Walking the Line to Profit: How Infrastructure Upgrades in Coastal Resorts Signal Smart Real Estate Investments

The sun-drenched beaches of Isle of Palms, South Carolina, are more than just a vacation destination—they're a microcosm of how strategic infrastructure investments can transform real estate markets. Recent upgrades to sidewalks, boardwalks, and drainage systems, alongside soaring tourism metrics, reveal a pattern of revitalization that savvy investors should not overlook. Here's why coastal communities like Isle of Palms are prime targets for undervalued opportunities—and how to capitalize before others catch on.

The Infrastructure Play: Sidewalks as a Catalyst for Growth

Sidewalk upgrades are often the unsung heroes of urban revitalization. In Isle of Palms, the 21st Avenue Sidewalk Repair & Extension Project, funded by a $260,000 allocation from Charleston County, exemplifies how even small-scale infrastructure improvements can signal broader municipal commitment to growth. The project, now nearing completion after delays, connects residential areas to key tourist hubs, enhancing walkability and accessibility. Such upgrades reduce friction for both residents and visitors, boosting property values by improving livability.

But sidewalks are just the start. The city's Palm Boulevard Bike/Pedestrian Enhancements and Waterway Boulevard Multi-Use Path Elevation Project further underscore a deliberate push to modernize infrastructure. These projects align with a $30.1 million municipal budget for FY2025-26, prioritizing drainage improvements, beach maintenance, and public spaces. The takeaway? Infrastructure spending is a leading indicator of where growth is intentional—and inevitable.

Tourism Trends: Demand Outpacing Supply

Isle of Palms' tourism metrics are staggering. In 2025, peak-season Airbnb listings commanded $894 average daily rates (ADR) and 56.9% occupancy, while low-season ADR dipped to $558. The island's 20,000 daily summer visitors—four times its permanent population—highlight a market straining under demand. Yet, median home prices fell slightly in June 2025 to $1.57 million (-6.8% YoY), creating a buyer's market in a historically overheated sector.

This dip presents an opportunity. Investors should focus on properties near upgraded infrastructure:
1. Beach access paths (e.g., 26A and 36A Avenues) with new boardwalks.
2. Multi-use pathways like Waterway Boulevard, which combine recreation with drainage resilience.
3. Marina areas, where dredging and green space development attract high-end rentals.

Properties with 3+ bedrooms and amenities like pools or golf course access (e.g., Wild Dunes) already outperform, generating $1,923 ADR in peak months.

The Risk-Adjusted Case for Early Investment

Critics might cite Isle of Palms' financial challenges—rising municipal expenses and an uncertain funding source for the 2027 Beach Nourishment Project. Yet, $13 million in secured grants and the city's $50.1 million cash reserves (as of March 2025) suggest fiscal stability. Meanwhile, Sullivan's Island's 46.9% YoY price surge hints that Isle of Palms' dip is temporary—a buying window before its own cycle rebounds.

How to Invest: Target the Undervalued, Leverage Amenities

1. Buy Below Asking: 84.6% of June 2025 sales closed below list price. Focus on mid-range properties ($1–1.5M) near completed infrastructure.
2. Add Scalable Amenities: Convert underutilized spaces into short-term rentals (STRs). With 99.8% of listings as entire homes, demand for family-friendly units is clear.
3. Track Municipal Budgets: Monitor upcoming projects like the Palm Boulevard drainage upgrades (Phase 4, 38th–41st Avenues) for early access to emerging corridors.

The Bottom Line: Infrastructure as a Leading Indicator

Coastal resort communities like Isle of Palms thrive when infrastructure keeps pace with demand. Sidewalks, bike paths, and drainage systems aren't just practical—they're vote of confidence in an area's future value. With tourism metrics signaling sustained demand and prices momentarily softening, now is the time to act. Investors who pair data-driven insights with a focus on location and amenity-rich properties stand to profit as Isle of Palms' revitalization continues—and spreads to neighboring markets.

Investment Thesis: Buy now in undervalued, infrastructure-adjacent properties. Hold for the next wave of growth as tourism booms and municipal projects solidify the island's appeal.