A 10-Year Look at How Westerly’s Neighborhoods Have Performed - and Why Location Still Reigns Supreme
If there’s one thing I’ve learned in all my years working in the Westerly market, it’s that location never goes out of style. Whether you’re drawn to the charm of Watch Hill village, the surf of Misquamicut, or the calm coves of Shelter Harbor, every buyer instinctively understands that certain pockets of our coastline carry something special - a blend of beauty, community, and history that simply can’t be replicated.
But while “location, location, location” is one of real estate’s oldest sayings, it’s also one of the most misunderstood. We often feel that some areas appreciate faster than others, but it’s not often we get to prove it with data. So, I recently dug into every single-family sale in Westerly (02891) from 2015 through 2025 - more than a decade’s worth of closed transactions - to see exactly how each neighborhood has performed.
The results not only confirm what many locals already suspect but also shed light on a few surprising patterns that could help both buyers and sellers make more informed decisions.
The Five-Neighborhood Snapshot (2015–2025)
To make the data meaningful, I divided Westerly into five distinct market zones:
- Watch Hill
- Weekapaug
- Misquamicut
- Shelter Harbor
- Westerly / Other – everything else
Across the ten-year period, the differences are striking. Median sale prices more than doubled for Westerly as a whole, rising from roughly $301,000 in 2014 to $625,000 in 2025, representing an annualized growth rate (CAGR) of 6.8%. But within that overall surge, individual neighborhoods tell very different stories.
As shown in the comparative 10-year median sale price chart, Watch Hill and Weekapaug sit unmistakably at the top of the curve, consistently outperforming all others. Both markets reflect not just luxury demand but also a level of scarcity that drives steady appreciation - there are simply very few opportunities to buy, and even fewer reasons for owners to sell.
Just below them, Shelter Harbor and Misquamicut show strong but more moderate appreciation. Shelter Harbor benefits from its private setting and access to Quonochontaug Pond, while Misquamicut offers high rental demand and a classic beach-community atmosphere. Finally, Westerly / Other serves as the broader residential base of the market, offering more affordability and higher transaction volume.
In short: every part of Westerly has done well, but the closer you are to the water - and the rarer the inventory - the stronger the appreciation curve.
What the Data Tells Us
Numbers are helpful, but it’s the trends behind them that really matter. Here are the biggest takeaways from ten years of Westerly sales data:
1. Watch Hill and Weekapaug Have Historically Outperformed
If you’re focused on investment performance, these two neighborhoods stand out as the long-term winners.
- Over the last decade, both posted the highest median sale prices and the strongest appreciation trajectories.
- Even accounting for market fluctuations - including the 2020–2022 pandemic surge and subsequent cooling - their 10-year growth rates outpaced every other neighborhood.
- The combination of architectural character, ocean proximity, and limited inventory creates the perfect formula for sustained demand.
For those thinking like investors, Watch Hill and Weekapaug aren’t just beautiful places to live - they’ve been reliable assets for wealth preservation and appreciation. Owners here are rarely forced sellers, and new buyers are often willing to wait years for the right opportunity.
2. Strategic Value Lies Just Outside the Core Coastal Enclaves
Not every buyer needs direct beach access to enjoy the Westerly lifestyle. If you already have beach privileges through a club membership - such as the Misquamicut Club, Weekapaug Inn, or the Ocean House Club - or simply value proximity over the beachfront, there are smart alternatives.
Properties just beyond the boundaries of Watch Hill and Weekapaug often trade at 30–40% lower price points while still offering easy access to the same coastline, marinas, and social circles. These homes tend to have larger lots, newer construction, and far less competition at the offer stage.
For buyers with connections or memberships that already include beach access, buying just outside the marquee neighborhoods can be a savvy financial move - one that keeps you close to the action but with a lighter carrying cost and stronger rental potential.
3. For Aspirational Buyers, Think Long-Term Value - Not Sticker Shock
It’s easy to look at Watch Hill or Weekapaug prices and feel they’re “too high,” but the data tells a different story. Over the past decade, values in these neighborhoods have shown consistent upward momentum, even through the market’s ebbs and flows.
If you have the means to buy in these areas, think of it as “parking your money” in a tangible, high-end asset that not only provides irreplaceable family memories but also a historically resilient return on investment.
Real estate, unlike equities, delivers something else along the way: use, joy, and legacy. A home in Watch Hill isn’t just an investment on paper - it’s a lifestyle dividend that pays out every summer in sunsets, gatherings, and the sound of waves crashing on the shore.
