Wrong. Hint: Waterfront property. For some reason, the extra desirability for waterfront desirability does not show on the desirability overlay. In one of my cities I had two houses in an undesirable neighbourhood. The house with, according to the overlay, the smallest desirability evolved higher than the house with the largest desirability. However, one of the houses was closer to a lake! Can you guess which one?
Testing was needed. Counting the desirability as I was used to, and adding and removing gardens as I pleased, I found that the house two tiles from the closest water tile was unaffected. However, the house one tile from the water tile, was given a +10 secret desirability bonus. Fountains, whose graphic changes with desirability, was never affected by the waterfront.
By now, I was bored of testing. I only noted that the waterfornt house had two water tiles within the range of one from it.
Theory 1A: Water tiles are considered 5,0,0,0,0,0 water-desirable tiles.
Theory 1B: Water areas are considered one huge 10,0,0,0,0,0 warer-desirable blob.
Theory 2: Water-desirability only affect house evolution.
So, finally the question to the C3Heaven community: What is the correct behaviour of the waterfront?