Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Learn about LBI real estate property locations, Long Beach Island New Jersey real estate, and the LBI area. A property location, more than anything else, drives a home's value in the Long Beach Island real estate market. There are several locations on LBI, oceanfront, oceanblock, oceanside, bayside, bay block, bayfront, and lagoon front. The town or area of Long Beach Island further influences the home's value in each specific location. Understanding how location impacts value is a critical first step in making a smart investment on Long Beach Island.
The LBI real estate market is made up of several locations each with their own unique characteristics. They are:
While factors such as the condition of the property, the lot size, and the views of the ocean or bay, will influence property value, location alone will dictate the price of a home on Long Beach Island more than anything else. The location, relative to the ocean or bay and the town or area of LBI, will influence where most buyers purchase a home. The location of a home establishes the baseline price for the LBI real estate market, and the details of the specific property will determine the final sales number.
All things being equal, oceanfront homes are the most highly sought-after. However, they are the most expensive by far. Oceanblock homes on Long Beach Island offer a more affordable option when compared to an oceanfront, and most oceanblock homes will have a nice ocean view. Oceanside homes provide the convenience of a shorter walk to the beach (plus not having to cross Long Beach Blvd) and are the least expensive of the beachside properties. Many oceanside homes will have a view of the ocean and bay, especially from a roof deck. For example, in some areas, like Brant Beach, oceanside properties can be closer to the beach than many oceanblock areas of other towns on Long Beach Island. Therefore, an oceanside home in Brant Beach may have a better view than a comparable oceanblock home in a wider part of Long Beach Island! Bayside homes will cost about 20% less than their oceanside counterparts. Resale tends to be slower on the bayside, but you will typically get "more house" for your money. Bayside homes are more prone to flooding, and some parts of LBI are more flood-prone than others. Knowing the more flood-prone areas is extremely important when buying a home in the LBI real estate market. Bayfront homes offer great views and sunsets but are far from the beach compared to an oceanside home. It is essential to check and see if a bayfront property has Riparian Rights, as these are required to build a dock. Proximity to the inlets on the North and South end of LBI can impact the value of a bayfront home for some buyers. Homes in the center of LBI, Ship Bottom, and Surf City, for example, have a longer ride to the open ocean than a home in Loveladies or Barnegat Light. Therefore, if a buyer puts a premium on ocean access for their boat, the more northern location may be deemed superior, thanks to the proximity to an inlet. Long Beach Island also offers lagoons in several areas (The Dunes, High Bar Harbor, Loveladies, South Beach Haven). These areas allow for a boat to be docked and will cost much less than a bayfront home. Some lagoon-front properties will also have a view of the bay, depending on their location, which again will heavily impact the home's value.
All properties will have positive and negative points, so it is important to understand Long Beach Island's different areas when buying your vacation home. It is equally important to understand how specific factors and locations impact your enjoyment of the home and its future appreciation potential in the LBI real estate market.
Oceanfront homes on LBI are generally the most expensive real estate in the Long Beach Island real estate market. The exclusive location and unobstructed views of the beach and sunrise make this one of the most highly sought-after locations on Long Beach Island. Buyers should anticipate higher costs of insurance (most oceanfront homes are located in the "V" flood zone) and higher maintenance costs thanks to the constant salt spray coming off the beach. Some areas of LBI will have much wider oceanfront lots than others, which can play an enormous role in the valuation of an oceanfront home. A home with more frontage will allow more rooms to have a view and provide better spacing and privacy between each home. Locations with wider lots, therefore, tend to trade much higher.
Oceanblock homes in the LBI real estate market offer easy access to the beach and generally have a good view of the ocean while costing significantly less than their oceanfront counterparts. To be considered a true Oceanblock home, no streets should cross between the house and the beach access. For this reason, some parts of LBI, like Brant Beach, lack Oceanblock homes, but their oceanside homes are still very near to the beach. The distance to the beach and the lot size are the most significant impactors of value for an oceanblock home on Long Beach Island. The closer to the beach, the better the view will usually be, and a better view can be worth hundreds of thousands of dollars in the LBI real estate market!
