LBI Real Estate New Construction Teardown Properties
- 2 hours ago
- 4 min read
Why Building New on Long Beach Island Continues to Drive Value
The Long Beach Island real estate market has long been defined by limited land, strong demand, and evolving buyer preferences. As older homes age and building standards continue to change, teardown properties have become one of the most significant opportunities for buyers, builders, and investors looking to build new on LBI. LBI Real Estate New Construction Teardown Properties can be found in a variety of locations and price points throughout Long Beach Island.
Whether a home is functionally obsolete, storm-damaged, or affected by flooding or infrastructure issues, many Long Beach Island properties derive the majority of their value from the land itself. This makes teardown and new construction opportunities a powerful segment of the LBI market. These projects have tremendous value and potential, with a typical project seeing an equity position of about 20%-30%.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Why Teardown Properties Are So Valuable on Long Beach Island
Unlike many inland markets, Long Beach Island has a finite supply of buildable land. As a result, location often outweighs the condition of the existing structure.
Teardown properties are attractive because they offer:
Prime locations near the beach or bay
Established neighborhoods with limited turnover
Lots that meet current zoning and setback requirements
The opportunity to maximize allowable square footage
Long-term value driven by scarcity
In many cases, buyers are not purchasing a home—they are purchasing the right to build in a highly desirable coastal location, which should come in well under market value.
Common Reasons Homes Become Teardown Candidates on LBI
Teardown opportunities on Long Beach Island arise for a variety of reasons, including:
Homes built decades ago that no longer meet modern lifestyle expectations
Properties with outdated layouts or low ceiling heights
Structures impacted by flooding, storms, or frozen pipe failures
Homes built below the current flood elevation standards
Deferred maintenance that makes renovation impractical
For buyers focused on new construction, these properties offer a clean slate rather than a compromise.
The Appeal of New Construction on Long Beach Island
Newly built homes are increasingly in demand across the LBI real estate market, particularly among second-home buyers and retirees seeking low-maintenance coastal living.
New construction offers clear advantages:
Elevated design that meets current flood codes
Improved insurance efficiency
Energy-efficient systems and materials
Modern floor plans and outdoor living spaces
Reduced long-term maintenance
Potential for ocean and bay views that add financial value and enhance the home's use and enjoyment.
As buyer expectations shift, newly built homes continue to command strong interest and long-term value.
Who Buys LBI Teardown Properties?
Teardown and new construction opportunities appeal to a wide range of buyers, including:
End-users building a custom coastal home
Builders and developers
Investors focused on resale or rental performance
Buyers seeking newer homes without bidding wars
Because of this broad appeal, well-located teardown properties often attract significant attention—even when the existing structure has little or no functional value.
Zoning, Permits, and Planning Considerations on Long Beach Island
Building new on Long Beach Island requires a clear understanding of local zoning regulations and building requirements.
Key considerations include:
Maximum building height and square footage
Setbacks and lot coverage
Flood zone and elevation requirements
Demolition permits and timelines
Variance potential, if applicable
Working with experienced professionals familiar with LBI construction helps buyers evaluate feasibility before committing to a purchase.
Pricing Teardown Properties in the LBI Real Estate Market
For sellers, pricing a teardown property correctly is critical. The value is typically based on:
Comparable land and teardown sales
Location and neighborhood desirability
Lot size, shape, and zoning
Rebuild potential
Homes marketed as land value or redevelopment opportunities tend to attract serious, qualified buyers who understand the property's true potential.
Long-Term Value of Building New in the LBI Real Estate Market
New construction continues to align with long-term trends in the Long Beach Island real estate market. Elevated, code-compliant homes are better positioned to handle coastal conditions while offering modern comfort and efficiency.
For buyers, building new provides control, customization, and confidence. For sellers, teardown properties remain valuable assets because land scarcity continues to support pricing across the island.
LBI Real Estate New Construction Teardown Properties
Whether you are buying or selling a teardown property, professional guidance is essential. Understanding land value, zoning, construction feasibility, and market demand ensures informed decisions and successful outcomes. The Long Beach Island real estate market rewards buyers and sellers who recognize that, in many cases, the true value lies not in the house—but in the land beneath it.
If you're looking to buy, sell, or invest in the LBI real estate market, I bring decades of local experience and market knowledge to every transaction. I'm Nathan Colmer, a Long Beach Island real estate agent with more than 20 years of experience helping clients successfully navigate the island's unique real estate landscape, with a particular focus on second homes and investment properties.
In addition to representing buyers and sellers, I actively invest in LBI real estate, allowing me to offer practical, firsthand insight into market trends, rental potential, and long-term value. Whether you're searching for a vacation home, evaluating an investment opportunity, or preparing to sell, I provide personalized strategies and trusted guidance to help you achieve your goals.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
