If you currently live anywhere but the Gulf Coast or deep South, and you are considering shopping for a home on the Mississippi Gulf Coast read before you buy. You may be surprised at how different homes are constructed on the Mississippi Gulf coast than they are in other areas. If you live in California, Arizona, or Nevada, do not look for rocks in the front yard.
People plant grass in their yards along the Gulf Coast. Much of the grass here is centipede which does not grow high or lush. If you are from the East Coast with lush lawns you must get used to this type of grass. The grass is just one of many differences, another reason to read before you buy.
Be aware of the cost of housing
Remember, if you are like most people who move here, you will want to save money, buying a bigger home because you can afford it may defeat the reason for coming here in the first place.
Lots of Trees
Mississippi was once one of the most forested states in the country. Forests still cover about half of the state. If you buy a house it was probably at one time a forested plot. On occasion, you may find a tree root when planting a bush.
Lots of Water
You can also find homes on water, a bayou, a creek, lake, bay, river, or pond. Many homes located on the water have docks and the waterways usually end up at a river that flows to the Gulf of Mexico. Some of the water is fresh, some salt water, and some brackish (a mixture). If you decide to find a home on water chances are good you can catch fish from your property. Some homes are located on a watercourse or body of water deep enough for a boat. It seems that every family has a boat.
The U.S. Army Corps of Engineers plays a large role in the area. If you want to build a pier or anything close to the water, you need Corps approval. I have never lived in an area where the federal government had such control as does the Corps in this area.
Style
Wind mitigation is a key reason why roofs look different here. Siding for homes varies from Brick to Hardy board to Vinyl. Stucco is not popular here as it is in the West. Brick homes can often receive lower insurance rates. You may find a home with wood siding. Forget about having a basement. The water table is usually too low.
Construction methods here are similar to other parts of the country. Above-grade homes are common. Their height is usually a foot or two off of the ground. If you want a house built on a slab, buy a newer home.
Building standards have been updated since the tropical storm Katrina came through the area. Some homes are located near water so they will have requirements about how high they are from the water. Some are built-in pilings and there is a minimum height to obtain a reasonable insurance rating.
Lots tend to be larger than in the West, read before you buy
Some existing homes have more than two garages including separate buildings and awnings to house their RVs. Lots tend to be larger here than in the West so many people can park their boat, travel trailer, or motor home on their property.
Homeowners associations are not common in the area except for newer developments. My association fees are $50 per year. If you prefer an area with an association you will be looking at a new or newer home. If you do not want one, you will have more choices.
New homes are available
There are many home builders in the area opening up small developments in forested areas, some as small as one street with ten or fifteen homes. It is important to note that space between homes is something noticeable if you are from a crowded suburb. In Southern California, you can have a 2,000 sq. ft. house on a lot as small as 5,000 sq. ft. Houses on the Gulf Coast tend to have more land than in other areas.
Many older homes in the area are small e.g 1,300 sq ft. It’s common to find a small older home built on two or three lots.
A benefit of buying an existing home is that many are on large lots of half an acre or even more. It is not uncommon to see a beautiful home set back off the street with a long driveway. As you drive around, you will see estate-sized homes on land with ponds. The settings are beautiful. Manicured lawns and lots of flowers.
One of the beautiful things about the Gulf Coast is the live oak trees that can live up to one thousand years. Such an oak tree is
located on interstate 90 in Biloxi and some tree experts estimate it at about 530 years old. These majestic live oak trees have weathered dozens of hurricanes and are still here.
If you love trees, you can buy a home in an older part of Ocean Springs and other communities with beautiful, large live oaks. New developments usually cut down all of the trees around the house but tend to leave trees at the property line.
Housing Market
Housing availability on the Mississippi Gulf Coast has been tight for the past few years. People often check out South Florida and then, find home prices on the Mississippi Gulf Coast are lower. The Gulf Coast has less traffic and is not as crowded. I was surprised at how many people buy here after visiting other Southern “hot spots”.
Home prices in 2022 are higher than last year and still increasing albeit at a lower rate. It’s a seller’s market but that may change to a more balanced market before long. Inventory is still tight, new home builders are still selling from blueprints.
Homes in Bay St. Louis for example have become more expensive (still far lower in cost than CA and other states) as some are remodeling historic homes into vacation homes. Pass Christian and Long Beach have some very nice older homes that come on the market from time to time.
Very few homes come on the market within the city limits of Ocean Springs. Most available homes are located in Gulfport and Biloxi along with newer areas north of I10.
Lots of Locations
You can select from a variety of situations. Look at homes along the beach from Ocean Springs to Waveland. High-rise condos in Gulfport and Biloxi. Mature housing on tree-lined streets. Housing developments are scattered around the Gulf Coast. You can even buy a lot and build your estate.
