Live Your Lake House Dreams at These Affordable Locations

Been dreaming about a waterfront property nestled beside a shimmering body of water, perhaps one with a private beach? Is your idea of heaven watching the waves or nearby wildlife from the comforts of your back porch? Purchasing a home near the shoreline certainly has its perks, but this transaction can also be extra pricey.

Fortunately, there are pockets of the country where buying a lakeside home is surprisingly more affordable than you’d think.

What the research found

Realtor.com recently investigated several top destinations for buying a lakefront home in the U.S. this year. The top lake house locations that offer the best value for the money and cost less than $500,000 are:

1. Saranac Lake, New York: Nestled in the Adirondacks, this peaceful upstate community is perfect for outdoor enthusiasts seeking an affordable waterfront escape. Median list price: $223,000 in Franklin County; $379,000 in Essex County
2. The Finger Lakes, New York: Known for its wineries, water recreation, and charming small towns, this region still offers affordable lakeside properties. Median list price: $251,950 in Seneca County; $429,000 in Yates County
3. Southwest Lake Erie Region, Michigan and Ohio: A budget-friendly stretch of Great Lakes shoreline, this area offers charming towns, fishing, and easy access to attractions like Cedar Point. Median list price: $320,000 in Monroe County, Michigan; $335,000 in Erie County, Ohio
4. Lake of the Ozarks, Missouri: This popular Midwestern lake destination offers year-round recreation and remains one of the region’s most affordable waterfront markets. Median list price: $331,950 in Camden County; $399,900 in Miller County
5. Lake Havasu, Arizona: A desert oasis known for boating, sunshine, and its famous London Bridge, Lake Havasu offers accessible lakefront living year-round. Median list price: $420,000 in Mohave County
6. Lake Norman, North Carolina: North Carolina’s largest lake combines scenic, four-season waterfront living with proximity to Charlotte’s city amenities. Median list price: $370,000 in Catawba County; $475,000 in Iredell County; $485,000 in Mecklenburg County
7. Winter Park, Florida: Offering a chain of connected lakes in a charming, historic town, Winter Park provides a quieter alternative to Florida’s coastal cities. Median list price: $444,850 in Orange County
8. Lake Geneva, Wisconsin: A favorite Chicago-area getaway, Lake Geneva delivers beaches, spas, and strong rental potential during the warmer months. Median list price: $495,000 in Walworth County

What the experts say about buying a lakefront property

Industry pros agree with the rankings of many of these locations, which reflect a wide variety of lakefront property experiences.

“The Southwest Lake Erie region stands out to me,” says Andrew Lokenauth, a personal finance expert. “I helped clients purchase there last summer, and they are seeing strong appreciation already. The median price of $320,000 in Monroe County is a steal for waterfront property.”

Martin Orefice, CEO of Rent To Buy Labs, is also a fan of Southwest Lake Erie, a location he says deserves more attention.

“Property is especially affordable in that area and throughout the old Rust Belt, meaning you can get a lot more lake house for your money in those areas,” says Orefice.

City University of New York economics and finance professor Dennis Shirshikov believes the inclusion of Winter Park and Lake Havasu speaks to the increasing allure of warm-climate lake living.

“I’m also not surprised that Lake Geneva or Finger Lakes are on this list, but I was surprised to see Saranac Lake make the cut. Perhaps its remoteness tends to keep prices modest,” he adds.

Ask Steven Glick, director of mortgage sales for HomeAbroad, and he’ll tell you that Lake of the Ozarks represents a particularly good deal.

“It’s a standout because of its affordability, with median home prices hovering around $345,000, and it’s got a vibrant summer scene with boating and golf, plus decent rental income potential,” Glick notes. “It’s a great spot for families or investors looking for a budget-friendly lake house with year-round appeal.”

It makes sense to Mark Sanchez, senior real estate manager at Gator Rated, that Winter Park is listworthy here.

“Florida buyers, especially those coming from out of state, are increasingly looking for areas that offer waterfront living with strong long-term value and year-round recreation,” continues Sanchez. “Winter Park delivers that with its chain of lakes, walkable charm, and strong school zones – yet still gives access to central Florida’s growing economic corridor.”

Pros and cons of lakeside homes

Lakefront properties allow you to spend more time on or near the water, a universally appealing advantage. Plus, they tend to appreciate more quickly than non-lakefront homes because of their scarcity and desirability.

“There’s only so much waterfront to go around. For example, Lake Tahoe’s California side has seen average home prices hit $835,000, with steady growth due to demand for vacation and year-round living. Popular spots like Lake Winnipesaukee or the Finger Lakes can also yield strong returns, especially as rental properties,” Glick says.

The downsides? “You’ll pay a premium for the privilege, you may have to deal with a lot of tourists during the summer, and there’s an increased risk of flooding and water damage as well as possible shoreline erosion concerns,” says Orefice.

