Does an Ocean View Add Value in San Diego County?

Does an Ocean View Add Value in San Diego County?

Short answer: yes, in many cases an ocean view does substantially increase property values in San Diego County. But how much it adds depends on a lot of factors: distance from the water, how unobstructed the view is, elevation, whether it’s oceanfront vs just a view, neighborhood prestige, risks (sea‐level, noise, etc.), and so on.

Below is a breakdown of what the research and market data suggest.

What Studies Tell Us: The Coastal Premium in San Diego

One particularly relevant study is “An Estimation of the Coastal Premium for Residential Housing Prices in San Diego County” (2009). In that study:

• The authors looked at ~9,755 home sales in 2006, controlling for structural and locational factors.
• They found that homes very close to the coast had large premiums: for example, homes within 500 feet of the coastline were about 101.9% more valuable than similar homes more than six miles from the coast.
• The premium dropped off rapidly with distance. Between 500-1,000 feet distance, premium was about 62.8%; between 1-2 miles, about 21.3%. Beyond 6 miles, the “coastal premium” largely disappears.

So, proximity to the ocean (or the coast) clearly has measurable value in the San Diego market, especially for homes that are very close or have unobstructed views.

How Big Is the Premium, Generally?

Other data points help us understand typical premiums for ocean or water views, though not always specific to San Diego.

• A California‐wide study (from The Real Deal) found that buyers paid on average about 15% more for homes with ocean views compared with homes “close to the water but without the view.”
• Another report (LA Focus, citing multiple California cities) puts San Diego at around a 34% premium for homes with ocean views, for homes priced around $1.4 million — i.e. buyers in that price range are often willing to pay ~$361,000 more for view vs no view.
• At the high end (luxury oceanfront in Del Mar, La Jolla, etc.), the price per square foot for oceanfront homes can be quite high ($4,000-$6,000/sq ft in Del Mar for oceanfront). Homes with sweeping ocean views (not necessarily beachfront) also command premium pricing.

What Affects How Much Value an Ocean View Adds

Here are some of the key levers that influence how much premium a view gives:

What “Ocean View” vs “Oceanfront” vs “Near the Ocean” Mean

It’s useful to differentiate these:

• Oceanfront: direct contact with beach or coastline; typically highest premium.
• Ocean view: view of the ocean from the property, which may be elevated or set back, possibly partially obstructed.
• Near the ocean / coastal proximity: physically close to the coast but may not have direct view, or views may be blocked.

The premium tends to be highest for oceanfront, followed by ocean view, then just proximity. The San Diego study showed that even being near but not directly at the ocean has value, but the premium drops steeply with distance.

Recent Market Examples

• Homes in Ocean Beach have median values over $1.2 million, reflecting both demand for proximity to ocean + views.
• Del Mar oceanfront homes have sold in very high price ranges (e.g. ~$18.9 million for a ~2,700 sq ft beachfront home) in recent times.

These provide concrete illustrations of how ocean views (and especially oceanfront) push prices into luxury territory.

Caveats & Things to Watch Out For

While ocean views often help, they don’t guarantee “maximum upside.” Here are some caveats:

• Obstruction risk: New development, tree growth, zoning changes above the property could block views in future; that risk sometimes shows up in pricing.
• Climate / regulation risk: Coastal erosion, rising sea levels, stricter building codes (for flood zones, wind, etc.), higher insurance costs, and view‐blocking buffer zones can all hurt value or increase ownership cost.
• Maintenance / wear & tear: Salt air, moisture and storms can increase maintenance, corrosion, landscaping challenges, etc. That adds cost. Buyers might discount for that.
• Buyer preference variation: Not every buyer values views equally. Some buyers care more about interior, layout, amenities. Also, view features may come at expense of lot size or other features.
• Diminishing returns: After a certain point, further “improvement” in view might add less and less. For example, moving from a partially obstructed view to fully unobstructed adds value, but once it’s already oceanfront with panoramic views, incremental improvements (bigger windows, nicer finishes) might show smaller percent gains.

What This Means for Buyers and Sellers

For Sellers:

• If you have an ocean view (or could create/improve one via landscaping, window placements, decks etc.), it’s very likely worth investing in staging to highlight the view.
• Make sure view is well documented, get photos, ideally produce comps (“comparable homes”) with and without views.
• Be aware of costs (insurance, maintenance) that a more sophisticated buyer may factor in — get ahead of those.

For Buyers:

• Be willing to pay the premium only if the view is important to you, because you may be paying substantially more.
• Consider future view risks (new construction, trees, zoning).
• Assess ongoing costs (insurance, exposure, etc.).
• Compare similar homes (same neighborhood, lot size, square footage) with and without view to see whether the premium is reasonable or inflated.

Conclusion

In San Diego County, an ocean view (especially if unobstructed, close to shore, elevated, and in a desirable neighborhood) is a powerful value booster. The “coastal premium” can be very substantial — over 100% more in some cases for homes immediately adjacent to the coast, dropping off steeply with distance. But it’s not a free lunch: risk, cost, and buyer preferences can mitigate how much of that premium is realized.

If you like, I can pull together some recent comps (homes sold in San Diego County in the last 12 months) comparing with/without ocean view to see current real premiums — might help you see what’s realistic right now. Do you want me to assemble that?

Steve Cardinalli
Real Estate Professional, 01323509
(760) 814-0248
Steve@Cardinalli.com
www.Cardinalli.com
Century 21 Affiliated Fine Homes & Estates
Village Faire in Carlsbad Village
300 Carlsbad Village Dr, 223
Carlsbad, CA 92008

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