Coastal Dune, North Myrtle Beach: Real Estate Investment Case Study

Coastal Dune is a low-rise oceanfront condominium complex (12 units) in the Ocean Drive section of North Myrtle Beach, SC. Its small scale offers privacy and direct beach access, contrasting the high-rise towers flanking it.

1. Property Overview and Location Benefits

Coastal Dune (also known as “Coastal Dunes”) is an oceanfront condo property located at 941 South Ocean Boulevard in the Ocean Drive Beach neighborhood of North Myrtle Beach. It is a 3-story, low-rise complex with only 12 units, providing an intimate and tranquil atmosphere. Originally built in 1983-84, Coastal Dune became a beloved fixture on Ocean Boulevard, known for its front-yard swimming pool and family-friendly vibe. In May 2021, a fire severely damaged the building, but it was fully rebuilt in 2023 with modern construction and safety codes. The rebuilt units were brand new as of 2023, never occupied prior to sale, making them especially attractive as turn-key vacation properties.

Location is one of Coastal Dune’s greatest assets. Situated in the Ocean Drive section, it is just a few blocks from Main Street, the heart of North Myrtle Beach. This area is famous for its “shag” dance culture and festivals – Main Street hosts annual S.O.S. (Society of Stranders) Spring Safari and Fall Migration events that draw thousands of visitors. During these festivals, vacation rentals near Main Street book fast due to high demand. Even outside of festival season, Ocean Drive offers a charming downtown with local restaurants, beach music clubs, and the historic OD Pavilion amusement park. This proximity makes Coastal Dune appealing to both families and adult vacationers who enjoy the blend of a quiet beach stay with walkable entertainment.

Beyond Main Street, amenities and attractions abound in the vicinity:

• Beach Access: The condo is directly oceanfront, so guests step out to a wide sandy beach protected by healthy dunes. The city has an active beach renourishment and dune restoration program, ensuring the shoreline remains wide and protective. Coastal Dune’s oceanfront setting offers unobstructed Atlantic views and sea breezes from private balconies.

• Golf and Recreation: North Myrtle Beach is surrounded by world-class golf courses. Within a 15-minute drive are notable courses like Barefoot Resort’s four courses, Tidewater, and Surf Golf Club, attracting golf vacationers year-round. The North Myrtle Beach Park & Sports Complex (about 5 miles inland) hosts sports tournaments, festivals, and an adventure park, bringing additional visitors who often seek beachside accommodations.

• Shopping and Entertainment: A 10-minute drive south is Barefoot Landing, a popular shopping, dining, and entertainment complex (in the Windy Hill area). It features attractions like Alabama Theatre, House of Blues, Alligator Adventure, and numerous restaurants on the Intracoastal Waterway. These nearby draws enhance rental appeal for Coastal Dune by offering more activities to guests.

• Family Attractions: Within North Myrtle Beach and the greater Grand Strand, vacationers have easy access to mini-golf courses, outlet shopping, water parks, and Myrtle Beach’s famed boardwalk (about 25 minutes south). Myrtle Beach was ranked a top 4 U.S. destination on TripAdvisor in 2023, underscoring the area’s broad appeal.

In summary, Coastal Dune’s location offers the best of both worlds – a peaceful Ocean Drive beachfront setting with only a dozen units (avoiding crowds and congestion of large resorts), yet immediate access to vibrant Main Street events and a short drive to major attractions. This combination supports both strong rental demand and long-term appreciation potential.

2. Historical and Current Pricing Trends (Coastal Dune)

Coastal Dune provides an interesting case of value appreciation, especially due to the 2021 fire and subsequent reconstruction. Historically, as a mid-1980s built oceanfront condo, units in Coastal Dune traded in line with other older beachfront condos in North Myrtle Beach. In the late 2010s, 3-bedroom units (approximately 1,100 sqft) were selling in the mid-$200,000s. For example, a 3BR unit sold in June 2019 for about $232,000. Even larger 4-bedroom floor plans were relatively affordable by oceanfront standards – a first-floor 4BR unit (A-1) sold for $300,000 in June 2020.

