Affordability in the LBI New Jersey Real Estate Market
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Are Long Beach Island Homes No Longer Affordable? 
Are Long Beach Island Homes No Longer Affordable? 
Are Long Beach Island Homes No Longer Affordable?
Long Beach Island Real Estate
For those looking to buy a home in the Long Beach Island real estate market, affordability should be a topic that is well understood. Everybody is aware that prices have risen significantly over the last eighteen months or so. There is no denying that. In fact, in 2021 alone, the average price of a single-family home in the LBI real estate market has risen around 12.5%! This begs the question, are Long Beach Island homes no longer affordable? The short answer is no (but also yes for some buyers). While prices have risen, three factors help to keep a home on LBI affordable. They are:
- The LBI real estate rental market
- Very low interest rates
- Better use of money elsewhere
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Are Long Beach Island Homes No Longer Affordable?
One of the most impactful parts of the Long Beach Island real estate market is the summer rental market. Summer tourism quite literally sustained the local economy from retail stores to restaurants and the LBI real estate market itself. As prices of homes have risen, so too has the rental market increased. The higher rents that homeowners are charging helps to dramatically offset the cost of ownership (which is often lower than expected thanks to low interest rates), which can actually make the home more affordable.
Low interest rates are perhaps the most apparent circumstance helping to keep the LBI real estate market affordable. While prices have risen, the cost of owning the home has fallen thanks to a drop in interest rates. While it is not a true offset, meaning the prices of homes in the LBI real estate market have risen faster than rates have fallen, the lower rates still make the housing market sustainable, if not affordable.
The lower interest rates have also created many scenarios where it makes more sense to take advantage of the lower interest rates and deploy money elsewhere, for example, in the stock market. While this needs to be discussed with an accountant and financial planner, many buyers take advantage of low mortgage rates to buy a home and keep the bulk of their money invested in equities.
Affordability in the LBI New Jersey Real Estate Market
There is no question that a buyer in the LBI real estate market will pay more than they did a year or two ago, but that does not mean that opportunities don’t exist or is a bad time to buy. There are many reasons to own a home in the Long Beach Island real estate market, and for most buyers, it is still very affordable. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
You May Also Like:
LBI Real Estate Prices are Likely to Increase
Building a Home in the LBI NJ Real Estate Market with Construction Financing
Fewer Showings in the LBI Real Estate Market
Long Beach Island Homes With Pools