriers may limit coverage options or have stricter requirements.

3. Flood Insurance May Be Required

If your home is in a designated flood zone (which many beachfront properties are), you’ll likely be required to carry a separate Flood insurance policy. Even if it’s not required, it’s usually smart to have one – because standard policies typically do not cover flood damage.

Check your flood zone and risk – Visit FEMA’s Flood Map Service Center to look up your property by address.

4. Storm Prep and Extra Caution

Living by the ocean can also mean dealing with seasonal storms, hurricanes, or king tides. Depending on your location, you may need storm shutters, reinforced windows, or even to evacuate during certain times of the year. It’s a beautiful view, but it comes with responsibilities.

Learn how to make sure your property is insurable in California here.

Final Thoughts: Waterfront Properties – Worth It or Not?

Owning a waterfront property can be a dream come true, but it’s not a one-size-fits-all decision. Think about how often you’ll use the home, whether you’ll rent it out, your appetite for maintenance, and your budget for insurance, repairs, and flood coverage. If you are up for the challenge, that salty breeze and unbeatable view might be more than worth it.

P.S. Be sure to talk to your insurance broker and get your flood zone details through FEMA before finalizing ANY waterfront purchase.