However, after the fire and complete rebuild in 2023, the value of Coastal Dune condos surged. The newly constructed units – effectively brand new 2023 beachfront condos – entered the market at significantly higher prices, reflecting modern finishes and the pandemic-era run-up in coastal real estate values. In mid-2024, the same first-floor 4BR unit (A-1) mentioned above resold for $500,000 (after rebuild). Another rebuilt 4BR (unit D-2) was listed at $525,000 and closed for $490,000 in June 2024. This roughly 60–67% increase in value from 2020 to 2024 (for the 4BR units) illustrates both the value added by new construction and the strong price appreciation in the North Myrtle Beach market over that period.

Current Pricing (2024-2025): As of early 2025, Coastal Dune units are generally valued in the high $400Ks to low $500Ks range for 4-bedroom units, with 3-bedroom units (if any remained unsold post-rebuild) likely in the mid-to-upper $300Ks. These values place Coastal Dune’s condos at or slightly above the median for the Ocean Drive area, which has a median listing price around $400K. It’s worth noting that the Ocean Drive section’s median skews lower partly due to older inventory and smaller condos; Coastal Dune’s brand-new condition commands a premium. For context, Cherry Grove Beach (a neighborhood just north of Ocean Drive) had a higher median listing price of about $489.5K as of 2025, influenced by many single-family homes in that area. Windy Hill Beach, to the south, is similar to Ocean Drive with a median listing around $400K (up ~6.7% year-over-year in March 2025). These comparisons show Coastal Dune’s pricing is in line with or slightly above local condo market medians, justified by its new construction and oceanfront position.

Price Trajectory: We see that Coastal Dune units appreciated not only due to the rebuild but also as part of a broader Grand Strand boom. North Myrtle Beach overall has seen rising prices – the median sold home price in NMB was $398,000 in April 2025, up 3.4% year-over-year. During the height of the market (2020–2022), appreciation was even more robust (double-digit annual gains), before cooling to a sustainable pace. Coastal Dune’s jump from $300K to ~$500K (2020–24) represents an exceptional period; going forward, expectations are for moderate annual appreciation rather than another rapid spike.

Nonetheless, the property’s unique situation (essentially a new building with a nostalgic location) could help it hold value well. Buyers in 2024 effectively got “new construction” on a prime oceanfront lot without the years-long wait or uncertainty of a development – a rare opportunity. The limited supply (only 12 units exist) adds to value stability. Future resale values should benefit from limited competition (no more land to build similar small complexes in that area) and the fact that replacement cost (construction + land) is inherently high for oceanfront property.

Interior of a Coastal Dune condo after the 2023 rebuild. Modern kitchens with granite countertops, new appliances, and luxury vinyl plank flooring were installed, enhancing value and rental appeal.

Overall, pricing trends for Coastal Dune have been upward, with a sharp increase post-2021 due to new construction. At current values, Coastal Dune units represent a mid-tier oceanfront investment – more expensive than older unrenovated condos, but significantly cheaper than luxury high-rise units in the same city (for instance, 4BR condos in the upscale North Beach Towers in Windy Hill run $750K–$1M+). This positions Coastal Dune as an appealing value proposition: offering much of the benefit of oceanfront ownership (new interiors, great location, strong rents) at around half the price of the top luxury resorts.

3. Short-Term Rental Income Potential

One of the key investment draws for Coastal Dune is its strong short-term rental potential. The combination of oceanfront location, 4-bedroom layouts, and proximity to attractions suggests these units can generate substantial vacation rental income via platforms like Airbnb and VRBO. Using data from AirDNA and similar analytics for the North Myrtle Beach market, we can outline the expected performance:

• Occupancy Rate (Annual Average): ~57–58%. In North Myrtle Beach, the median Airbnb occupancy is about 58% (approximately 212 nights booked per year). Coastal Dune’s oceanfront units, if marketed well, can achieve or exceed this average. Peak summer months often see occupancy in the 85–95% range (essentially fully booked aside from changeover gaps), whereas winter months may drop to 20–40% occupancy. An overall ~60% occupancy is a reasonable expectation in this market for a well-managed beachfront condo.

• Average Daily Rate (ADR): around $300–$350 in the peak season, with a market average ADR of ~$341 year-round. According to AirDNA, the average daily rate across all NMB short-term rentals is about $340 (this figure includes high-end houses; the median ADR is ~$190 which accounts for smaller units). For a spacious 4BR oceanfront condo like Coastal Dune, ADRs will skew higher. During summer weeks, nightly rates can easily hit $400+ per night, while in the off-season they may fall to ~$150/night or even lower for monthly snowbird rentals. Overall, an annual blended ADR in the low-to-mid $200s is likely. (For instance, if 212 nights are booked at an average $190, that’s ~$40,000 gross revenue; if a more aggressive strategy yields higher-end bookings, it could be 200 nights at $250 = $50,000).

