Don’t Fence Me In

August 6, 2025

Time to read [5 minutes]

  • Generally, The Cost To Install Fences Isn’t Covered By The Added Value
  • Fences Considered Part Of Landscaping Which Has Specific Contributory Value
  • Ken Griffin Wants A Huge Fence For His $1 Billion+ Home Assemblage

Years ago, I remember seeing a TV commercial by Mercedes-Benz that used the Gene Autry song “Don’t fence me in.” In fact, Mitsubishi, Mini-Cooper, Dodge, and others love using this song in their ads. When I saw this Realtor.com article headline Billionaire Ken Griffin Wins Permission To Build Tall Fence on Palm Beach Compound, all I could think about was that song and all those commercials. Those advertisers did their job. And because I’m a wannabe hipster (partly defined as someone searching for irony), the irony that one of the wealthiest men in the US who owns homes all over the place, wants permission to put up a large fence was not lost on me. As someone who has rarely appraised homes with fences (co-ops and condos dominate my personal appraisal world), I thought this would be a fun topic to explore.

Source: Wikipedia

Manhattan Fences Enable Privacy

In Manhattan, virtually every townhouse we appraise has a fence in its backyard. The average townhouse sits on a 20′ x 100′ lot, and the building is 20′ x 50′ x 4 stories. That leaves a backyard of 20′ x 50′, which is minimal. Here’s how I explained the valuation of the space (not fences) for New York Magazine a while ago. Note my hand-drawn explainer.Outdoor space is generally such a tiny amenity here that fences are needed. I have appraised properties where three townhouses share a backyard.

In my 40-year career, I’ve never seen a property without a fence or a neighborhood without one. In Manhattan, the value is less than the cost of installation.

Ken Griffin Wants A ‘Supertall’ Fence

Source: Realtor.com via Google

As the Realtor.com article suggests, Griffin wants a taller fence to assure his privacy. I would like the same if I had the collection of assets he has. I describe him this way in the Realtor.com article: “He’s a whale’s whale,” property appraiser Jonathan Miller, of Miller Samuel, tells Realtor.com. “In my career, I’ve really never run into somebody that singularly has dominated a segment of the market in so many different places. He’s a prolific buyer of full retail-price real estate.” For safety, someone as visible as he is needs more security and privacy, especially since what he collects is very ostentatious.

When my parents lived in Shelter Island before moving to Florida, they installed a deer fence in their backyard. It was above the allowed height restriction, so when they were forced to lower it, a deer got stuck jumping over it. Oof.

A Way To Think About Fence Value

Everything I have read about fence valuation, it seems to generate a value of about half of their cost to install. Redfin suggests a value of about 30% to 70% of their cost which is an incredibly wide range but consistent. Quite a few appraisers have opined on the topic – here’s one. Another way to think of their ROI since they are not often broken out separately in a valuation is that fences are considered part of landscaping and landscaping can add about 15% to value.

Final Thoughts

Gotta love short and sweet posts like today’s. I don’t like to be “fenced in.”

The Actual Final Thought – After an intense post on Monday, I needed to find myself and I did it with “Where is my mind” which reminded me to play the original from my favorite band. Make sure you catch the first 10 seconds of both. “Stop.”

HGAR’s IMPACT: The Member Experience

I’m excited to speak at IMPACT: The HGAR Member Experience on September 29. I’ll be joining real estate professionals from across the region to explore what’s next in the housing market, economic opportunities and building community. Join me and be part of the conversation that’s shaping what’s next. Learn more and register. 

[Podcast] What It Means With Jonathan Miller

The Think about ‘Trading Places’ But With Lower Mortgage Rates episode is just a click away. The podcast feeds can be found here:

Apple (Douglas Elliman feed)   Soundcloud  Youtube

Monday Wednesday Mailboxes, Etc. – Sharing reader feedback on Housing Notes.

August 4, 2025: Killing The Messenger Destroys Credibility [insert Oxford Comma] But Probably Lowers Mortgage Rates

  • Great piece….Barry’s was a banger as well lol. Tariff are pretty much a VAT but nobody calls that out.  Ironically we the people pay the new “penalty” for India buying Russian oil…the nightmare never ends. Thanks for usinging facts to explain your correct conclusions and enjoy the most recent episode of South Park!
  • Jonathan thank you!
  • Thanks Jonathan. The big threat to mortgage rates dropping is inflation. If we see inflation spike, say from idiotic tariffs, that will make it difficult for the Fed to lower rates. 

Did you miss the previous Housing Notes?

August 4, 2025

Killing The Messenger Destroys Credibility [insert Oxford Comma] But Probably Lowers Mortgage Rates

Image: NY Times

Housing Notes Reads

Market Reports