There are new developments all along the Gulf Coast for those who are more familiar with living in a master-planned development with an HOA. Just inland a few miles you will find beautiful properties on acres of land.
Some have their ponds stocked with fish. If you want to raise cattle, buy a ranch.
The variety of homes within a few minutes of the beach is impressive. Very big houses on large lots, small 1940s homes people call cottages or bungalows. Virtually every type of home you can imagine exists here. If you can’t find what you want, buy a lot and have your dream home built to your specifications.
Homes in the area tend to have at least an attached two-car garage. Some have three custom homes of which many can have more. Some custom homes have an RV garage or a boat garage. Most residents do not fence their entire yard. It seems that most residents do not have fences.
Unless the builder was attempting to separate their development from the forest or future developments. The open land concept is very nice. It’s something strange for those of you coming from suburbs in the West or cities.
Utilities
Natural gas is available in older neighborhoods. Some homes in semi-rural areas have installed propane tanks that function like natural gas. Propane provides heating and cooking with a large tank in the yard.
Almost all homes have sewers. This is not the case in semi-rural areas where homes in those areas have septic tanks. I have lived in a home with a septic tank, you forget it is there. These tanks go for years without any service. Cities and counties supply water to most homes along the Gulf Coast.
Some homes in semi-rural areas have wells. About the water, it is great. Naturally soft so you will use less soap. The nice thing about naturally soft water is that it does not corrode plumbing. What the Colorado River water does to plumbing fixtures in Southern California is criminal. If you have a large yard and/or pool, you can install a second meter. This will save you more money on your water bill.
Much of the electricity supplied along the Gulf Coast comes from cooperatives. That is, you are a part-owner, it is a cooperative. The power is reliable, I have not had issues with electronics. By the way, the cost of power is considerably lower in Ocean Springs than in Southern California. Some people have installed solar panels. Solar panels are not as common here because power costs are low.
Gardening
Few homes have sprinkler systems for lawn and vegetation. It rains often enough that watering the lawn is usually not necessary. Except perhaps a few days in the fall during the driest time. This may be a money saver if you live in an area where everything goes brown or dies without water. Rainwater is the best for anything that grows.
While it does rain along the Gulf Coast, it is not constant. More on this later. The point is that you can plant in the soil without digging through rocks or what appears to be concrete e.g. desert areas of the west.
The weather is warm most of the year so there are a wide variety of flowers and plants that will stay green all year long. You can grow vegetables and fruit including citrus in the area. Lawns tend to be comprised of St Augustine or Centipede grass. The University of Southern Mississippi indicates that Centipede grass “thrives on neglect”. Bluegrass and fescue with broad blades do now fare well in the area, they require too much care.
The buying process
Buying a home on the Gulf Coast is similar to buying a home in most areas. Mississippi uses the Eastern system. This means that earnest money is held by one of the brokers. At closing, all parties appear at the law firm where documents are signed and checks exchanged.
Mississippi is not a community property state so if two people are buying the home be sure to have both added in the paperwork as joint tenants if this is your wish before you show up for closing. The lending process is similar to that of any other area.
Some financial institutions in the area offer portfolio loans (where they hold the note and do not sell it to another). There are many current and former military in the area so everyone is familiar with VA loans.
This area does not qualify for a special adjustment by HUD for non-conforming loans. Most of the homes in the area are financed well within the “conforming” limit for Freddy Mac and Fannie Mae loans.
Ask the seller to install rain gutters
Note: When you have selected a home, try to get the owner to install rain gutters if they are not installed. It rains in this area, one reason why the vegetation is green. Homes without rain gutters may permit excessive moisture to get under the foundation attracting termites.
If it is a new home, the water falling from the roof may cut trenches in the grass or flower bed. For some strange reason, most homes do not come with gutters.
Property Taxes
Property taxes are due no later than February 1. Your property taxes are paid in arrears (at the end of the year for the previous year). The tax period is January 1 through December 31. You will not have to pay property taxes from the time you buy the home until the end of the year.
At that time you will receive your first bill. Do not be surprised if you go online after your buy your home and see the previous owner’s name remains on the tax roll until the next January.
You may want to file for homestead, you will receive a discount on your property taxes. If you are 65 or over, you will enjoy a significant reduction in property taxes (a $75,000 reduction in assessed valuation). You must file for either of these exemptions, it is not automatic. If you are a disabled veteran, there are additional benefits.
The property tax rate is somewhat complicated
The property tax rate is somewhat complicated, the county uses terms such as “mills” and “ad-valorem. I have found that a property purchased as a home is generally taxed at about 1% of the purchase price for a recent purchase. The rate goes down to about 7/10 of 1% for those over 65.