• Revenue Per Available Rental (RevPAR): approximately $191. RevPAR is a combined measure of rate and occupancy. AirDNA reports an average RevPAR of $191.10 for North Myrtle Beach rentals. This aligns with the occupancy (57%) and ADR ($340) cited. A Coastal Dune unit hitting these metrics would earn roughly $190 * 365 ≈ $69,000 theoretical max, but since many owners don’t rent all 365 days, the typical actual annual revenue is lower (see below).

• Annual Rental Revenue: roughly $35,000–$50,000 per year gross. AirDNA data shows the typical host in NMB earns about $39K/year in rental revenue. This is an average across property sizes. For a larger oceanfront 4BR, we can expect the potential to be on the higher end. With diligent marketing, peak-season weekly rates of ~$3,000 and shoulder-season monthly stays, an annual gross in the $40K+ range is achievable. (For example, one could model 12 peak weeks @ $3,000 = $36K, plus off-season rentals adding another ~$10–$15K, totaling ~$50K. More conservative scenarios or owner use time might bring it closer to ~$35K).

• Seasonal Variance: pronounced seasonal swings are characteristic of this market. Summer (June–August) is the golden quarter – July is typically the top-grossing month. According to AirDNA-derived data, the average monthly revenue in the peak month (July) for NMB rentals is about $5,361, whereas the slowest month (likely January or February) averages only about $1,795. That means peak month revenue can be roughly 3× the off-season month. Coastal Dune owners can capitalize on summer demand (weekly rentals to vacationing families) and then consider strategies for the low season such as monthly “snowbird” rentals at reduced rates or marketing around events (holidays, winter workshops, etc.). The shoulder seasons (spring and fall) are bolstered by events like spring break, sports tournaments, festivals, and fall Harley rallies, which can bump occupancy to 50–70% in those months.

• Comparables: It’s useful to note that North Myrtle Beach’s short-term rental market is healthy and growing. There were ~2,674 active Airbnb listings in NMB as of late 2024, and both occupancy and revenues have been trending upward (+4% occupancy and +3% revenue vs. prior year). The local rental regulations are relatively lenient, and short-term rentals are explicitly allowed in Coastal Dune’s HOA. Many similar oceanfront condos in NMB (especially 3-4 bedroom units in low-rises or mid-rises) report solid summer income. For example, nearby complexes in Cherry Grove or Crescent Beach with 3BR units often gross $30K+ per year, and larger units in high-amenity resorts can gross $50-60K. Coastal Dune, lacking extensive on-site amenities, might have slightly lower ADR than a luxury resort, but its low HOA and prime location can make net returns quite attractive (see ROI discussion in section 7).

In summary, short-term rental prospects for Coastal Dune are strong. An investor can anticipate around 55–65% occupancy on average, with an ADR that peaks in summer (bringing in the bulk of revenue) and a yearly gross income on the order of $40,000 (+/-) under average market conditions. Seasonal management is key: maximizing high-season pricing, and finding creative ways to rent or at least cover costs in winter. The condo’s features (4 bedrooms, sleeps 8-10, oceanfront view, pool access) align well with what vacation renters in NMB seek, supporting the case for robust rental performance.

4. HOA Structure, Fees, and Inclusions

Coastal Dune is governed by a Homeowners Association (HOA) that manages the building and common areas. Understanding the HOA structure and fees is crucial for financial projections, as HOA dues directly impact net income.

• HOA Fees: The monthly HOA fee for Coastal Dune is approximately $1,200 per month (as of 2024). This works out to about $14,400 per year. Notably, this fee roughly doubled after the 2023 rebuild – historical records show the HOA was about $626/month in 2019. The increase is likely due to higher building insurance premiums (after the fire/rebuild) and enhanced amenities or services for the new structure. All 12 unit owners contribute to the HOA; fees may be uniform or based on unit size, but given similar oceanfront footprint per unit, the fees are likely equal across units (meaning even owners of smaller floor plans pay the same, which is worth confirming in HOA bylaws).

• HOA Inclusions: The fee is comprehensive, covering most expenses associated with property upkeep beyond the interior of the unit. According to the property disclosures, HOA dues include:

  • Building Insurance – The master insurance policy for the structure (hazard and flood insurance for the exterior/common areas). This is a significant value, as private wind and flood insurance on the coast is costly. Owners typically still need an HO-6 condo policy for interior contents and liability, but the HOA covers the big master policy.

