Nestled on the Washington coast between Willapa Bay and the Pacific Ocean, Long Beach, WA beckons with its charming harbor town atmosphere, pristine beaches, and abundant outdoor activities. And beyond its surface appeal lies a burgeoning real estate market that holds promising potential for savvy investors. Let’s take a closer look and find out why the answer to the question “is it worth investing in Long Beach, WA real estate?” is a resounding yes.
GET TO KNOW LONG BEACH AND ITS REAL ESTATE MARKET
Long Beach is a small, growing city of almost 1,700 residents (as of the 2020 Census) that’s located in southwestern Pacific County. A vibrant community, its economy which was historically reliant on fishing and lumber, has diversified to include tourism, healthcare, and light manufacturing. This recent economic development has fueled population growth, creating a steady demand for housing.
The real estate market in Long Beach mirrors this positive trajectory. Although prices experienced a downward trend in 2023, the median listing price of $400,000 in the fourth quarter of 2023 remains lower than other coastal areas like Ocean Shores in WA or Astoria and Warrenton across the state line in Oregon. This relative affordability, coupled with a stable market, suggests an opportune moment for entry.
Why Invest in Long Beach, WA Real Estate?
There are several factors that make Long Beach a lucrative investment destination:
- Promising Growth Potential: The city’s growing economy continues to attract residents and businesses, fueling a sustained demand for housing. This demand, coupled with limited land availability, paves the way for potential property appreciation.
- Diverse Rental Market: Long Beach caters to varied residents, from retirees and families seeking coastal living to active individuals drawn to outdoor activities. This diversity translates into a robust rental market, offering investors multiple income streams through vacation rentals, long-term leases, or a combination of both.
- Relative Affordability: Median home prices in coastal areas, on average, are significantly higher than prices inland. Long Beach, at $400,000, bucks this trend, offering coastal living at a price closer to inland regions. Compared to popular Pacific Northwest coastal destinations like Oregon’s Cannon Beach ($1.2 million as of November 2023) or Washington’s Port Townsend ($737,000), Long Beach emerges as a significantly more affordable entry point.
- Natural Beauty and Recreational Appeal: Long Beach is located on a peninsula with a 28-mile beach (hence the name) and has abundant opportunities for hiking, biking, fishing, and water sports. Just within the immediate area visitors will find Cape Disappointment State Park, Leadbetter Point State Park, Long Island, and the Willapa National Wildlife Refuge. This inherent appeal attracts tourists and potential residents alike, further bolstering the demand for housing and strengthening the potential for rental income.
- Steady Market with Potential for Appreciation: Despite the downward trend in 2023, the Long Beach market remains relatively stable. The median home sold price at $405,000 and a sale-to-list price ratio of 95.36% suggests that homes are still holding value. This stability offers investors peace of mind and reduces the risk of volatile price swings.
Key Considerations When Investing in Real Estate
While the potential for success in Long Beach is evident, there are crucial factors to consider before taking the plunge:
- Location: Within Long Beach, proximity to the beach and amenities can significantly impact property value and rental income. Researching diverse areas and understanding their individual dynamics is crucial.
- Property Type: Single-family homes, vacation rentals, or multi-unit dwellings each offer distinct advantages and challenges. Analyze your investment goals and risk tolerance to determine the suitable property type.
- Renovation Needs: Consider potential renovation costs, as some properties might require additional investment to maximize rental income or resale value. Factor these costs into your budget and return on investment calculations.
- Local Regulations: Research zoning restrictions, vacation rental regulations, and potential permitting requirements before purchasing. Understanding the legal landscape will ensure smooth investment operations.
Seek Expert Guidance: A local real estate agent with comprehensive knowledge of the Long Beach market can be invaluable. They can help navigate the nuances of the market, identify suitable properties, and guide you through the purchase process.