Since oceanfront land is so valuable, it is very common for oceanfront homes in fair condition to be torn down for new construction. These costs are not included in the studies, however can be offset by rental income. If a buyer was fortunate enough to purchase an oceanfront property at the bottom in 1992 and sell at the peak of 2006, on average that buyer would have turned each $100,000 into $429,000. If that buyer used a mortgage with 20% down, they would have turned each $20,000 into $429,000!