  • Common Area Maintenance – Upkeep of the exterior and grounds, including landscaping and pool maintenance/service for the oceanfront community pool. The pool is a key amenity for renters, and the HOA taking care of it ensures it remains clean and functional without individual effort.

  • Utilities (Water/Sewer) – Your water and sewer utility bills are paid by the HOA. This is common in condos and helps simplify budgeting.

  • Cable TV and Internet – Bulk cable television and internet/Wi-Fi service for all units. This is a perk for renters, as Wi-Fi and cable are expected in vacation rentals; having it included means one less bill for owners and ensures consistency in service.

  • Trash Pickup – On-site trash service / dumpster and its pickup fees are included.

  • Common Area Electric & Elevator (if any) – Coastal Dune is only 3 stories and may not have an elevator (likely walk-up; from photos it appears to have exterior stairs). If no elevator, then at least exterior lighting and any common electric (e.g., irrigation, stairwell lights) are HOA-covered.

  • Administrative/Management Fees – The HOA fee would also go toward any property management company or HOA reserve funds for future repairs (roof, painting, etc.), as well as legal/accounting costs to run the association.

In essence, the HOA takes care of all exterior maintenance and most fixed utilities, which is typical for a condo. Owners are responsible for their unit’s interior maintenance, contents insurance, property taxes, and any optional expenses (like property management for rentals).

It’s worth comparing Coastal Dune’s HOA fee to those of competing properties. At ~$1,200/month for a 4-bedroom oceanfront, it is moderate. Large full-service resorts often have much higher dues – for example, the luxury North Beach Towers 4BR condos carry HOA fees of $2,000+ per month due to extensive pools, elevators, valet, etc. On the other hand, some older low-rise buildings without pools might have slightly lower fees. Coastal Dune strikes a middle ground: the fee is high in absolute terms, but it includes insurance and amenities that would otherwise be out-of-pocket, and it’s supporting only 12 units (meaning there isn’t a huge base to spread costs, which can drive per-unit fees up). The new construction should also mean fewer special assessments in the near future, as roof, siding, etc. are all new as of 2023.

In summary, investors should budget ~$1,200 monthly for HOA when calculating cash flow. The value received for this fee is substantial, covering insurance (a major expense for any coastal property) and providing hassle-free maintenance of critical services. This predictability in expenses is a positive for a rental investment, essentially outsourcing many operational aspects to the HOA.

5. Competitive Properties in North Myrtle Beach (Windy Hill & Cherry Grove Comparisons)

North Myrtle Beach is comprised of several beachfront neighborhoods, each with its own character and real estate dynamics. Coastal Dune is in the Ocean Drive section, but an investor may compare it to opportunities in Windy Hill Beach (to the southwest) or Cherry Grove Beach (to the northeast), among others. Here’s how Coastal Dune stacks up against these nearby areas and complexes:

• Windy Hill Beach (South NMB): Windy Hill is the southernmost section of North Myrtle Beach, known for a mix of mid-rise condos and luxury resorts. It’s home to attractions like Barefoot Landing and has easy access to Myrtle Beach’s restaurant row. In Windy Hill, condo developments range from small older buildings to the twin North Beach Plantation Towers, which are the most luxurious in NMB. Price Comparison: Windy Hill’s median listing price is around $400K (early 2025), similar to Ocean Drive’s median. However, this average spans a wide range. For example, North Beach Towers units can cost $750K–$1M+ for 4-5 bedrooms, with lavish amenities like multiple pools, spa, and on-site restaurants (and correspondingly high HOA fees ~$2K/month). In contrast, older oceanfront condos in Windy Hill (e.g., Windy Hill Dune, Crescent Sands at Windy Hill) might have 3BR units in the $350K–$500K range. Coastal Dune’s advantage is that, at ~$500K for a 4BR, you’re getting a similar bedroom count at a lower price than the high-end Windy Hill options. The trade-off is amenities: Coastal Dune is a simpler property (just a pool and parking), whereas North Beach offers a water park, gyms, etc. From a rental perspective, Windy Hill’s luxury resorts attract renters willing to pay higher rates, but those come with higher carrying costs. Coastal Dune offers a value play – the rent one can charge is high (because it’s still oceanfront 4BR), but expenses are more modest than a mega-resort. Windy Hill also has many restaurants and shops nearby (Barefoot Landing), but since Coastal Dune is only a 5-10 minute drive from these, it remains competitive in location.

