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The property the town was created on, along with much of the surrounding region, was once possessed by Englishman Thomas Fenwick. In 1869, businessman Isaac Coffin constructed the first beach-front cottage for paying guests. Quickly after, other simple boarding homes were constructed on the strip of mud, with the action attracting leading entrepreneurs from the Md Eastern Coast, Baltimore, Philadelphia, and Wilmington.
The Ocean Resort, the first major resort within the city, opened July 4, 1875. Aside from the shore and sea, it offered dancing and pool rooms to the guests of its more than 400 rooms, and for a long time it was the northern-most drawing card in Sea City. By 1878 tourists might come by railway from Berlin to the shores of Sinepuxent Bay across from the city. By 1881, a line was finished across Sinepuxent Bay towards the coast, bringing train travellers straight to the city.
Fast growth of Sea City happened during the post-war growth. In 1952, with the conclusion of the Chesapeake Bay Link, Sea City became readily obtainable to individuals in the Baltimore-Washington Metropolitan Region. In 1964, with the conclusion of the Chesapeake Bay Bridge-Tunnel, a entire new path for the south was exposed. Sea City became among the greatest holiday places of the East Coast.