Potentially Unsold Beach Houses — Take a Look at the Prices!

(Europe + USA, August 2025)

Below is a no-hype look at where unsold (or slow-moving) beach homes are showing up, what typical prices look like right now, and the big factors—insurance, climate risk, and local rules—that are moving those prices.

The quick market snapshot (Aug 2025)

United States: Existing-home inventory sits at 4.6 months’ supply nationwide (July 2025), with 1.55M unsold units—up from a year ago. Median sales price: $422,400. (National Association of REALTORS®)
Florida, a bellwether coastal state, shows rising for-sale inventory (record highs earlier in 2025; still up YoY in July). (Redfin)
Buyer leverage is also visible in cancellation rates: July 2025 saw 15.3% of pending deals fall through—the highest July since 2017—concentrated in Texas and Florida. (Investopedia)
Europe (selected coastal markets):
In Spain, second-home prices on the coast rose 12.1% YoY in Q1 2025 to €2,970/m² (tight supply in prime zones keeps many listings moving fast). (Tinsa)
In the UK, more homes have hit the market in 2025—especially in southern/coastal areas—slowing price inflation and lengthening time-to-sell in some towns. (The Times)
Portugal’s national appraised values are still trending up (INE data), with coastal Algarve averages around €3,467/m² cited by market analysts. (Global Property Guide, propertymarket-index.com)
In Italy, there are still 100+ coastal municipalities with average asking prices under €1,000/m²—but most are in the south and often not prime “postcard” beaches. (Idealista)

Why some beach houses linger unsold

Insurance sticker shock (U.S.): Premiums have climbed sharply in storm-exposed states, and some insurers have pulled back. The U.S. average premium is roughly $2,470 (2025), but storm-belt states are far higher (e.g., Florida and Louisiana). Florida’s last-resort insurer Citizens still has ~770k policies in force, showing private-market strain. Rising insurance costs can push buyers to negotiate hard—or walk—pressuring list prices. (Axios, Public)
Climate-risk repricing: Analyses projecting long-run insurance-driven value erosion (e.g., First Street Foundation’s 2025 work) are making buyers more selective in flood- and wind-exposed zones. (assets.riskfactor.com, Center for American Progress)
Rates, repairs & STR rules: Higher financing costs, deferred-maintenance on older coastal homes, and stricter short-term-rental regulations in some European hotspots all slow velocity and keep “less turn-key” homes on the market longer. (Regulations vary by city—check local rules.)

What are buyers actually paying? Price bands & examples

Important: These are recent medians/averages and broad market stats—actual prices vary listing-by-listing.

United States

Affordable beach towns, 2025: Realtor.com’s latest list highlights places where entry pricing is still accessible (e.g., Atlantic City, NJ landing among the top affordable beach towns, with median list prices well under $250k). (Realtor, ACNJ)
Select “livable” beach towns (median prices from 2025 features):
Chincoteague, VA ~ $642k; Myrtle Beach, SC ~ $637k; St. Augustine, FL ~ $574k; Rockport, TX ~ $550k (illustrative medians, July–Aug 2025 reporting). These are not the cheapest, but show where mid-market buyers are transacting. (Travel + Leisure)
Florida inventory: Redfin shows homes for sale up 8.5% YoY in July 2025 and earlier record-high inventory in January. More choice = more negotiating room in some coastal submarkets (especially for dated properties and condos with high carrying costs). (Redfin)

Takeaway (U.S.): If you want value, look past trophy ZIP codes toward secondary/coastal-adjacent towns (parts of the Gulf Coast in TX/MS/AL, mid-Atlantic, and northern Pacific Coast). Use insurance quotes as a price lever when a home has been sitting.

Europe

United Kingdom: Rightmove reports sea-view premiums of ~32% (avg. +£88,106) over other coastal listings, but also publishes cheapest seaside locations where asking prices can sit close to £120k–£160k. More supply in 2025 has slowed inflation in many southern coastal areas. (Rightmove, The Times)
Spain: Despite the “bargain-hunt” narrative, coastal second-home values are up +12.1% YoY (Q1 2025) to €2,970/m²—with prime Costa del Sol and Balearic pockets far higher. Entry-level deals exist, but they’re typically farther from marquee beaches or need updates. (Tinsa)
Portugal: A national upswing persists; Algarve averages circa €3,467/m² in 2025 in analyst reporting (prime new builds can be much higher). (propertymarket-index.com)
Italy: There are low-ticket coastal municipalities (sub-€1,000/m²), mainly in the south or smaller towns—great for budget hunters willing to renovate. (Idealista)

Takeaway (Europe): The real “unsold” opportunities tend to be non-prime coasts (Adriatic and Ionian sides outside the hotspots, parts of southern Italy, northern Spain’s smaller towns, and some UK North Sea/Irish Sea locales). Expect trade-offs on commute, amenities, or refurbishment.

A simple playbook for spotting value in “unsold” beach listings

Track time-on-market & reductions. In the UK, major portals show where supply has risen and price growth cooled—use that to shortlist targets. (The Times)
Price-to-rent math (esp. Europe): In Spain’s coast, gross yields can be healthy in select towns, but hot zones are pricey; model net yield after local STR rules, taxes, and condo/HOA costs. (Yields vary by town; check municipal rules.) (Cinco Días)
Insurance first (U.S.): Get bindable quotes early—coastal premiums and deductibles can swing total cost of ownership by thousands per year, and insurers may limit wind or roof coverage in certain ZIPs. Use state “insurer of last resort” enrollment stats (e.g., Florida Citizens) as a caution flag. (Axios, Public)
Flood & wind risk diligence: Pull parcel-level flood/wind projections (e.g., RiskFactor/First Street) and combine with FEMA maps and elevation certificates to understand future insurability and resale. (firststreet.org)
Budget for remediation: Older coastal homes often need roof, window, elevation, or corrosion remediation to meet code/insurer standards—factor this into offers.

Where prices may have room to bend

Florida condos (select buildings) & dated beach cottages: Inventory and higher carrying costs (insurance + HOA) can lengthen DOM, creating negotiation windows—especially where buyers canceled contracts in mid-2025. (Investopedia, Redfin)
UK southern coasts (non-prime streets): More listings and slower growth in 2025 improve buyer choice; watch for “reduced” flags. (The Times)
Southern Italy & secondary Spanish coasts: Entry prices are lower, but renovation and permit timelines vary—great for patient buyers who want value. (Idealista, Tinsa)

Bottom line

“Unsold” beach houses aren’t uniformly cheap—but more choice in parts of the U.S. (and cooling pockets of Europe) means more negotiating leverage on listings that need work, have high insurance/HOA costs, or sit just off prime sand. In true hot zones (Costa del Sol, Algarve, Balearics, select UK sea-view streets), prices remain firm—so be ready to trade location for value, or value for location.