• Cherry Grove Beach (North NMB): Cherry Grove is at the north end of the city, popular for its fishing pier and the salt marsh inlet. It has a more retro, laid-back feel with many low-rise condos and beach cottages. Price Comparison: Cherry Grove’s median listing price (~$489K) is higher than Ocean Drive’s because Cherry Grove includes numerous single-family homes (some on channels). Purely comparing condos: Cherry Grove has older complexes like Sea Cabin (1-2BR units $200K-$300K) up to newer ones like Laguna Keyes or Prince Resort (high-rise 1-3BR units ranging $250K-$500K depending on size). A 3BR oceanfront condo in Cherry Grove might typically list around $350K-$450K (for example, a 3BR/2BA in Sea Pointe was listed at $345K recently). Coastal Dune’s pricing for a 4BR ($500K) is on par with some larger Cherry Grove condos (Cherry Grove has a few 4BR penthouse-style units that also hit ~$500K). Rental Comparison: Cherry Grove is slightly more isolated from central attractions (about 5 miles north of Main Street). However, it’s very popular with families and snowbirds who like a quieter beach. Rentals in Cherry Grove do well in summer (the pier, family-friendly beach, and channel views are selling points) but the area can be sleepier in the off-season. Coastal Dune, being more central, might attract renters who want a mix of quiet and nearby nightlife. Cherry Grove vs Coastal Dune from an investor view: Cherry Grove properties might be a bit less expensive for similar size, but many are older (hence likely needing renovation or having higher maintenance). Coastal Dune offers new construction which is a rarity in Cherry Grove (no recent builds there of similar scale). Also, Coastal Dune’s walking proximity to Main Street events (shag clubs, festivals) is a unique advantage over Cherry Grove properties.

• Ocean Drive vs. Other NMB Sections: Ocean Drive (Coastal Dune’s section) itself is highly desirable because it’s essentially “downtown” North Myrtle Beach. Many vacationers specifically seek lodging near Main Street for convenience and the local atmosphere. Competing complexes in Ocean Drive might include Ocean Bay Club, Pinnacle, Avista Resort, etc., which are larger condo resorts. For instance, Avista (a high-rise a few blocks north) has 3BR units around $400-$450K, with extensive amenities. Those resorts can command good rentals but again come with higher HOAs and more units (competition). Coastal Dune’s niche is that it’s a boutique property – some renters prefer a smaller building where parking is easy and the beach is less crowded out front. Investors can market it as a “private beach escape” in contrast to the bustle of a big hotel-like resort.

In summary, nearby competition in North Myrtle Beach spans a broad spectrum:

• Windy Hill offers upscale resorts (high cost, high rent) and some mid-tier condos; it’s great for access to shopping and south-end attractions.

• Cherry Grove offers quaint beach charm and often slightly lower prices, but older stock; it’s a bit further from the tourist center, appealing to a different demographic.

• Ocean Drive (Coastal Dune’s area) is arguably the best all-around for a mix of entertainment and beach atmosphere, which is reflected in solid property values and rental demand.

Coastal Dune holds its own by being new, oceanfront, and reasonably priced relative to comps. It won’t compete on luxury amenities with the likes of North Beach Plantation, but it also doesn’t have to – its target market is families or groups who want a comfortable, clean oceanfront condo with a pool and a prime location. Those groups might find a perfect fit at Coastal Dune without paying for extras they don’t need. From an investment perspective, Coastal Dune can achieve similar rental rates to some fancier resorts (because renters pay primarily for bedrooms and location) while the owner benefits from a lower cost basis and HOA – a formula for potentially better ROI.

6. Rental Demand Drivers and Local Attractions

Several key factors drive the rental demand for Coastal Dune and similar properties in North Myrtle Beach. Understanding these demand drivers helps an investor gauge occupancy potential and justify rental rate strategies:

• Prime Beachfront and Ocean Views: First and foremost, Coastal Dune is steps from the beach – this is the core of its rental appeal. Tourists flock to North Myrtle Beach for the sun, sand, and ocean. Being oceanfront, the property offers instant beach access (no need to drive or cross busy streets) and amenities like an oceanfront pool. Many renters specifically filter for oceanfront listings and are willing to pay a premium for unobstructed views and the sound of the waves. Coastal Dune delivers on this with private balconies overlooking the Atlantic (as a corner unit description noted: “unobstructed views of the beautiful Atlantic Ocean”). Moreover, North Myrtle Beach’s wide, gently sloping beaches are very family-friendly – no rocks, and generally less crowded than downtown Myrtle Beach. The city of NMB also provides free summer beach concerts and has invested in beach renourishment, which ensures the quality of the beachfront experience remains high.

