Why Invest in Long Beach Real Estate?
The Long Beach real estate market presents some quite attractive options to potential investors. Not only does Long Beach boast high demands for both residential and commercial units, it is about to have its multi-family home offer expanded so it can accommodate a wide range of investment opportunities.
Known for its lush green surfaces and abundance of leisure activities, Long Beach is considered to be the ideal spot for weekend getaways and family vacations by many domestic visitors. Thanks to a growing economy, based on hospitality, transportation, and retail sectors, the city boasts one of the fastest-growing household incomes in the US.
All this means that Long Beach real estate investors can benefit from high rents and high demand for rental properties as young professionals flock to the California city for job opportunities and to be close to the beach.
Investment Considerations for Long Beach Real Estate
There are a number of factors to consider, including:
- Strong job market – Thanks to its accessibility and warm climate, the city is a desirable location for both company headquarters and high-profile events. During 2018, the Grand Prix alone has brought the city a profit of $32 Million. As a result, there is a stable influx of renters and those interested in buying commercial properties.
- Rising demand for long-term accommodation – All the people brought to the city by its thriving economy are in need of accommodation. The demand is currently higher than the supply, especially when it comes to single-family homes. This gives owners of rental properties a distinct advantage when it comes to pricing.
- All-time low in vacancy rates – During 2016 and 2017, vacancy rates, in general, fell from 18.8% to only 14.8%. Industrial properties are in high demand, which has brought their occupancy rate to a whopping 99%. However, it seems that there will be a lot of development in the multi-family sector. According to CBRE, Long Beach has received a significant amount of private funding for that purpose. It remains to be seen how this will affect housing availability and prices.
- Popularity as a vacationing destination – Great weather, beautiful nature and plenty of leisure activities, make Long Beach the ideal destination for both solo and family vacations. With projects such as 2nd and PCH underway, the purpose of which is to make the city more aesthetically pleasing. For a real estate investor, this means a stable, if not rising demand for short-term rental units.
What are the Best Neighborhoods to Invest in Long Beach
With private development projects underway, it seems that the multi-family housing market in Long Beach is about to experience a boom. This will affect both the availability and prices of properties in the city, but it might just provide the perfect opportunity for real estate investment.
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Long Beach, CA; and across the United States and calculate home values RENTestimate for every property in Long Beach, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.