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Long Beach, NY: Rising Home Values and Ownership Rates in a Coastal City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Long Beach, New York, is a vibrant coastal city located on Long Beach Barrier Island in Nassau County. With a population of 34,734 in 2022 and a land area of just 2.22 square miles, it boasts a high population density of 15,662 people per square mile. The city has experienced a notable shift in homeownership rates and housing prices over the past decade, with interesting trends emerging in both the rental and ownership markets.
The homeownership rate in Long Beach has shown a steady increase from 2013 to 2022. In 2013, 57% of residents owned their homes, and this figure rose to 63% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $477,712, and by 2022, it had risen to $738,434, representing a substantial 54.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Long Beach presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 1.83%, the city saw only a modest increase in homeownership during this period. However, as interest rates began to rise sharply in 2022 to 1.68%, and further in 2023 to 5.02%, Long Beach continued to see an increase in homeownership rates. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in driving homeownership trends in the city.
The rental market in Long Beach has experienced its own set of changes. The percentage of renters decreased from 43% in 2013 to 37% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $1,765, and by 2022, it had increased to $2,119, representing a 20% rise over nine years. This increase in rent prices, coupled with a decreasing renter population, suggests a tightening rental market with potentially higher-quality or more desirable rental properties commanding premium prices.
As of 2024, the average home price in Long Beach has reached $762,316, showing continued appreciation from the 2022 levels. This represents a 3.2% increase from 2023 when the average home price was $738,646. The federal interest rate in 2024 stands at 5.33%, slightly higher than the 2023 rate of 5.02%. Despite these elevated interest rates, the housing market in Long Beach appears to remain robust, with home values continuing to climb.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Long Beach could potentially reach or exceed $850,000 by 2029. Rent prices may also continue their upward trend, potentially surpassing $2,500 per month on average. However, these projections are subject to various economic factors and local market conditions.
In summary, Long Beach, New York, has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The city has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The rental market, while shrinking in terms of the percentage of renters, has seen steady increases in average rent prices. These trends paint a picture of a desirable coastal community with a strong and evolving real estate market.
