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1) Long Beach's "vacancy rate" is just 5.5%, showing it's a bustling and competitive market
Signal strength: strong
The vacancy rate in Long Beach is 5.5%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, meaning there is strong demand for rental properties.
When demand is high, it often leads to increased rental prices, which can provide a good return on investment for property owners. In Long Beach, well-maintained, single-family homes in areas like Belmont Shore are particularly sought after.
These types of properties are easily rented due to their desirable location and the amenities they offer. Investing in such properties can be a smart move, as the low vacancy rate suggests a stable rental market.
If the vacancy rate were to rise above 10%, it might indicate an oversupply of rental properties, which could make it a less attractive investment.
Sources: NeighborhoodScout, DataUSA, USCensus
2) Long Beach's "homeownership" rate is just 39.5%, indicating significant potential for growth
Signal strength: moderate
The fact that homeownership in Long Beach is currently at only 39.5% indicates a significant opportunity for growth in the real estate market.
This low percentage suggests that there is ample room for development and potential for property values to increase as more people transition from renting to owning. In Long Beach, renters often include younger professionals and students who are drawn to the area for its vibrant lifestyle and job opportunities, while homeowners tend to be older individuals or families who have established careers and are looking for stability.
As the local economy continues to grow, these renters may eventually seek to purchase homes, driving demand and potentially increasing property values. Investing in real estate now could position you to benefit from this anticipated shift in the market.
If homeownership were to rise significantly above 60%, it might suggest that the market is becoming saturated, potentially reducing the opportunity for investment growth.
Source: NeighborhoodScout
3) Long Beach has a good "livability score" of 69
Signal strength: moderate
The livability score of 69 in Long Beach is considered good because it reflects a balance of amenities, cost of living, and quality of life.
One reason for this score is the proximity to beautiful beaches, which not only enhances the lifestyle but also attracts tourists and potential renters. Additionally, Long Beach boasts a vibrant arts and cultural scene, with numerous galleries, theaters, and music venues that enrich the community and increase property desirability.
Moreover, the city has a strong local economy, supported by the Port of Long Beach, which provides jobs and economic stability, making it an attractive place for long-term investment. These factors contribute to the assumption that buying property in Long Beach is a good investment.
However, if the livability score were to drop below 50, it might indicate underlying issues that could affect property values negatively.
Source: AreaVibes
4) By 2026, Long Beach's property values are expected to increase, driven by projects such as the "Colorado Lagoon-Marina Stadium Connection" and "Alexan East End."
Signal strength: moderate
Investing in real estate in Long Beach, California, could be a promising opportunity due to several upcoming infrastructure and development projects. These projects are expected to boost the area's appeal and potentially increase property values.
The Colorado Lagoon-Marina Stadium Connection, set for completion in early 2025, aims to restore the Colorado Lagoon by connecting it to Marine Stadium through a new tidal channel. This project is likely to boost the aesthetic and recreational appeal of the area, which could lead to an increase in nearby property values.
Another significant development is the Alexan East End, with initial occupancies expected in May 2026. Located on a 5.6-acre surface parking lot in Downtown Long Beach, this large residential project could increase housing supply and improve the urban landscape. The addition of new amenities and improved infrastructure may boost real estate values in the downtown area.
The El Dorado Regional Stormwater Capture Project, expected to be completed by late 2026, is situated near the Long Beach Water Reclamation Plant. This project will protect local waterways, boost the city's water supply, and create a usable recreational area, potentially enhancing the appeal and value of nearby properties.
Sources: Long Beachize, Long Beach Post
5) Long Beach's population is expected to increase by 1.3% by 2025
Signal strength: moderate
The projected population growth of 1.3% in Long Beach by 2025 suggests a potential increase in demand for housing, making it a promising opportunity for property investment.
Historically, Long Beach has experienced a decline in population, with a decrease of 12,547 people from 2000 to 2023. However, the forecasted growth indicates a shift in this trend, which could lead to a revitalization of the local real estate market. As more people move to the area, the demand for housing is likely to rise, potentially driving up property values.
Investing in property during a period of projected population growth can be advantageous, as it may result in increased property appreciation over time. This growth can also attract new businesses and amenities, further enhancing the appeal of the area and contributing to a vibrant community.
While the recent trends show a population decline, the forecasted growth by 2025 offers a positive outlook for future development and economic opportunities in Long Beach. This potential turnaround could make buying property there a strategic move for investors looking to capitalize on the anticipated demand and growth in the region.
Sources: Neilsberg, Aterio, Long Beach Post, Long Beach Post, Data USA
So, is it worth buying property in Long Beach? Absolutely!
Long Beach presents a compelling case for property investment, thanks to its vibrant and competitive real estate market.
With a low vacancy rate of 5.5%, the demand for rental properties is strong, often leading to increased rental prices and a stable return on investment. The city's homeownership rate of just 39.5% indicates significant potential for growth, as more renters may transition to homeowners, driving property values up.
Additionally, Long Beach boasts a good livability score of 69, reflecting a balance of amenities and quality of life, further enhancing its appeal. Upcoming infrastructure projects, like the Colorado Lagoon-Marina Stadium Connection and Alexan East End, are expected to boost property values by 2026. Moreover, the projected population increase of 1.3% by 2025 suggests a revitalization of the local real estate market, making it a strategic time to invest.