Why Buy On LBI?

Why Buy On LBI?

  • Overall Price Stability and Appreciation

    Long Beach Island, NJ, has a history of stability in its real estate market and consistent home price appreciation. For example, in 2013, the average sales price was $817,732 with 403 sales. By 2023, this had climbed to $1,938,974 with 372 sales, reflecting a nearly 140% increase in sales prices over 10 years and 65% in just the past 3 years.

    Even during challenging periods, such as the 2007-2009 housing crisis, LBI’s market proved resilient. While national home values dropped over 20%, LBI saw only a 10% decline at its peak.

    The island’s appeal is further strengthened by increasing property values, steady demand, and ongoing new construction—much of it originally driven by Super Storm Sandy recovery efforts and flood plain management rules. These developments not only enhance individual properties but add value across the island. Additionally, LBI experiences minimal foreclosures, short sales, and distressed sales, solidifying its reputation as a sound investment.

    As with any major purchase, timing and expertise are key. Working with an experienced agent like myself ensures you’re equipped to make informed decisions. While past trends don’t guarantee future outcomes, they provide valuable insight into potential gains and cash flow.

  • The LBI Rental Market

    The most common investment properties on LBI are used for seasonal or year-round rentals, including single-family homes, multi-family units, condos, and mixed-use properties. Commercial properties, such as retail spaces, restaurants, and mixed-use buildings, also present strong investment opportunities due to the island’s thriving tourism industry and year-round community.

    LBI’s rental market has seen significant growth over the past decade, with a sharp increase during the pandemic. Currently, the average weekly rate for a peak-season rental (June-August) is about $6,000—a 45-50% rise from 2018 to 2023. Despite these increases, rental demand remains robust, with inquiries growing year-over-year (excluding 2020-2021 due to travel restrictions).

    Many investors leverage peak summer rental income for 10-12 weeks to offset mortgage payments, utilities, and taxes. Commercial property owners, meanwhile, benefit from LBI’s consistent foot traffic, which supports strong rental income and long-term value appreciation.

    It is important, however, for commercial landlords to conduct due diligence when selecting tenants. A profitable and durable business is essential for success in a seasonal area like LBI, as not every business model thrives in this unique market.

    Whether you’re considering residential or commercial investments, LBI offers a unique market with proven profitability. Let’s connect to explore the opportunities and determine if an LBI investment is right for you!

  • Location

    Clearly, coastal real estate is often more expensive than non-coastal real estate due largely to its scenic location and proximity to the ocean; overall leading to incessant demand. Undoubtedly, coastal real estate can also provide a higher return on investment due to this elevated demand and limited supply, especially on Long Beach Island. Additionally, shore properties are highly desirable for a multitude of reasons other than for financial goals. Living on or close to the water is a dream many people desire throughout their lifetime. Whether it be someone who loves to surf, swim, fish, boat, wake board, lay on the beach, paddle board, enjoy the outdoors, or a combo of all; LBI is the place. As a result of all of these factors, properties on island typically see much higher rates of appreciation than a property on the mainland. Long Beach Island, NJ is rated as one of the top locations on not only the Jersey shore, but the entire east coast with the prices and constant demand to show for it. Learn more about LBI by clicking here!

  • Market Statistics

    Average Price:

    -November 2014= $926,620

    -November 2024= $2,000,000

    Median Price:

    -November 2014= $759,750

    -November 2024= $1,699,000

    Sales-To-List-Price Ratio:

    -November 2014= 93.7%

    -November 2024= 98.6%

    Cumulative Days on Market (CDOM):

    -November 2014= 200 days

    -November 2024= 61 days

    Active Properties For Sale:

    -November 2014= 800 properties

    -November 2024= 169 properties

    Number of Sales:

    2014= 531 homes

    2024= 318 homes*

Average Sales Price By Year

All numerical values are in dollar amounts. Source: BrightMLS® 2024; Residential, Multi-Family, & Land sales data.

LBI Home Search

Purchasing an Investment Property

Many individuals purchase real estate on Long Beach Island not only as a first or second home, but also as a business/rental opportunity. Contact me today to learn more about investment properties on LBI and whether it is the right decision for you!

  • The most common type of investment property on LBI is used for seasonal/year-round rentals. These properties often can be single-family, multi-family, condos, or mixed-use properties. The island is known for its steadily growing sales & rental market boasting a large boom in demand and price over the past 10+ years. To put this into perspective, the average weekly rate for a rental property in peak season (June-August) is roughly $6,000. This number has drastically increased over the years, displaying an average rent increase of about 45%-50% since 2018, adding to the already strong and profitable LBI rental market.

    At the same time, home prices have increased over the last decade tremendously. While this may seem daunting when purchasing a property, it is important to understand your property’s value will appreciate over the years building equity. For example, the average sales price for homes sold on island for the year of 2016 was $899,519 while in 2022 it was $1,679,641. This is an increase of almost 87% in just 6 years! These numbers reflect only the average sales price of residential homes sold in 2016 and 2022.

    Much goes into the due diligence and process of finding the right investment property for you. Reach out to me to learn more or start your search today!

  • Commercial Use Properties on LBI can be quite lucrative as a landlord or property owner. The island offers many opportunities to purchase a commercially zoned property in order to establish a business or fill the property with a tenant. Usually, commercial tenants sign leases for 3-5 years on LBI, offering a potentially more stable rental income than single-family. When valuing a commercial property it is important to properly engage in thorough due diligence of the property history, past earnings, annual debt service, building operation costs, “cap rates” or return, and more. As your Realtor I will help guide you through this process. Reach out today to learn more about this!

  • Mixed-use properties are relatively common on LBI. Many of the commercial buildings for sale also include a bonus residential space for you to either occupy or rent-out to a tenant. Properties such as these can offer a high-rate, long term tenant in the commercial portion of the property while simultaneously allowing for a long term winter or peak-rate summer rental.

LBI Investment Property. Learn about investment properties on Long Beach Island, NJ.

Buyer Information

Learn important information pertaining to a buyer in this real estate market. Learn about the process, typical closing costs, mortgage info, insurance info, local recommended professionals, and more!

Important Real Estate Links

In need of valuable resources to navigate the real estate world effectively? Look no further. My collection of crucial real estate links is curated to provide you with the essential tools and information necessary for your property endeavors. Ready to embark on your real estate journey? Explore my directory of links today and take the first step towards achieving your real estate goals. Your success story begins here.

Current Market Update

Interactive Map