• Main Street and Shag Culture: As mentioned, Ocean Drive’s Main Street is a hub of entertainment. It’s famously the home of South Carolina’s state dance, the Carolina Shag. Main Street’s clubs (Fat Harold’s, Duck’s, OD Arcade, etc.) and the OD Pavilion draw dance enthusiasts year-round. The SOS Spring Safari and Fall Migration events each last ~10 days and swell the local population with thousands of dancers and beach music fans. During these periods (typically late April and mid-September), demand for accommodations within walking distance of Main Street spikes. Coastal Dune is ideally located just a few blocks south – walking distance – which is a huge selling point for those attending SOS events. (Many will pay a premium not to have to drive/park). In addition, the city holds a big St. Patrick’s Day parade and festival on Main Street each March, another event that fills up local rentals. Simply put, being in Ocean Drive means Coastal Dune benefits from event-driven demand that some farther-flung areas do not.

• Family Vacation Attractions: North Myrtle Beach caters strongly to families in the summer. Barefoot Landing, 4 miles from Coastal Dune, offers attractions like the Alabama Theatre (live shows), House of Blues (concerts), Alligator Adventure (wildlife park), and numerous restaurants and shops. Families often spend evenings there, so staying in NMB (rather than Myrtle Beach proper) is convenient. Also, Cherry Grove Pier (about 3.5 miles north) is a historic fishing pier that draws visitors for fishing and sightseeing; someone staying at Coastal Dune can reach it easily by a short drive or even a beach walk. Within a short radius are mini-golf courses, go-kart tracks, and other kid-friendly fun. Meanwhile, Myrtle Beach’s major attractions (like Broadway at the Beach, SkyWheel, Boardwalk) are about a 25-minute drive – close enough for a day trip. Many vacationers see North Myrtle as quieter “home base” but will venture to Myrtle Beach for a day or two, so they like having both accessible. Coastal Dune’s location allows that bifurcated vacation plan.

• Festivals and Events: Beyond the shag events and bike weeks, the Grand Strand region has a calendar full of events that draw visitors. For example, in fall 2024, local reports highlighted events such as a Fall Harley Bike Rally, a Jeep Jam, and a Shrimp & Jazz Festival, all of which bring niche groups into town. Summer months feature weekly outdoor concerts and fireworks. Sports tourism is also a factor: youth sports tournaments at the North Myrtle Beach Sports Complex or Myrtle Beach’s sports center bring in teams and families, who often prefer renting a condo together over separate hotel rooms. Holiday seasons (Thanksgiving, Christmas) see moderate tourism with many snowbirds and some holiday vacationers – NMB even has holiday light shows and events. Coastal Dune, being a comfortable multi-bedroom condo, could attract families gathering for holidays at the beach.

• Proximity to Amenities: Renters also consider practical amenities: grocery stores, dining, and accessibility. Coastal Dune scores well here. Within a mile or two are multiple grocery options (Publix, Boulineau’s in Cherry Grove, Walmart Neighborhood Market). Dozens of restaurants (from local seafood shacks to fine dining) lie within a 5-10 minute drive. The property is also about 5 minutes from Highway 17, the main north-south artery, making it easy for guests to get in and out or explore neighboring towns (Little River for seafood on the waterfront, or Calabash NC just over the state line). For golfers, as mentioned, it’s near many courses – a significant demand driver in spring and fall especially (golf groups need lodging with enough beds). The world-class golf courses nearby mentioned in the listing make it attractive for golf trip rentals as well.

• Reputation and Returning Guests: North Myrtle Beach has a very high rate of repeat visitation. Many families have vacationed here for generations. A condo like Coastal Dune, once it establishes a presence in the rental market, could benefit from repeat renters who make it their annual beach trip spot. The Ocean Drive area’s nostalgic appeal (shag dancing, vintage beach town feel) fosters loyalty. If an investor provides a good guest experience at Coastal Dune, they might secure those guests’ future bookings (reducing marketing costs over time).

