Summer 2022 Will See A Drop Off in Rentals on Long Beach Island

Summer 2022 Will See A Drop Off in Rentals on Long Beach Island

Long Beach Island Real Estate Summer Rentals and Coronavirus

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

COVID has changed many aspects of life, and it has undoubtedly impacted the LBI real estate market. We see high demand in the sales market and a much higher price point than a year ago. Some buyers purchase a home with a reliance on the summer rental market, and while this rental market is stable, Summer 2022 will likely see a drop-off in rentals. Buyers in the LBI real estate market need to be aware that the rental market is subject to change, and the high prices and high demand we currently see may slow down in the next few years. This could create a financial challenge for some buyers if they have purchased a home in a less-rentable location and have a dependence on this rental income.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Summer 2022 Will See A Drop Off in Rentals on Long Beach Island

While nobody knows the future, there are several compelling reasons to expect a slowdown in the LBI real estate rental market and possibly the sales market in 2022. Chief among these are:

  • COVID vaccines will be more widely distributed by 2022
  • It is likely that with more vaccinations, many travel restrictions will be lifted.
  • Those looking to vacation will likely seek other destinations after visiting Long Beach Island and the Jersey Shore for the past two years.

We are getting more and more positive news about Coronavirus and vaccines’ production distribution every day. As this process escalates, we should see more and more of a return to a pre-COVID lifestyle. This will likely include eliminating the travel restrictions that have completed many to spend their summer vacations at the Jersey Shore; Long Beach Island is among these summer destinations. Many individuals and families have happily visited Long Beach Island for the past two summers. While it is likely that many will make return visits, it is also expected that they will want “something different” once they are permitted to do so. This sentiment will likely lead to a drop off in the number of summer rentals taking place on Long Beach Island. That could create a problem for some homeowners who have purchased less desirable locations or homes that are not set up to excel in the summer rental market. Above all else, buyers have to understand what determines value in the LBI real state sales market. Much of what determines value in the sales market also translates to a substantial rental property. Unfortunately, COVID has created a scenario in which some buyers made emotional and uninformed decisions, and this could lead to financial strain for some. There is also a small chance that some of this strain could lead to more homes coming on the sales market in 2022-2023, although with inventory levels being so low, it is doubtful it would make any significant impact on pricing in the sales market.

Long Beach Island Real Estate Summer Rentals and Coronavirus

There are many ways for my predictions above to be proven wrong. That said, there is a logical path that buyers and sellers can follow that can lead to the scenario above playing out. The real takeaway is that buyers need to be very careful when planning their purchase, understand what creates value on Long Beach Island, and make a smart purchase that will hold its value in both the sales and rental market. If you have any questions about buyingselling 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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