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LBI Real Estate Vacant Land

LBI Real Estate Vacant Land

Vacant Land in the Long Beach Island NJ Real Estate Market

Vacant land in the Long Beach Island (LBI) real estate market represents one of the strongest opportunities for buyers, investors, and builders looking to customize their dream home at the Jersey Shore. Whether you’re exploring tear‑down properties, searching for a rare open parcel, or planning a brand‑new construction project, LBI offers exceptional long‑term value and flexibility. With limited supply, high demand for modern coastal homes, and continually rising property values, vacant land and tear‑downs on Long Beach Island provide a strategic entry point into the LBI NJ real estate market. From oceanblock lots to bayfront building opportunities, understanding how land value, zoning, and construction potential come together is essential for making informed decisions on LBI.

LBI Real Estate Vacant Land and Building Options

LBI New Jersey Real Estate

Purchasing vacant land or a tear‑down property on Long Beach Island (LBI) requires a clear understanding of local zoning laws, building regulations, and setback requirements. Every town on LBI has its own rules, and buyers should review them carefully before making an offer. While lot size is a major factor, other issues—such as the distance between neighboring homes, required side‑yard setbacks, front and rear yard regulations, and special rules for oceanfront and bayfront parcels—play an equally important role. Waterfront properties, for example, must comply with CAFRA (Coastal Area Facilities Review Act) regulations, which govern development near sensitive coastal areas.

How Building Rules Differ by Town on Long Beach Island

Zoning and building guidelines vary from town to town, which can significantly affect the size and style of the home you can ultimately build. Below are a few general examples, but rules vary from lot to lot based on setbacks, neighboring homes, and a host of other factors. Be sure to check what can be built with a survey and the town's local building department. 

  • Long Beach Township, Surf City, Ship Bottom, and Barnegat Light:
    In most zones, you can build a footprint of roughly 33% to 35% of the lot size, assuming standard setbacks. On a 50x100 lot (5,000 sq. ft.), this typically allows a 1,650 sq. ft. footprint (5,000 × 33%). With a second floor, the total living space can usually be doubled—although decks count toward the total square footage.

  • Beach Haven and Harvey Cedars:
    Beach Haven and Harvey Cedars use a different formula—total living area cannot exceed 50% of the lot size. A 5,000 sq. ft. lot would therefore allow a maximum house size of 2,500 sq. ft.

It’s also important to note that these calculations assume a perfect box‑shaped structure. Real homes include architectural features—such as roof pitches, overhangs, interior cut‑ins, and stair towers—that typically reduce usable square footage by 5%–10%.

Typical Setbacks on LBI

Most zoning districts on LBI require:

  • 15 feet of separation between neighboring structures, and

  • Side‑yard setbacks of approximately 4 feet and 11 feet, depending on the town and zone.
    You will also need to account for front and rear yard setbacks, which vary by municipality.

Because these rules can influence both building size and design, buyers are strongly encouraged to review zoning with a builder, architect, or land-use attorney before purchasing.

New Construction Costs on Long Beach Island

Building a new home on LBI generally costs $350 and $600 per sq. ft., depending on architectural complexity, finishes, and upgrades. A 2,000 sq. ft. home, for example, typically costs between $700,000 and $1,200,00,000, not including the land purchase price or landscaping. Premium features—such as rooftop decks, upgraded trim packages, custom kitchens, and engineered pilings—can increase costs.

Vacant Land & Subdivision Rules in the LBI Real Estate Market

True vacant land on Long Beach Island is extremely rare today. Most of the Island has already been developed, and many remaining undeveloped parcels are either:

  • attached to existing homes (requiring a formal subdivision), or

  • part of environmentally protected areas where building is prohibited.

Subdivision Requirements

In most LBI towns, a newly created lot must be at least 50 to 60 feet wide by 100 feet deep (a 60x100 lot as an example). However, there are exceptions. If a neighborhood is primarily composed of smaller lots, a subdivision may be approved as “conforming” if the new parcel matches the size of surrounding lots.

Because subdivision rules vary and can be complex, buyers should always consult an engineer, planner, or land‑use attorney before moving forward with a subdivision application.

Protected Land on the South End of LBI

The southern portions of LBI include large tracts of land preserved by the State of New Jersey. These areas cannot be developed, which further limits the supply of buildable land. As a result, most new construction on LBI occurs through tear‑downs—removing an older structure and replacing it with a modern, elevated home that meets current flood and building codes.

The Opportunity

Despite the limited supply, vacant land and tear‑downs on Long Beach Island remain one of the best opportunities for buyers looking to build a custom home. Whether you’re planning a primary residence, vacation property, or investment home, understanding zoning, setback regulations, and construction costs will help you make a smarter, more informed decision in the LBI NJ real estate market.

Nathan Colmer

C: 609-290-4293 O: 609-492-1511 Email Me

Whether you’re considering purchasing vacant land, evaluating a tear‑down, or preparing to sell a buildable lot on Long Beach Island, I’m here to guide you through every step of the process. Navigating zoning rules, setbacks, subdivision requirements, and construction options can feel overwhelming—but with the right expertise, it becomes a clear and strategic path. I help buyers identify the best opportunities for new construction and long‑term value, while ensuring sellers position their properties to attract serious, qualified interest. If you’re exploring land or redevelopment opportunities on LBI, I’d be happy to put my local market knowledge and experience to work for you.

Nathan Colmer LBI Real Estate Agent
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