Philadelphia Chapter October Meeting!
- Shore home prices continue to rise, but performance varies by town. The presentation reports positive 2026 year-to-date appreciation across all study markets, with stronger growth in premium barrier-island communities.
- There is no single Jersey Shore market. Average 2025 sale prices ranged from approximately $254,000 to $3.2 million across the markets studied. Town, neighborhood, and property type matter far more than a Shore-wide average.
- Scarce supply continues to support values. Many Shore communities see only 2%–3% of their housing stock sell annually, compared with approximately 4% nationally. Limited turnover also makes resale timing and buyer demand important.
- Affluent, nonresident buyers play a major role in pricing. Second-home demand draws on wealth and existing equity beyond the local economy. The cited mortgage analysis found 75% of vacation-home mortgages went to buyers age 45 or older.
- Rental potential and investment returns differ substantially. Some lower-priced markets offer stronger gross rental revenue relative to property values. Luxury communities often attract buyers seeking lifestyle and prestige. Rental income must be evaluated after expenses, seasonal demand, rental restrictions, and personal use.
- The full cost of ownership is the real affordability test. Financing and taxes can create substantial annual obligations before adding insurance, maintenance, utilities, and association fees.
- Flood exposure and elevation increasingly influence value. Gillen emphasized evaluating each property’s flood history, elevation, insurance costs, and potential association assessments alongside its location.
- Ocean proximity commands a significant premium. The analysis showed a steep relationship between beach distance and price per square foot. Precise location matters when selecting comparable sales.
- Older, underbuilt properties can hold redevelopment value. The model identifies properties with full ownership of the land and building, an age of at least 50 years, and a floor-area ratio below 0.35 as potential redevelopment candidates. These still require zoning, construction-cost, flood, and resale feasibility analysis.
- Property features need careful interpretation. Larger homes generally sell for less per square foot, newer homes receive a premium, and additional bathrooms show diminishing value. Simple price-per-square-foot comparisons can overlook these differences.
The central message: Evaluate the specific property, its local market, intended use, and ownership costs. Gillen’s redevelopment model provides a starting point for deeper analysis—not a guaranteed return or a substitute for an appraisal.
Recent Comments