Beach Re-nourishment and Property Value Growth: The Case of Folly Beach, South Carolina

Numerous studies using a variety of methods suggest that beach re-nourishment generates benefits to both recreational users and property owners. However, the only study to use a repeat sales index (Cordes, Gatlaff and Yezer, 2001) found no effect of re-nourishment on property values. We use a repeat sales index to investigate the effects of the Army Corps of Engineers' re-nourishment of Folly Beach, South Carolina. We find that this re-nourishment has maintained property values' rates of appreciation when compared with real estate values in a similar real estate market, the Isle of Palms, South Carolina.