Homes in the outlying areas go for as little as $80,000, but houses within Rehoboth city limits average about $150,000. Properties about two to three blocks from the beach cost between $250,000 and $350,000, with beachfront properties considerably more expensive.

Two-bedroom condominiums there range in price from $50,000 for a modest place to about $150,000 for a unit that fronts on the ocean. The region's market has not entirely rebounded from the passage of the Tax Reform Act in 1986, which made ownership of investment properties less attractive, according to local brokers. Its strongest markets are the retirement community-oriented new developments in West Ocean City.

Vacation cottages there start at about $50,000, with three-bedroom, two-bath homes within walking distance to the ocean selling from $70,000 to $130,000. Oceanfront homes in pricey communities such as Duck, however, range from $350,000 to $750,000.