Given a relatively inelastic supply of locations with coastal water views, the price of a water view is likely to rise during housing market upturns and fall during downturns. Using 25 years of data and more than 20,000 home sales for Bellingham, Washington, this study uses the hedonic methodology to estimate water view premiums over different phases of the housing cycle. Views are differentiated both by scope and by distance from the water. Results show real dollar premiums associated with water views move with the housing cycle, rising when housing demand and overall market prices increase and falling when the overall price of housing declines. In addition, the relative value of a view fluctuates as well.



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