Oceanside homes are located east of Long Beach Blvd, but there will still be a minor street to cross between the house and the beach access. For most of LBI, the roads to cross are either Beach Ave. or Atlantic Ave., both of which are two-lane roads with a lower speed limit. There are parts of LBI with no oceanside homes, such as Surf City, Ship Bottom, North Beach, Loveladies, and parts of South Beach Haven. These areas have only oceanblock and oceanfront homes east of Long Beach Blvd. Some areas of LBI have more than one oceanside location and have two streets to cross before reaching the oceanblock. These wider oceanside areas will see significant variation in home pricing as the walk to the beach is longer for some oceanside homes, and homes closer to the beach may have a view.
Bayside homes on LBI are west of Long Beach Blvd and offer a much lower price point than their oceanside, oceanblock, and oceanfront counterparts. The walk to the beach will generally be longer than anything on the oceanside, but the bayside areas are often much quieter, with fewer people parking in the street, which can be a beneficial trade-off. It is important to note that, like the oceanside and ocean block, some parts of Long Beach Island have a bayside and a bay block. Bayblock homes will generally have a better view of the bay than a bayside home. The bayside areas of LBI are usually at a lower natural elevation and, therefore, are more prone to flooding. The cost of insurance can be higher on the bayside, but even with this, buyers will usually find a much larger and newer home on the bayside compared to the oceanside or oceanblock for the same money.
Bayblock homes share many characteristics with Oceanblock homes...they are just located west of Long Beach Blvd. A Bayblock home on LBI will have no streets to cross between the house and the bay. These homes will often have a very nice view of the bay and sunset. Since they are closer to the bay, some bay block areas are more flood-prone (largely depending on if they are natural land or if they were filled in marsh). Not every part of LBI has a bay block, but they are peppered throughout the Island and are often found in Surf City, Ship Bottom and North Beach Haven.
Bayfront homes on Long Beach Island offer unobstructed views of the bay and sunset as they are located directly on Barnegat Bay. One of the most significant factors that can impact the value of a bayfront home on Long Beach Island is the presence or absence of Riparian Rights. These rights determine if a dock can be built for a boat and if one can be built, how large it may be built. There are two kinds of Riparian Rights: grants and leases. With a grant, the owner owns the land under the water. With a lease, the land is leased from the state. As a buyer, it is paramount to understand Riparian Rights if you are considering a bayfront purchase in the LBI market. Besides Riparian rights, all bayfront buyers in the LBI real estate market should understand setbacks, CAFRA approvals, and the condition of the bulkhead, as these factors can greatly impact a home's value.
Lagoonfront homes on LBI are only located in a few areas of LBI, mainly High Bar Harbor, The Dunes, Loveladies, parts of Harvey Cedars, and Beach Haven. These homes are located on individual waterways called lagoons or canals. They offer direct access to the bay but usually lack unobstructed views of the bay. These homes will generally trade lower than a bayfront home and provide more protection from storms, making them an attractive option for boaters or those looking for life on the water. The position of a home on a lagoon can have a significant impact on value as homes closer to the mouth of a lagoon tend to trade higher thanks to the view potential and the better water movement. As in the case of bayfront homes, buyers of lagoon front homes in the LBI real estate market should be aware of any CAFRA restrictions, setbacks, and the condition of the bulkhead.
The location of a property can have a significant impact on an investment in the LBI real estate market. While there are many aspects to consider when investing in Long Beach Island, location is the most influential. Generally speaking, the closer to the beach, the better when looking to rent or to redevelop a spec project. Buyers and summer tenants generally prefer locations with shorter walks to the beach. This is not to imply that spec homes and summer rentals in the bayside areas are not capable of positive returns. Only that Oceanside, Oceanblock, and Oceanfront tend to have higher overall returns. That said, as the price point of homes and summer rentals have increased, the bayside areas of Long Beach Island are seeing more and more investment potential. These locations offer a more affordable price point and, therefore, open the field to far more buyers. The bayside is also a very quiet area with better view potential, which can be very appealing for buyers. Location is important, but when looking to buy or invest in the LBI real estate market, location needs to be considered along with the other factors that determine value on Long Beach Island.