Oceanside Homes in the Long Beach Island NJ Real Estate Market

Oceanside homes are very popular in the LBI real estate market as they offer a less expensive price point than homes on the ocean block and oceanfront yet still provide easy beach access and strong rental demand. Oceanside homes are located east of Long Beach Blvd. and offer the advantage of not crossing the main road to access the beach. Most Oceanside homes are located in the A flood zone, which is manageable regarding flood insurance and generally at a lower risk of flooding than a home on the bayside.

Oceanside homes are a safe "middle ground" in the LBI real estate market and have broad appeal to many buyers at different price points. Oceanside homes are almost always in high demand. The accessibility to the beach and lower price point (compared to oceanblock or oceanfront homes) is very attractive to both buyers and renters. By contrast, bayside homes will cost less but usually take longer to sell than their oceanside counterparts. Likewise, the higher price point of an oceanfront or an oceanblock home may exclude some buyers from that market. Above all else, location drives value on Long Beach Island and determines liquidity and demand in the LBI real estate market. In short, home buyers in the LBI real estate market can expect a home on the oceanside to be a safer investment that benefits from high demand and strong market appreciation. 

Flood Insurance Rates, Hurricanes and Oceanside Homes

Flood insurance rates and the risk of flooding are important factors for buyers in the LBI real estate market. To this end, the oceanside offers a relatively safe location for most homes on Long Beach Island. There are a few facts about flooding that any buyer should be aware of when looking to purchase an oceanside home in the LBI real estate market. They are:

• Flooding is a part of life living at the beach and, to some extent, has to be expected
• Bayside areas are at a greater risk of flooding than the Oceanside areas
• Steps have been taken to create a more storm-ready Long Beach Island

Flooding is inevitable when owning a home on Long Beach Island or any other shore town. By their very meaning, barrier islands imply that they are the first line of defense against storms. That said, Long Beach Island is unique because it tends to be at a higher elevation than many other shore areas. The higher elevation on Long Beach Island is advantageous in defending against storms and hurricanes. While lower than oceanblock or oceanfront homes, oceanside homes on Long Beach Island enjoy a natural advantage thanks to their still high elevation. Most of the flooding that occurs on Long Beach Island will be limited to streets in big storms. It is very uncommon for a home to sustain water damage on Long Beach Island.

Bayside areas are at a greater risk of flooding than their oceanside or ocean-block counterparts. Contrary to popular opinion, flooding occurs on the Bayside areas first. When a storm increases water volume, also known as storm surge, water will fill the back bays and encroach on land, moving from lower to higher areas. Oceanside areas, which are at a higher elevation, will be safer in future storms. That said, the oceanside on LBI is not immune to storm flooding, and many homes on the oceanside sustained damage in Hurricane Sandy. As a general rule of thumb for the oceanside, the closer a home is to Long Beach Island, the greater the chance of flooding will be.

Most oceanside homes on Long Beach Island are rated in the "A" flood zone. This is a relatively safe designation by comparison; therefore, insurance rates tend to be manageable. Many areas on the oceanside have ground elevations high enough to legally support three stories of living space, which is a testimony to the high elevation. Therefore, many homes on the oceanside will be above base flood elevation even if they are not raised! Overall, oceanside homes in the LBI real estate market offer a safer area thanks to their naturally higher elevation than a home on the bayside. 

LBI Rental Investment Properties

Oceanside homes are some of the best-performing options when looking for a rental investment in the LBI real estate market. When looking to buy a rental investment in the LBI real estate market, it is essential to understand the market and ensure the rental property is worthwhile and profitable. There are four ways to help accomplish this goal. They are:

• Purchase a home in an attractive location with broad appeal to the rental market on Long Beach Island
• Keep the property's appearance top-notch and well-maintained
• Budget for repairs and maintenance throughout the year
• Price and advertise the home correctly

When looking to buy a rental investment, location is critical. While all locations on Long Beach Island will see interest in the rental market, certain areas tend to outperform others. Oceanfront, ocean block and Oceanside properties typically rent more quickly than their bayside or bayfront counterparts. Homes in Beach Haven or near local attractions will also see increased activity. A house on the oceanside or oceanblock in or near Beach Haven will be a top-rated rental.

Oceanside homes offer some unique advantages compared to other locations on Long Beach Island. Generally speaking, the lower entry price and a strong weekly rental will make for a better return on the investment. A single-family home or duplex on the oceanside will cost less than a home closer to the beach (ocean block) or right on the beach (oceanfront). This price difference is dramatic, sometimes 20% or more, between an oceanside and an oceanblock home. Oceanside homes will rent for less than an oceanblock home, but the difference in rental rates is less significant than the difference in the purchase price. Therefore, a lower upfront cost will gross a similar annual rent roll, making for a much better investment. Of course, every property and situation is different and must be evaluated independently. There are exceptions where an oceanblock home can make much more sense depending on the seller's motivation, the purchase price, and the property itself. Long Beach Island has distinct rental trends throughout the year, like many seasonal areas. Long Beach Island experiences substantial activity during the busy summer months of late June through early September, flanked by the spring and fall shoulder seasons. Winter sees little to no interest in the rental market on Long Beach Island. There are many details and nuances to a rental investment in the LBI real estate market, but it is essential to know that a summer rental on LBI could be one of the best investments you can make under the right conditions. I own several and have helped many clients balance their financial picture with a profitable summer rental.