These numbers are ballpark, you can ask someone at the tax office to give you an idea of what you will pay after you buy but before your first tax bill. Depending upon the timing, you may miss the first year benefit of the exemptions above which will kick in the following year.
Property taxes are based upon assessments that must be made at least once each four years. The assessed values are not the actual market values. Some areas have higher tax rates than others. I live in unincorporated Jefferson County. My home has an Ocean Springs address and my tax rate is a little higher than a friend who bought a new home in unincorporated Harrison County.
If you are coming from a high tax state, the differences are minor since you are likely to save more than double what you were paying in property taxes even before you use the senior exemption.
Visit the state of Mississippi property tax portal by clicking here.
Insurance
Generally, a policy on a home valued at 250,000 that is not in a wind or flood area (more than one mile from the coast) will cost between $1,000 and $1,300 per year. If you live near the coast, your homeowner’s policy with wind and hail coverage can be in the $3,000 per year range.
This is just a ballpark, your location and other factors will determine the actual price. You should not be far off on basic calculations by using these numbers if the home is on high ground, well built, and generally north of Interstate 10.
A policy on a home in a wind area can cost double that with a supplemental for flood insurance of about $700 per year. I indicate these amounts because when I searched the web before I purchased a home in Ocean Springs, I could not find any information about the cost of insurance.
Keep in mind that insurance is based upon the cost of your home and where it is located. Generally, if you live South of I10 and closer to the beach, you will be required to have wind insurance and probably flood insurance as well (if you finance your home).
Agents in the area will give you a quote but they need an address. That’s the point of my estimate above, until you have an address how will you calculate the cost of homeownership from the comfort of your current home.
Flood insurance is usually issued by FEMA
Note: Flood insurance is usually issued by the federal government through local insurance agents. The cost is the same regardless of what agent you use. Consider buying it even if you live in an “X” flood zone (low probability of flooding) and your mortgage company does not require it.
There are many watercourses in the area, you may find that one a mile from your home floods for the first time in a generation and leaves you homeless.
I looked around the area at all types of homes before we decided to buy a new home on a bayou where we had a pier and boathouse constructed. That said, our second choice was to build a custom home on a sandy beach not far from our actual choice.
I was shocked to learn that I could design (with the help of a professional) a 2,000 sq ft home literally on the sand with the whole of the Gulf of Mexico as my living room for an all-in cost of less than $400,000.
If it were possible to get on the sand, not on the other side of a highway, but the sand in California, I would have to put another zero on that number plus the higher property taxes.
Note: The flood insurance program has changed effective April 1, 2022. The rating system changed intending to make the cost fairer. Ask your lender if they require it then ask your insurance agent for a quote.
Living on water
If you decide to buy a home near water, be sure to ask the agent to determine if the bayou, etc., could flood the property. Of course, any watercourse could flood the property with sufficient rain but what I mean here, is flooding with normal rainfall. Perhaps the water level comes up to a mid-yard in a location where you wanted to put a shed.
Most flowing water in the area is tied to the ebb and flow of the tides in the bays. The water can be fresh, salty, or brackish, Jackson, Hancock, and Harrison Counties are generally too close to the Gulf to have 100% freshwater flowing all of the time if you buy a home below Interstate 10.
If you plan to have a boat or build a boathouse it would be helpful to know the tides. Generally, real estate agents advertise “deep water” to differentiate between shallow water that would prevent taking a boat out any time of the day. Questions worth asking if you want to be on the water.
Coming from Southern California and not living on salty water, I had no idea that leaving a powerboat in the water would attract barnacles. After leaving the boat for a few months when I was away, I came back to find the bottom was fouled as well as the prop. I had to pull the boat out of my boathouse and have it repainted.
This time, I installed a boat lift. So the moral of this story is that if you want to be on the water, you need to remove your boat at the end of the day or install a boat lift.
Why you should buy vs rent
You may be thinking about renting your house. Think again. Read this article which includes a real house with real rents and a real cost. The difference between renting and buying is staggering.
This is not just a one-off. Perhaps it’s less expensive to rent in California but on the Mississippi Gulf Coast, it’s possible to buy for less. Click here and see.
Thinking about relocating?
Consider buying a home on the Mississippi Gulf Coast? Check out the Logan-Anderson, Gulf Coastal Realtors website by clicking here. You can see homes and lots for sale and read more articles about housing, finance, taxes, and the Mississippi Gulf Coast.
Two of our most popular articles on this site are: “Why I decided to retire in Ocean Springs, Mississippi” and “Why you need to retire on the Mississippi Gulf Coast”.
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