Vidya Krishnakumar SVP of Data Science, Analytics and Experimentation | realtors.com
Nantucket's real estate market, known for its high-value properties, faces significant challenges on Sheep Pond Road due to coastal erosion. In 2024, the island saw $1.3 billion in real estate transactions with a median sales price of $3.3 million. However, homes on this particular road are losing value as the coastline erodes.
Local real estate agent Shelly Lockwood of Advisors Living highlighted the situation by stating, “Sheep Pond is going in the drink.” This street has experienced severe erosion, with some properties at risk of falling into the ocean. One such property was condemned recently due to erosion issues.
A notable transaction occurred in April 2022 when investor Brett Fodiman purchased two properties at 14 and 16 Sheep Pond Road for $3.9 million. These properties were rented out during peak summer for $16,000 a week. However, recent developments have left these investments precarious. The town declared one property uninhabitable and plans an auction on March 4 through Paul E. Saperstein Co., representing lender Clinton Savings Bank.
The area's erosion problem is not new to locals or officials like Rob Ranney, Nantucket's assessor, who told the Boston Globe about consistent annual erosion rates of 10 to 15 feet over many years.
Despite the risks and financial losses—such as a home at 6 Sheep Pond Road selling for $600,000 after being listed for nearly $2.3 million—the allure of waterfront views still attracts buyers. Currently, three properties remain listed for sale on Sheep Pond Road despite ongoing erosion concerns.
Lockwood noted that while buyer’s agents inform potential buyers about these risks candidly, some investors prioritize short-term enjoyment over long-term viability: “There’s people who can afford to lose that amount of money... To them, that is worth it.”
The future remains uncertain for Sheep Pond Road as legal and environmental factors continue to play a role in determining outcomes for current owners and potential buyers alike.
Alerts Sign-up