Long Beach Island Real Estate New Construction Oceanfront Sales Data
Long Beach Island Real Estate
The oceanfront market has been one of the hottest markets on Long Beach Island. This is especially true of new construction oceanfront homes. Over the past few years we have seen larger and larger oceanfront homes be developed with top of the line amenities like in-deck pools overlooking the beach, fire pits, outdoor kitchens and of course, endless views. Much of this is due to zoning changes in Long Beach Township, the largest of the towns on LBI, which increased the building height to 36 feet. This extra height has allowed for the construction of more living space thus increasing the overall value of the home and making older oceanfront homes at a noticeable disadvantage in the market. Tracking LBI new construction oceanfront sales over the past 5 years shows some very interesting trends. There has been a significant increase in the number of oceanfront homes sold and the overall sales volume since this change was made in 2013.
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Long Beach Island Real Estate New Construction Oceanfront Sales Data
In the simple chart below I have grouped all oceanfront new construction sales on LBI year by year and enclosed the total sales volume of these homes.
| Primary Year | Sales Volume | Number of Sales |
| 2013 | $9,650,000 | 2 |
| 2014 | $9,625,000 | 3 |
| 2015 | $17,711,000 | 5 |
| 2016 | $20,741,650 | 6 |
| 2017 | $44,695,000 | 12 |
| 2018 | $18,275,000 | 6 |
As you can see, the number of sales has almost DOUBLED year over year and the sales volume has kept pace. This has been fueled by the new regulations that allow for larger homes, and subsequently higher prices, but also a strong demand for the best location on LBI. Buyers in the LBI real estate market are clearly willing to pay the price for the most valuable home in the most valuable location in our market. At the time of my writing this article there are 5 oceanfront new construction homes pending. Assuming they all close in 2018, the number of sales will be almost identical to 2017. While most of these homes are end user homes, oceanfront rents have followed suit with weekly rental rates for a new home on the beach in the area of $20,000-$25,000. With the potential to gross so much money these homes can even make sense from a purely investment point of view. One data point that is absent from my chart above is how many tear down oceanfront homes were sold to end users. The above sales represent only spec projects, homes that were bought to be flipped. There are a great number of oceanfront homes that have been bought and re-built by an end user which can reduce the overall investment considerably.
Buying an Oceanfront Home in the Long Beach Island Real Estate Market
Buying an oceanfront home on LBI carries with it the most expensive location to not only buy but also maintain. The cost of maintenance on the beachfront is much higher than even a home one back. Additionally most oceanfront homes fall in the V flood zone which can carry annual flood insurance rates of $10,000 or more. When looking for an oceanfront home on LBI there is a great deal more that goes into the transaction. I am happy to provide you as a buyer an overview of what to look for when shopping for an oceanfront home on LBI. For more information about buying an oceanfront home in the Long Beach Island real estate market or about LBI new construction oceanfront sales please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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