Coastal properties have long been considered an attractive investment, and in 2025. This trend is expected to continue as more people seek out the tranquility and beauty of beachside living. But why it’s that? And what are the Top Beach Locations for Buying Coastal Property?
No worries, you don’t need to do all the research. Cause we did it for you. Just go through this article, and you will have all the answers.
Why Invest in Coastal Property?
Investing in coastal property is often seen as a smart move. In fact, according to the National Oceanic and Atmospheric Administration (NOAA), the value of coastal properties in the U.S. has risen significantly over the past few decades.
Coastal real estate accounts for around 40% of the U.S. housing market. So, why is this the case?
This is largely due to the high demand and limited supply of beachfront locations. There’s only so much coastline available, which drives up property values. According to Zillow,
Properties in popular coastal regions are often sold well above the asking price due to this scarcity. Additionally, coastal properties offer excellent rental income potential.
Airbnb data reveals that vacation rentals in coastal areas can yield up to twice the rental income compared to inland properties. With some regions like the Outer Banks or Hawaii generating $50,000 to $200,000 per year.
All in all, coastal properties offer strong appreciation, high demand, and solid rental returns, making them a compelling investment.
Top Beach Locations for Coastal Property Investment
Delaware
Delaware’s coastal towns, particularly Ocean City, have seen significant growth in real estate values. According to the Delaware Economic Development Office, the real estate market along Delaware’s coast has been appreciating at an annual rate of 5–7%.
The state also boasts some of the lowest property taxes in the U.S., which makes it particularly attractive for investors looking to reduce their overhead costs. The steady demand for vacation rentals and second homes further fuels the growth of this market. Besided, Delaware's vibrant communities and affordable living options contribute significantly to its appeal as a prime location for settling down.
Florida Keys, Florida
The Florida Keys offer an excellent location for luxury beach properties with consistent rental income potential. Real estate prices in the Keys have appreciated by 6–9% annually over the past 5 years. This growth is driven by high demand from affluent buyers seeking second homes and vacation rentals.
According to the Florida Keys & Key West Realtor Association,
Property sales in the region increased by 8% in 2023, with an average selling price of $1.4 million for oceanfront properties.
Maui, Hawaii
Maui remains one of the most attractive beach destinations for investors. With its consistent appeal as a luxury vacation destination, Maui's beachfront properties have seen annual price increases averaging 7%.
According to Hawaii’s Department of Business, Economic Development, and Tourism (DBEDT), Maui’s real estate market has experienced an average price increase of 5.5% over the past year.
Properties in areas like Wailea and Kaanapali have been particularly lucrative, offering high rental yields and long-term value growth.
Cape Cod, Massachusetts
Cape Cod offers a mix of charming beach cottages and high-end properties with steady price appreciation.
The Cape Cod & Islands Association of Realtors reports that median home prices in Cape Cod rose by 6% in 2023, with waterfront properties seeing even higher increases. The area’s real estate market benefits from its popularity as both a vacation destination and a second-home market, ensuring sustained demand and appreciation.
Nantucket, Massachusetts
Nantucket is known for its exclusivity, and properties here are among the most expensive on the East Coast. The island’s real estate market has appreciated by an average of 8% annually, with luxury homes frequently breaking records for prices.
According to the Nantucket Association of Real Estate,
Waterfront properties on the island have increased in value by over 10% in the last two years alone.
This growth trend is expected to continue due to limited land availability and strong demand from high-net-worth individuals.
Charleston, South Carolina
Charleston’s coastal properties have shown impressive growth, with the average home price rising by 7% year-over-year in 2023. Areas like Folly Beach and Isle of Palms have seen property prices jump by 8% as more people seek homes that offer both historical charm and beachfront access.
Charleston's strong economy, rich history, and proximity to popular vacation spots make it a solid investment location. According to the Charleston Trident Association of Realtors, the city saw a 5% increase in vacation property sales in 2023.
Galveston, Texas
Galveston offers a more affordable coastal option compared to other areas in Texas. With an average annual property appreciation rate of 4–6%, Galveston has become increasingly popular for investors looking for affordable beach homes.
The area has experienced a surge in tourism and second-home buyers, with the Galveston Island Convention & Visitors Bureau reporting a 12% increase in tourism revenue in 2023.
For those looking for a balance of affordability and strong rental income, Galveston is an excellent choice.
Outer Banks, North Carolina
The Outer Banks is a favorite for beachgoers, and it offers a range of investment opportunities, from small beach cottages to large oceanfront estates.
According to the Outer Banks Association of Realtors,
Real estate prices here have risen by 5–7% annually over the past five years. It is driven by increased tourism and a steady stream of seasonal renters.
The region's relative affordability compared to other East Coast locations makes it a great option for investors looking to capitalize on the growing demand for vacation rentals.
Outro
The coastal property market in the U.S. has continued to grow, with beachfront real estate appreciating at an average rate of 6–8% annually.
As the demand for beach properties shows no signs of slowing down, 2025 offers an exciting opportunity for investors looking to capitalize on coastal real estate.
With consistent growth and attractive returns, investing in a beach property could be a wise choice for those looking to diversify their portfolio and enjoy the beauty of oceanfront living.
