Waterfront homes pricey, especially in Barrington

If your dream is to someday live by the sea, be ready to pay double compared to what’s available in the same community inland – or even more if you shop in Barrington.
Waterfront homes in the Providence suburb command a premium 218 percent above the median value of homes located inland, according to an analysis released last month by Zillow, the online real estate database. That’s the highest in state.
Zillow also asserts that in some coastal towns, the waterfront premium is much less. In East Greenwich, for example, the figure is just 6.7 percent. Nationally, the premium for waterfront homes is 116.1 percent, according to the website’s study.
The highest waterfront premium in the study is Riviera Beach, Fla., at 1,154 percent. Dartmouth, just over the border in Massachusetts, was eighth on the list of waterfront homes with the highest premiums, at 488 percent. Zillow’s analysis was limited to the top 250 communities nationally based on population and with at least 100 waterfront homes.
The Barrington premium has some Ocean State real estate brokers scratching their heads.
“It frankly surprises me,” said Susan Arnold, CEO for the Rhode Island Association of Realtors. “I would question those numbers. The most expensive waterfront homes selling lately have been in Newport.”
Paul Leys, owner of Gustave White Sotheby’s International Realty in Newport, agrees.
“I would tell you Newport and Watch Hill in Westerly are more expensive,” he said.
Leys offers some figures from the site www.riliving.com to prove his point. Rhode Island brokers have sold 133 waterfront homes so far this year, he says. The highest price paid has been $8.6 million for a Watch Hill property.
Sally Lapides, president and CEO of Residential Properties Ltd., which has an office in Barrington, is less skeptical. She notes Barrington has qualities that can’t be found elsewhere.
“Being 11 miles outside the capital city makes a difference,” Lapides said. “Barrington is an easy commute for professionals who work in Providence. They also have a top-rated school system. And Barrington homes often have more acreage than most waterfront properties elsewhere.”
Lapides points out other shoreside towns offer different attractions, and that can affect home prices. “East Greenwich has great schools, too, but it’s a longer commute,” she said. “And there’s been more new construction in East Greenwich. Some people prefer historic homes. And Newport is mostly a summer community, so it attracts a different kind of buyer. It’s a fabulous city, but it’s very busy during those summer months, so you have to love city living.”
At Zillow, economist Skylar Olsen said that, “In Barrington luxury homes are placed on the waterfront. In other towns, there’s more of a mix.”
The Zillow report, she adds, tracks a nationwide trend: Waterfront living is becoming more costly every year, and for the most part, only the wealthy can now afford a home by the sea.
“Looking back to the ’90s, waterfront premiums were half as much,” Olsen said. “It’s widening over time. It’s impossible to increase the amount of shoreline. The supply is limited.”
Natural phenomena like hurricanes and global warming – which forecasters warn will raise ocean levels – have not discouraged the trend. “Yes, damage can happen,” Olsen said. “But Americans are tenacious with their desire to live on the water. For most of us, that dream is a pricey endeavor. If you’re living on the water, it’s because you can outbid others.”
Rhode Island brokers aren’t alone is questioning Zillow’s local accuracy. The site claims to have data on more than one million homes across the country, including estimated values. But critics say Zillow ignores many factors, including the condition of a home, privacy, traffic and noise.
“They make it frustrating for those of us who work with buyers,” complained Leys, who specializes in selling luxury homes. “People look on Zillow for estimates, and very often they’re way off.”
Others point to the report’s upside.
“There’s only so much waterfront, and it’s very coveted,” Lapides said. “That means most of us will never get to live on the water. But those prices bring up the value of other homes nearby, so everyone in the town benefits. It boosts the tax base, too, and the schools get more money from those higher assessments.”
For the record, Barrington, Newport, and East Greenwich fall in the same range for per capita annual income. In Barrington the figure is $35,881; in Newport, $35,644; and in East Greenwich, $38,593. •

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