The FINANCIAL -- SEATTLE, July 10, 2018 -- The premium for living on the water isn't as high it used to be.
Homes along the water sold for a 36 percent premium in the first quarter of 2018, according to a new Zillow analysis. The extra cost for waterfront living is at its lowest level since the second quarter of 2002, and below the average premium since 1996 of 41 percent.
Across the country, waterfront homes tend to have higher prices than similar homes in the same area, but the gap has closed over the past several years. The typical U.S. home has more than recovered from the recession, but waterfront homes have not.
Zillow defines waterfront homes as those where the homeowner can get to the water's edge, whether it is a lake, river, or ocean, without leaving their property. This analysis compares sale prices for waterfront homes with homes in the same metro that have similar physical features, but do not have waterfront access.