Population Down 28%, Home Prices Up 100%: How Remote Work Has Redefined Coastal Real Estate Markets

Written by:

Rudi Davis

Date:

24 Jan 2026

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Coastal real estate markets are experiencing a trend that defies traditional analysis: significant population decline alongside sharp increases in property values. In Ventnor City, New Jersey, the population has dropped about 28% since 2000, yet median home prices now exceed $800,000—more than double the national average. This apparent contradiction reveals a new reality for coastal communities and the people who now live in them.

Tim Kriebel, Mayor and Commissioner of Public Safety for Ventnor City, New Jersey, says a shift that standard demographic statistics miss holds the answer. “We went from a community of ten thousand full-time residents to thirty thousand full-time residents in the summer,” Kriebel explains. According to him, about 20,000 people who previously owned seasonal homes in Ventnor decided during the pandemic to live near the beach full-time.

Kriebel says the pandemic made remote work a permanent option for many professionals, allowing seasonal homeowners to make the shore their primary residence. “A lot of those folks decided to renovate their house or sell their other full-time house and live in their shore house,” he says. This sudden influx of full-time residents with higher incomes and new needs triggered lasting changes in the local real estate market.

The Cascade Effect on Construction and Property Values

The impact was immediate. Kriebel recalls that after the pandemic began, the city experienced a surge in renovations and new home construction. “On the backside of COVID, we saw a huge uptick in renovations and new construction, and that started the fear-of-missing-out kind of effect once that ball started rolling,” he says.

Builder activity changed dramatically. For years, Kriebel struggled to convince builders to take on projects in Ventnor due to a lack of demand for new homes. Now, he says, the situation has reversed. Builders who once ignored Ventnor are now competing for available lots.

This new demand has also changed what gets built. Older homes that are not flood-compliant or lack features essential to remote workers—such as large rooms, modern kitchens, and ample parking—are being torn down and replaced with new construction. “The inventory is not flood compliant, or it’s just outdated for the use that people have today,” Kriebel says. Buyers now expect features that support longer stays and full-time living, not just vacation use.

One recent project illustrates this shift: developers converted a former bank and its parking lot into four-bedroom homes with parking underneath, pricing each between $1.5 and $2 million. Kriebel notes that this kind of redevelopment is becoming common as older properties make way for housing that fits the needs of a more affluent, year-round population.

Why Demographic Data Misses the Full Story

The Ventnor case highlights a significant flaw in relying solely on population data to judge real estate markets. Typically, population decline signals weakening demand and falling prices. But Kriebel points out that when the type of resident changes, so does the market dynamic.

“The full-time population may be smaller, but it is wealthier and more likely to invest in property improvements,” he says. Seasonal residents are also wealthier and more numerous than in previous decades. As a result, the city’s tax base has grown even as the year-round population has shrunk.

However, this shift also brings new challenges. Schools may have fewer students, but infrastructure costs remain the same. Police, fire, and city services must still accommodate a population that swells dramatically in summer. Water and sewer systems must handle peak loads for only part of the year. Kriebel notes that the per-capita cost of municipal services often rises even as the full-time population falls, creating budget pressures that demographic data alone cannot predict.

Strategic Investments to Attract New Residents

To adapt, Ventnor has invested in amenities that appeal to seasonal and remote-work residents. Kriebel says the city has become more attractive by revitalizing downtown, funding free public concerts and festivals, and building a new stage for them. The weekly farmers market, which draws thousands downtown, is another key part of this strategy.

“I think that’s created a bit of a buzz in our town,” Kriebel says. Today, properties near the beach or close to downtown command premium prices. Real estate listings now highlight amenities like the restored 1920s theater and the farmers’ market as major selling points.

Broader Implications for Coastal Markets

Kriebel’s experience suggests that coastal real estate markets are undergoing a lasting change, accelerated but not solely caused by the pandemic. As remote work remains widespread and coastal living becomes more desirable, these markets are diverging from both inland trends and their own past patterns.

For investors and developers, this means population numbers alone no longer tell the whole story. “The composition of the population matters more than the total number,” Kriebel says. A community that loses some full-time residents but gains remote workers and seasonal investors can still see rising property values and investment potential.

For local governments, the challenge is to manage this transition deliberately. Cities that invest in downtown improvements, public events, and infrastructure for both seasonal and year-round residents are attracting more investment and seeing higher property values than those that do not, according to Kriebel.

Short-term rentals have also increased sharply. Ventnor now has around 250 short-term rentals, which Kriebel says helps support local restaurants and retail by bringing more visitors downtown. The city has introduced rules requiring a minimum stay of 7 nights for larger homes and 2 nights for smaller units to limit neighborhood disruption.

Looking Ahead

Whether other coastal communities will follow a similar path remains uncertain, but Kriebel’s decade of observation suggests that the changes in Ventnor will endure. The real estate market is responding to lasting lifestyle preferences and work habits, not just temporary trends. For buyers, investors, and city leaders, the lesson is clear: understanding who lives in a community—and how they use their homes—matters more than headline population figures when predicting the future of coastal real estate.