Long Beach Island, NJ historically is known for its stable real estate market and steady appreciation in home prices over the years. To put this in a numbers perspective, the average sales price for the year 2013 on island was $817,732 with 403 sales. This past year, 2023, realized an average sales price of $1,938,974 with 372 sales. Despite the island’s (and nation’s) current struggles with inventory, rates, and inflation; prices have increased on average almost 140% in 10 years & about 65% in the past 3 years. Looking back even further to the detrimental years of 2007-2009, the island saw a dip in sales price by a percentage significantly less than most areas in the United States. The island observed prices dropping by only about 10% at its peak when compared to the national average of home values dropping 20% and higher. In addition to stable prices, increasing property values, perpetual demand, and market shelter; as a result of Super Storm Sandy (among other factors), the island has and is continually adding more new construction. New construction properties add value not only to the piece of land it is sitting on, but the entire island itself. Couple all of these factors with the fact that LBI sees very few foreclosures, short-sales, and distressed sales; the argument that the purchase of property on island being a solid investment is justified.

With every investment/major purchase in your life, timing and knowledge is key to receiving the most value for your dollar. Hiring an agent with experience in this field, such as myself, can go a long way in this market. While looking at the past cannot guarantee the same events will continue to occur, the use of past data and trends should help you predict future gains and cash flow.

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 balanced rental market boasting a large boom in demand and price over the past 10+ years, with the largest spike in rent observed over the pandemic. To put this into perspective, the average weekly rate for a rental property in peak season (June-August) is currently about $6,000. This number has drastically increased over the years, displaying an average rent increase of about 45%-50% from 2018 to 2023, adding to the already strong and profitable LBI real estate market. Despite rental rate growth, demand remains steadfast with rental numbers/inquiries ever increasing year-over-year (excluding 2020-2021 due to out-of-the-country travel restrictions).

Many investors and owners alike use the summer season to rent their property at the peak weekly rate for about 10-12 weeks. Many homeowners often use their income from renting to cut their mortgage payments in half, pay for annual utilities, real estate taxes, and more. Reach out today to see if a rental investment on LBI is worth it for you!

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!