To illustrate the importance of some demand drivers: Myrtle Beach was one of the top trending destinations in 2023, and even in 2024 when overall occupancy saw a slight dip in late summer, fall bookings outpaced the prior year as visitors took advantage of off-season events and rates. Also, RevPAR for mid-range and upscale properties increased in 2024, showing sustained demand in higher tiers. Coastal Dune, being an upscale new condo (if not in a “resort” category), aligns with that trend of solid performance in quality properties.

In summary, rental demand for Coastal Dune is driven by:

• The fundamental allure of a beachfront vacation,

• Unique local culture/events (shag dancing festivals, etc.),

• Family-friendly entertainment and amenities nearby,

• Year-round events and mild winter climate attracting off-season visitors (snowbirds, golfers, festival-goers).

These factors contribute to making Coastal Dune a potentially high-occupancy, high-demand rental, especially from late spring through early fall. Investors can leverage these drivers in marketing – for instance, advertising the condo as “Walk to Main Street festivals!” or “5 mins to Barefoot Landing” in listings to capture those looking for the described experiences.

7. Investment Outlook 2025–2027 (Appreciation and ROI Projections)

Looking ahead to the next few years, the investment outlook for Coastal Dune appears positive, albeit within the broader context of a normalizing real estate market. Below we consider expected property appreciation, as well as return on investment (ROI) from rental operations.

• Property Value Appreciation: After the frenzied growth of 2020-2022, the Grand Strand real estate market has been stabilizing. Even so, North Myrtle Beach continues to see year-over-year price increases. As of spring 2025, NMB’s median listing price was up about 12.5% year-over-year, and median sold price up ~3–4%. Local experts are upbeat about 2025: “the coastal Carolina and Myrtle Beach real estate market is off to an energetic start in 2025”, suggesting momentum is still strong. Inventory remains relatively tight for desirable oceanfront property – no new oceanfront condos are being built in NMB apart from a few luxury towers, so Coastal Dune’s segment (small-scale oceanfront condo) has virtually no new competition coming. Forecast: It’s reasonable to project conservative appreciation of 3–5% annually for Coastal Dune units over 2025–2027. This would mean a $500K condo could be worth perhaps ~$545K–$580K by 2027 if trends hold. There is upside potential if the market accelerates (for instance, if interest rates fall and second-home buyer activity surges, coastal markets could see stronger gains). Additionally, the newness of Coastal Dune will still be an advantage in a few years – in 2027 it will be a “~4-year-old” building versus others that are decades old, which should preserve a value premium and reduce value-eroding factors like deferred maintenance. Coastal properties also tend to appreciate in line with both local economic growth and the national second-home market trend. Barring any major hurricanes or economic downturns, demand for oceanfront real estate is expected to remain high as baby boomers retire (many seeking beachfront homes) and investors chase the proven vacation rental market.

• Rental Income Growth: On the income side, we anticipate continued strong tourism. Myrtle Beach’s visitor numbers have been rebounding to record levels post-pandemic. AirDNA’s data showed +3% revenue growth and +4% occupancy growth year-over-year into late 2024, indicating a healthy upward trajectory in rental performance. If tourism grows even 2-3% per year, rental rates can be inched up accordingly. Additionally, as Coastal Dune establishes itself in the rental market (if 2024 was effectively its first rental season as a new building, by 2025-2026 it could build a base of repeat guests and reviews), it may achieve higher occupancy or justify higher rates. AirDNA’s Market Score for NMB was 62/100 (rated “Good”) with a high Rental Demand index (90/100), which bodes well for owners maximizing their returns. We might expect ADRs to rise modestly (keeping pace with inflation or about 2-3% per year) and occupancy to remain stable or improve slightly if marketing is effective. Thus, a unit grossing $40K in 2024 could be grossing ~$45K by 2027 with rate adjustments and solid management.

