How to Invest in Long Beach Island Real Estate—Safely and Strategically (2025)
- Nathan Colmer
- 3 hours ago
- 5 min read
How to Invest in Long Beach Island Real Estate
Long Beach Island (LBI), New Jersey, is a high-demand coastal market known for steady appreciation, tight inventory, and strong summer rental income. Whether you’re buying your first beach house or expanding an investment portfolio, a safety-first, data‑driven plan will help you protect capital and maximize returns. Below is a practical guide—grounded in current local stats and rules—to help you understand how to invest in Long Beach Island Real Estate.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
1) Understand the LBI Real Estate Market
Supply, prices, and pace. As of fall 2025, LBI’s median sale price sits around $1.8M, with price per square foot near $1,030 and typical days on market ranging from the low‑50s to about 63 days—a sign of steady demand despite seasonal fluctuations. Recent monthly recaps also show low overall inventory, resilient pricing at the high end, and sale‑to‑list ratios in the mid‑90s—consistent with a competitive but rational market.
Property types and investor fit.
Condos: Lower entry price and reduced maintenance—ideal for first‑time investors or hands‑off ownership. Market updates this year show condo segments moving but with longer DOM when pricing is aggressive; selection is improving as inventory ebbs and flows.
Single‑family homes: The core of LBI’s market, with average sale prices between $2.2M–$2.7M across winter–spring snapshots in 2025. These are the top performers for weekly rentals and long‑term growth.
Oceanfront Market: 2025 year‑to‑date data shows 13 oceanfront sales averaging $5.73M and ~$1,521/sqft, with close‑to‑list ratios around 96%—evidence of deep, confident demand in prime locations. [buylbi.com]
Locations that rent and appreciate. Oceanside, ocean‑block, and oceanfront properties in towns like Beach Haven, Long Beach Township, Surf City, and Barnegat Light consistently attract family renters and end‑users looking for proximity to the beach, walkability, and larger lots. For current single‑family pricing and inventory trends across 2025, see Nathan’s mid‑year market review on BuyLBI.com.
Helpful links:• LBI 2025 Single‑Family Mid‑Year Review — BuyLBI.com• Oceanfront Market 2025 — BuyLBI.com• 2025 Monthly Sales & DOM snapshots — BuyLBI.com Market Updates
2) Define Your Investment Strategy
Vacation rentals (weekly). LBI’s summer season is intense, with well‑located, updated homes commonly achieving $5,000–$25,000+ per week depending on beds, amenities (pool/hot tub), and beach proximity. Larger, premium builds in top blocks can command the upper ranges. [buylbi.com]
Buy‑and‑hold for appreciation. Limited land, modern elevated construction, and persistent demand support long‑term value—especially in oceanside/oceanfront corridors. Monthly reports through 2025 show steady price‑per‑sqft and strong sale‑to‑list ratios, even when unit sales ebb seasonally. [buylbi.com]
Renovate or rebuild (fix‑and‑flip). Value‑add opportunities exist in legacy cottages on prime lots. Before you budget, verify flood zone, elevation, and code requirements (especially in V‑zones)—these directly affect carrying costs, timelines, and resale appeal.
3) Conduct Thorough Due Diligence
Market & rental comps. Use current local reports for pricing, DOM, and sale‑to‑list ratios. Validate rent potential with recent weekly rates and occupancy patterns across towns and blocks. [buylbi.com]
Flood & elevation. On LBI, insurance cost hinges on Base Flood Elevation (BFE) and flood zone (A/AE vs. V). Always request the elevation certificate and confirm foundation type and vents. FEMA’s map portal can verify a specific address.[buylbi.com]
Permits, inspections & liens. Title/municipal searches should confirm ownership, open permits, and any encumbrances. For rentals in Long Beach Township, annual Business/Rental Registration is required (application/insurance; April 1 deadline and fees). Other municipalities on LBI have their own processes—confirm before you list.
Finance and taxes. Work with your CPA/financial advisor on depreciation, passive‑loss rules, and potential 1031 exchanges, mindful of New Jersey’s 2025 mansion tax update on $1M+ sales (shifted cost to sellers; higher tiers up to 3.5%). Market watchers flagged impacts to pricing strategy and listing behavior on LBI mid‑summer. [buylbi.com]
4) Work with Experienced Professionals
Your local real estate partner: Nathan Colmer, Van Dyk Group — Investment‑Focused LBI Agent
Nathan is a lifelong LBI real estate professional who specializes in investment properties—single‑family, oceanfront luxury, and high‑performing vacation rentals. His monthly and mid‑year market reports track inventory, DOM, price‑per‑sqft, and sale‑to‑list ratios, giving buyers and sellers a clear, numbers‑first picture of opportunity on the island. He has represented investors across the South End (Beach Haven/Long Beach Township) and North End (Surf City/Harvey Cedars/Loveladies), with documented results in premium listings and data‑backed pricing strategies. Connect at 609‑290‑4293, or explore his analyses and listings on BuyLBI.com.
Financial advisor/CPA. Align the purchase with your broader plan: rental income, depreciation schedules, entity structure, and exchange options. (New Jersey’s tax changes and high‑value thresholds can influence timing and net proceeds.) [buylbi.com]
Insurance agent (coastal expertise). Obtain homeowners + flood quotes early. Ask how BFE, A/AE vs. V zones, foundation type, and flood vents affect premiums; many compliant, elevated homes see reasonable rates relative to value.
Property manager/rental platform team. If you’re not local, leverage a manager for booking, turnovers, and maintenance. LBI’s short season rewards professional marketing and consistent guest experience. Confirm municipal STR requirements before advertising. [buylbi.com]
Key Safety & Compliance Checklist (LBI)
Verify flood zone & BFE (request elevation certificate; check FEMA maps). [buylbi.com]
Budget insurance accurately (zone, elevation, vents, foundation).
Confirm municipal registrations/inspections (e.g., Long Beach Township annual rental registration & insurance).
Validate weekly rent comps with current platforms and local broker data. [buylbi.com],
Use current market reports for pricing, DOM, and negotiation strategy
How to Invest in Long Beach Island Real Estate
Long Beach Island (LBI), New Jersey, is a popular place to buy beach homes. People like to invest here because property values usually go up, there aren’t many houses for sale, and you can earn good money by renting to summer visitors. Whether you are buying your first beach house or adding to your investment portfolio, it is smart to use a careful, fact-based plan that prioritizes safety. I hope this helps you learn how to invest in real estate on Long Beach Island.
If you are looking to buy, sell, or invest in the LBI real estate market, contact me, Nathan Colmer, for expert guidance backed by years of local experience, deep market insight, and a proven track record in helping clients navigate LBI's unique market. My experience extends over 20 years of selling homes on Long Beach Island, with a special focus on second homes and investment properties. In addition to representing buyers and sellers, I personally invest in the LBI real estate market and can share my firsthand knowledge of this investment strategy. Whether you're searching for a vacation home, planning a wise investment, or ready to list your property, I can offer you personalized strategies and unmatched knowledge to help you succeed.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
