The Cost of a Scenic View Across the United States

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 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.

AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.