The Southern California real estate market has been very successful in 2018. Many cities such as Los Angeles, Santa Barbara, and San Diego have headlined the region’s success with high rental income for both Airbnb and traditional investment properties. To further understand why the California real estate market is a powerhouse, read this: “California is Emerging as the Best Place to Invest in Real Estate in the Coming Years.” While the previously mentioned cities are excellent for making money in real estate, they are also very expensive, typical of a housing market in California. The city focused on in this blog, Long Beach, relatively avoids this issue while also capitalizing on California’s profitability. So, without further ado, here’s the status of the Long Beach real estate market 2018.
Long Beach Real Estate Market 2018
The Long Beach real estate market 2018 is one of the most versatile markets in Southern California real estate. Whether you prefer traditional or Airbnb investment properties, the Long Beach housing market has it all. Let’s look at the data provided by Mashvisor’s investment property calculator to dive deeper into the profitability of the Long Beach real estate market 2018.
Side Note: To learn more about Mashvisor’s investment property calculator, read this: “Mashvisor: The Best Rental Property Calculator You Can Ask For”!
Median Property Price: $827,550
Traditional
Rental Income: $3,052
Cash on Cash Return / Cap Rate: 1.12%
Airbnb
Rental Income: $2,360
Cash on Cash Return / Cap Rate: 0.96%
It’s clear that regardless of the rental strategy, Long Beach real estate investors are in for a great sum of profit. Long Beach investment properties generate high Airbnb and traditional rental income. Return on investment is also high, relative to the Southern California real estate market. Property prices are also very inexpensive compared to other markets in the region, especially compared to Los Angeles, which is very close to Long Beach.
While the Long Beach real estate market 2018, as a whole, is well-suited for both traditional and Airbnb investment properties, some neighborhoods within the city significantly favor one strategy over the other. We will now go over the best neighborhoods for each strategy.
Best Neighborhoods for Traditional Investing:
The average Long Beach investment property is most profitable as a traditional income property. What makes traditional real estate investing the dominant strategy in Long Beach is the fact that the city has a strong economy, largely due to its shipping port. As a matter of fact, the Port of Long Beach is the second largest busiest container port in the country. It is also among the largest shipping ports in the world. Such economical value attracts long-term workers, which also attracts long-term traditional real estate opportunities. This is especially the case in three neighborhoods in the Long Beach real estate market 2018: Hellman, Saint Mary’s, and Rose Park.
Hellman
Median Property Price: $883,707
Traditional Rental Income: $4,190
Traditional Cash on Cash Return / Cap Rate: 1.59%
Saint Mary’s
Median Property Price: $896,563
Traditional Rental Income: $4,074
Traditional Cash on Cash Return / Cap Rate: 1.25%
Rose Park
Median Property Price: $1,014,550
Traditional Rental Income: $4,027
Traditional Cash on Cash Return / Cap Rate: 1.32%
Best Neighborhoods for Airbnb Investing:
By virtue of being a part of Southern California, the Long Beach real estate market 2018 is a profitable location for short-term rental properties, including vacation rentals and Airbnb properties. Long Beach’s blend of art festivals, musical events, fun theaters, and beautiful museums truly lives up to the city’s nickname of “The International City.” Long Beach also impresses with its warm beaches and natural scene, providing the perfect opportunity for vacation homes and Airbnb income properties. While Airbnb investing is profitable for the city’s average, Mashvisor’s neighborhood analysis shows that Carrol Park and Belmont Heights are the best neighborhoods for Airbnb. To learn more about a neighborhood analysis, read this: “How to Do a Neighborhood Analysis in Real Estate.”
Carrol Park
Median Property Price: $592,773
Airbnb Rental Income: $2,307
Airbnb Cash on Cash Return / Cap Rate: 1.19%
Belmont Heights
Median Property Price: $1,140,585
Airbnb Rental Income: $3,227
Airbnb Cash on Cash Return / Cap Rate: 1.08%
Airbnb Occupancy Rate: 62%
Best Neighborhoods for Both Traditional and Airbnb Investing:
Buying an investment property for traditional or Airbnb investing is very possible in the diverse Long Beach real estate market 2018. While most neighborhoods clearly favor a rental strategy, some, such as Alamitos Beach and East Village, are lucrative for both strategies.
Alamitos Beach
Median Property Price: $859,754
Traditional
Rental Income: $3,273
Cash on Cash Return / Cap Rate: 0.75%
Airbnb
Rental Income: $1,961
Cash on Cash Return / Cap Rate: 0.5%
Occupancy Rate: 60%
East Village
Median Property Price: $589,448
Traditional
Rental Income: $2,256
Cash on Cash Return / Cap Rate: 0.03%
Airbnb
Rental Income: $2,026
Cash on Cash Return / Cap Rate: 0.26%
Occupancy Rate: 58%
Highlights of Long Beach Real Estate Market 2018
The Long Beach real estate market 2018 has been one of the most impressive markets in California and in the US as a whole. There are three main highlights of buying an investment property in this housing market:
- Inexpensive property prices for a California real estate market
Long Beach investment properties are very cheap compared to others in the Southern California market. Property prices in its best neighborhoods range from about $500,000 to over $1 million. Nonetheless, most properties stick to the average of about $830,000.
- Versatile real estate market
The Long Beach real estate market 2018 is compatible with many forms of real estate. A Long Beach real estate investor can look for a traditional, Airbnb, or vacation investment property and generate sums of rental income from any of the three.
- Traditional real estate investing powerhouse
Despite what was previously mentioned, Long Beach investment properties are most profitable as traditional properties. This is a huge advantage for Long Beach real estate investors interested in long-term investments.
Interested in buying an investment property in the Long Beach real estate market 2018? Click here to begin your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount afterward!