• ROI and Cash Flow: For a financial case study, we combine the above elements to gauge ROI. Assume an investor purchased a Coastal Dune 4BR for ~$500,000 in 2024. If they financed 75% (putting 25% down = $125,000) at current interest rates (say ~7% on investment mortgages), their annual debt service might be around $32K. Annual HOA is ~$14.4K, property tax roughly ~$5K (estimated on a $500K condo), insurance and utilities for the unit maybe $2K. So annual carrying costs (excluding financing) ~$21.4K. If gross rental is $40K, and they use a rental manager (typical 20% fee ~$8K), net rental income would be ~$32K before owner expenses, which about covers the mortgage interest+principal in this scenario. This simplified math suggests a break-even or slight positive cash flow position with 25% down – quite good for a beachfront investment (many require more cash down to break even). If the owner self-manages via Airbnb, they could save management fees and realize perhaps $10K+ net cash income after all expenses and mortgage. If they paid cash $500K, their net income after HOA, taxes, etc. might be on the order of $15K-$20K, which is a ~3-4% annual yield (cap rate). While 3-4% cap rate is modest, remember there is also appreciation and personal use value. With 3-5% appreciation per year, that’s an additional ~$15K-$25K per year in equity gains on a $500K asset. Thus total return (net income + appreciation) could be on the order of 8%+ annually. Leveraged ROI on the cash invested would be higher – for instance, a $125K down payment could yield $15K net income + $20K equity gain = $35K return, which is a ~28% return on cash in that year (noting that part of that is unrealized until sale). Of course, these are projections and actual results will vary with interest rates, rental success, and market conditions.

• Resale Considerations 2025-2027: We expect Coastal Dune will be an attractive resale candidate in the coming years. Being a newer construction, if an owner decides to exit in, say, 2027, they would be selling a ~4-year-old oceanfront condo with a proven rental history. That profile will appeal to both lifestyle buyers (someone who wants a vacation home with minimal renovation needs) and investors (who will like seeing documented rental income trends). Additionally, the Grand Strand is seeing continued population growth and investment (the expansion of Hwy 31, new businesses, etc.), which generally supports property values. One factor to watch is insurance costs and HOA changes – if insurance rates spike (common on the coast), HOA dues might rise and could affect values slightly. But Coastal Dune’s HOA appears to have priced that in after the rebuild. Another factor is interest rates: currently somewhat high, they suppress second-home purchases a bit. If by 2025-2026 rates ease, we could see another surge of buyers entering the market, which would boost property values further.

Bottom Line: The investment outlook for Coastal Dune over the next few years is favorable. Investors can reasonably expect:

• Steady rental income with slight growth year to year (occupancy demand is strong, and NMB continues to be a top beach destination).

• Modest property appreciation in the mid single-digits annually, barring unforeseen market shifts.

• The ability to enjoy some personal use of the property (if desired) while still covering costs, given the solid rental potential.

• A comparatively lower risk profile thanks to the new construction (minimized surprise repair costs) and inclusive HOA (predictable expenses). Also, North Myrtle’s lenient stance on short-term rentals reduces regulatory risk, an important consideration in some markets.

In a ROI table format, by 2027 one might project:

• Property value: ~$575K (assuming ~5%/yr appreciation from $500K).

• Cumulative rental income (2025-27): ~$120K gross (maybe ~$90K net after expenses over 3 years).

• Mortgage principal paid down (if financed): a few percent of loan (~$15K).

• So equity could grow from $125K initial to maybe ~$200K+ (through appreciation and pay-down), alongside whatever net cash flow was taken each year. This illustrates how a combination of rental yield and appreciation makes the investment compelling.

Of course, these figures are projections. Market fluctuations, economic cycles, or hurricane impacts could alter the trajectory. But as of now, North Myrtle Beach’s fundamentals are strong – it’s a mature but growing resort market with enduring appeal. As long as tourism remains robust (and trends show millions of visitors each year, with Myrtle Beach airport expanding international flights, etc.), properties like Coastal Dune should continue to perform well both in value and income.

Sources:

1. North Myrtle Beach MLS – Coastal Dune Unit Sales (2020–2024)

2. Traci Miles, REALTOR® – Coastal Dune A3 Listing (2018/2019 sale info)

3. WMBF News – Fire at Coastal Dunes in May 2021

4. AirDNA Market Data – North Myrtle Beach STR Performance

5. Airbtics Rental Analytics – NMB Airbnb Annual Averages (2023/24)

6. myBeach Rentals Market Update (Oct 2024) – Tourism Trends

7. Realtor.com – North Myrtle Beach Neighborhood Price Stats (2025)

8. North Myrtle Beach Vacations – SOS Festivals info

9. MLS via C21 Barefoot – North Beach Plantation condo fees and prices

10. ExploreNMB.com / TripAdvisor – Area description (Ocean Drive attractions, etc.)

Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.