And as history has shown, waterfront property tends to be the last to fall and the first to recover when cycles shift.
Market Trend Summary
Looking at the decade as a whole, a few broader themes emerge:
- Overall strength: Westerly’s single-family median price has climbed 107% in ten years.
- Luxury leadership: Watch Hill and Weekapaug remain the benchmarks, each showing long-term appreciation near or above 7% annually.
- Shelter Harbor’s rise: Once a quieter community, Shelter Harbor has seen renewed interest as buyers seek privacy and water access without the higher entry cost of Watch Hill.
- Misquamicut’s consistency: Strong short-term rental demand and ongoing redevelopment have steadily pushed prices higher.
- Westerly’s foundation: The town’s inland neighborhoods continue to provide both the housing base and the liquidity that sustain the overall market.
In many ways, Westerly behaves like a miniature version of the broader coastal New England market - with high-end enclaves setting the tone and the inland neighborhoods providing stability.
Beyond the Numbers - What My Experience Tells Me
While I love data, numbers can’t tell the whole story. Having lived and worked here for decades, I can say with confidence that market sentiment and lifestyle appeal often lead the numbers by six to twelve months.
When I sense an uptick in buyer inquiries for Watch Hill and Weekapaug - typically from families in New York, Connecticut, and Boston - it’s usually followed by a tangible price rise within the next season. These are informed buyers, and they know that if they miss a season, they might be waiting years for the next opportunity.
I’ve also watched how the pandemic reshaped our market. Many families who once treated Westerly as a summer address began using their homes year-round, reinforcing the town’s value as a full-time coastal community. This behavioral shift has kept inventory tight and prices steady, even as interest rates fluctuated.
On the sell-side, I’ve noticed that renovated, move-in-ready properties continue to command outsized premiums. Buyers today are willing to pay for turnkey quality, especially when it comes with strong rental potential or proven seasonal appeal.
The lesson? Whether you’re buying or selling, success in Westerly still comes down to location, presentation, and timing - and knowing which combination of those three factors matters most for your specific property.
Why a Ten-Year View Matters
One of the challenges in real estate analysis is perspective. A single year’s data can look volatile; a five-year view can still be distorted by short-term booms or pauses. But a ten-year window captures the entire market cycle - from the pre-pandemic years through the surge of 2020–2022 and into today’s more balanced environment.
The fact that median prices nearly doubled during that span isn’t just the story of one hot market - it’s evidence of long-term resilience.
Moreover, this decade included major shifts in lifestyle, technology, and remote work that permanently changed how people use their coastal homes. Westerly’s proximity to major metro areas (roughly two hours from Boston or New York City) and its combination of small-town charm and five-star amenities (Ocean House, the Weekapaug Inn, The Misquamicut Club, and the Shelter Harbor Golf Club) give it a unique, durable appeal.
In short: even if you removed the pandemic bump, Westerly’s trajectory would still point upward. That’s the power of location - it holds value through every kind of market.
Looking Ahead
As we move into the next few years, I expect continued strength across Westerly’s five neighborhoods, though at a more measured pace. Interest rates, supply shortages, and changing tax policies may influence short-term behavior, but the fundamentals remain solid:
- Demand continues to outpace supply in nearly all coastal enclaves.
- Generational turnover will likely bring a few exceptional properties to market in the coming years.
- Investment interest remains strong among buyers seeking lifestyle assets that also perform financially.
If you’ve been considering purchasing in the area, my best advice is to focus on quality and longevity. A well-located property in a desirable neighborhood rarely goes down in value - it just waits for the right buyer.
And if you already own in Westerly, take pride in knowing you’re part of a market that has consistently outperformed much of coastal New England for an entire decade.
In Closing
The phrase “location, location, location” isn’t just a cliché here - it’s a proven investment principle.
My 10-year data confirms what generations of residents have known intuitively: that Westerly’s coastline — from Watch Hill to Weekapaug and beyond — holds its value not only in dollars but in the memories and experiences it provides.
Whether you’re thinking about buying, selling, or simply curious about your home’s current market value, I’d be happy to share specific insights for your street or neighborhood.
Feel free to reach out - I’m always glad to discuss the numbers, the nuances, and, yes, a little bit of the gut instinct that only comes from years of watching these tides.
Warm regards,
Geb Masterson
Broker Associate, Licensed in RI & CT, William Pitt Sotheby's International Realty
Cell/Text: 714.473.8530 || Email: [email protected]
