The global pandemic has caused millions of Americans to reconsider where they live. Working habits have changed, and an increasing number of people are seeking out a change of scenery. As a consequence, house prices hit record highs in early 2022.
With this in mind, home warranty company, American Home Shield® wanted to find out how a property’s view can affect its value. We’ve analyzed house prices in all 50 states to discover whether particular scenic views add a premium to the cost of a home, highlighting the locations where you will pay the highest premium for your outlook.
Key Findings
- A waterfront view increases the value of a property by an average of 78.1%, with a 225.2% surge for lakeside views in landlocked Wyoming.
- Homes with a city view divide Americans, adding to the value in 21 states but decreasing in 22. The largest increase was in Arizona (102.5%).
- Homes overlooking nature have an average premium of 44.2%, with views of Wyoming’s stunning scenery costing buyers an average of 140% more.
Looking for a Home with a City View? Choose Wisely
With house prices surging at record rates, can Americans still afford to live in cities? Across the country, our data reports an average cost of $504,711 for homes with an urban vista. However, five states have a premium of more than $1m. California is the most expensive of these, with a mean of $1,624,585.
House prices in California continue to rise, with the median value hitting $758,990 across the state in 2021. You can expect to pay double if purchasing in a San Francisco zip code, where prices sit at over $1.5m.
Meanwhile, house buyers looking for a city view on a budget should consider investing in Michigan. With an average home costing $97,384 with a city view, according to our data, there are certainly some bargains to be had in the Mitten State.
Homes Overlooking Nature Cost a Third More than Urban Views
A recent Gallup poll found that 48% of Americans would prefer to live away from cities, up 9% from 2018 before the pandemic.It’s no surprise then that our research found a premium on homes with a view of nature. Properties cost an average of 33% (or $167,340) more than those overlooking a city. Those wanting affordable green space should look at Indiana, where the mean value of homes in nature was $281,457.
A growing body of research supports the idea that immersing yourself in natural surroundings can have long-term health benefits - including stress reduction, increased self-esteem and calmer emotions. Following the global pandemic, property experts have noticed a shift in buyer interest towards rural homes, with searches for out-of-town zip codes surpassing urban ones.
A home with a view of the great outdoors can hugely impact a property’s value in some states. Our research shows that house prices in Montana doubled when in nature ($1,020,780) compared to a city view ($501,247).
Waterfront Homes Surpass $2m Average in Wyoming and California
A waterfront property can feel like a permanent vacation. With views overlooking the lake, harbor or ocean, these homes are among the most desirable on the market, and buyers pay a premium for them.
Two states, Wyoming and California, have homes by the shore averaging higher than $2m. With stunning views of the Teton Mountains and acres of open space, Wyoming’s houses ($2,733,918) surpass those of California ($2,359,912) and Nevada ($1,890,821).
Despite having the least amount of water-covered land of any US state, shorefront properties in West Virginia have the cheapest mean value, costing just under $300,000 per home.
Homebuyers naturally pay a premium for properties with a water view. Some bring with them the added expense of boat mooring fees, and insurance premiums can be higher if a flood risk is evident.
Wyoming has seen a surge in luxury homes in recent years as affluent developers and buyers flock to its pristine natural environment. A 55-acre property in Jackson, WY, recently became the state’s most expensive listing, worth $65m.
City Views in Arizona Double the Value of Homes
When looking at the average premium placed on a home with a particular view, our research shows that a city view increases the value of a property in 21 states but decreases it in 22 others.
Homebuyers searching for an urban outlook in Arizona will have to pay more than double (102.5%) the average house price. The state’s largest city Phoenix has among the fastest-rising property values in the country.
However, a city view in Michigan significantly decreases a property’s value, lowering prices by 55%. While homes are the most expensive they’ve been since 2003, buyers in the state are evidently put off by urban living. Oklahomans are similarly dissuaded from city life, with a 42% drop in prices in the state.