Peaceful mornings on the water, R&R time spent with friends and family, and a lifestyle that’s hard to replicate anywhere else are among the major draws of purchasing and living in a lakeside residence, per Casey Gaddy, a Realtor with Keller Williams Empower.

“Just remember that most of these areas listed are Great Lakes, but the biggest and most popular lakes don’t necessarily mean it’s the best investment or lifestyle fit for everyone,” cautions Gaddy.

If you won’t be using the home as your primary residence, you can opt to rent it out and likely earn significant revenue.

“Consistent rental income is often $25,000 to $35,000 annually in good locations. Plus, you can probably count on strong appreciation, which is typically 7% to 9% yearly in many markets,” Lokenauth points out. “On the downside, your homeowners insurance costs will be high, often $3,000 to $5,000 per year, and if you have a boat dock, you may have to pay for maintenance, which can equate to over $2,000 annually. One of my lakefront properties needed $7,000 in dock repairs after a harsh winter.”

Good candidates for lakefront living

“Anyone who truly values the lake lifestyle is a worthy prospect. It’s about the community and what being there will add to your life,” Gaddy says. “Whether you are looking for a second home, an investment property, or a retreat for weekends and holidays, it works best for those who will actually use it or who have a solid plan to manage it if they won’t be there full time.”

Prospective buyers include those who have flexible cash flow, including high-earning professionals who can cover carrying costs off-season, as well as families seeking multi-generational gathering places.

“If you’re someone who loves fishing or owns a boat, a lakefront property is probably a good investment,” Orefice adds.

The three buyer types who most succeed with lakeside homes, according to Lokenauth, include remote workers with flexible schedules; empty-nesters with disposable income; and investors seeking short-term rentals.

“Location matters here. My clients who live within three hours of their lake house use it three times more often than those further away,” Lokenauth says.

Best buying and owning strategies for lakeside homes

If you don’t plan to make it your primary residence, it’s best to treat a lake house as a business.

“I would consider renting it out when you are not there to offset costs. Platforms like Airbnb can certainly help, but check local regulations, as some areas require permits,” suggests Glick. “Hire a property manager if you are not local who can handle bookings and maintenance, as docks and exteriors need regular attention.”

Gaddy agrees that finding someone local and trustworthy who can check in on your property regularly is a smart idea.

“Also, install security cameras, smart locks, and remote-access systems to keep tabs on the property while you are away,” he recommends.

Additionally, budget for higher insurance, especially flood coverage, and factor in seasonal costs like winterizing pipes if you are in a colder area.

Glick also advises purchasing in the off-season, such as October through December, when sellers tend to be more negotiable.

“Purchasing and owning a lakefront property with friends or relatives in on the deal can be a good way to split the costs and share the space without getting sucked into a timeshare,” adds Orefice.

How to find your dream lake house

To locate the ideal property, start by defining your goals.

“Ask yourself: Will this be a personal retreat, a rental investment, or both? Then, you can narrow down locations based on proximity,” says Glick. “Work with a Realtor who specializes in lakefront parties. They will know the ins and outs of local regulations, like HOA rules or Corps of Engineers restrictions, which could mean annual fees.”

Additionally, get preapproved for a mortgage early in the process so you can better determine your budget; vacation and second homes often require at least 10% to 20% down and a stronger credit profile.

Tour properties for sale in person, preferably in the off-season, to gauge the lake’s condition and test the overall vibe.

“Try to book a week-long stay to assess community character, areas where service gaps exist, and upkeep realities. Also, check public records regarding shoreline easements and flood maps so that there are no surprises,” says Shirshikov.

Be prepared to look hard and act quickly, too.

“Inventory is tight. Many great deals and opportunities never hit the multiple listing service, so you’ve got to get familiar with the people in the area as much as the properties,” advises Gaddy. “Talk to neighbors, knock on doors, and connect with a local agent who is plugged into the area. The best homes are often sold through word-of-mouth or pre-market.”

What to consider carefully before buying a lakeside home

Due diligence is crucial when it comes to a lake house purchase.

“Steer clear of properties requiring seawall repairs, homes with septic systems too close to the water, and anything with unclear water rights. One of my clients almost bought a lakefront home where the land between the house and the water was actually public property,” says Lokenauth.

Be careful not to fall too far in love with the view. Carefully understand the local zoning and HOA rules, insurance expenses, dock regulations, flood zones, and seasonal access issues.

“You want to buy into a lake that’s well-managed and not just pretty on a postcard,” suggests Gaddy.

Pay for a water quality test to make sure the lake is safe for swimming, and avoid any homes where the shoreline is washing away.

“Lastly, consider privacy: If the lake is public, expect boaters close to your property,” Glick notes.