Top LocationsLong Beach Real Estate 2020: Time to Invest? by Hamza Abdul-Samad December 26, 2019December 12, 2019 by Hamza Abdul-Samad December 26, 2019December 12, 2019The California real estate market contains many of the most profitable investment locations in the US housing market. One of the more underrated markets in the state is the Long Beach real estate market. However, as a new decade approaches, investors are asking “Is now a good time to invest in Long Beach real estate?” The answer is yes! If you want to take advantage of what the Long Beach housing market will offer in 2020, start looking for an investment property now. We’ll explain why this is a smart move by taking a look at the Long Beach real estate trends of 2020.Related: 5 California Housing Market Predictions for 2020 Long Beach Real Estate Trends for 2020There are four promising market trends that highlight why Long Beach real estate investing is a good choice for 2020:Both the Traditional and Airbnb Rental Strategy Will Be LucrativeThe bread and butter of residential real estate profitability is rental income. Fortunately for Long Beach real estate investors, the market is projected to be profitable for both traditional and Airbnb rentals in 2020. This is evident from the current rental income data for the average Long Beach investment property. According to Mashvisor’s investment property calculator:Average Traditional Rental Income: $2,487Average Airbnb rental income: $3,623These income figures are above average relative to the California real estate market.In addition to the rental income, Mashvisor’s data shows that you can find traditional and Airbnb investment properties with good cap rates as well. Click here to take a look at these properties for sale.If you’re interested in learning more about how Mashvisor can help you achieve your Long Beach real estate investing goals, click here!Properties in the Long Beach Housing Market Are Projected to Greatly AppreciateLong Beach houses for sale will also benefit from real estate appreciation in 2020. The Long Beach housing market has had a great history with property appreciation post-housing crisis. According to NeighborhoodScout, Long Beach real estate appreciated by over 70% in the last 10 years. This places Long Beach in a unique position as these figures land the real estate market in the top 10% for national appreciation. The market’s trend of high appreciation rates is not expected to end any time soon. According to Zillow, Long Beach real estate appreciated by 2.5% this year. For 2020, Zillow predicts the average Long Beach real estate investment will appreciate by 3.1%.Long Beach House Prices Will Be Relatively AffordableThe California real estate market is known for its expensive property prices. This is particularly true in the state’s largest cities, which include the Los Angeles real estate market and the San Francisco real estate market. By investing in Long Beach real estate, however, an investor won’t have to pay such astronomical price tags. According to Mashvisor, the city’s median property price is $783,409. While this is significantly higher than the national median, it is affordable relative to California’s major cities. Los Angeles, Oakland, San Diego, San Jose, Santa Barbara, and San Francisco all have median prices that are higher than Long Beach house prices.Even though Long Beach investment properties will experience high appreciation and are located in a warm seller’s market, they will remain relatively affordable in 2020.Related: Long Beach Real Estate: A More Affordable Option in California Real EstateAirbnb Will Be Legal in the Long Beach Real Estate Market 2020What if you’re planning to invest in Long Beach real estate for Airbnb in 2020? Luckily, Airbnb short-term rentals are legal in Long Beach. While Long Beach Airbnb laws were nonexistent in the past, an ordinance by the City Council legalized short-term rental activity. The ordinance, passed in December 2018, in its entirety can be found here. We’ll focus on the most notable Long Beach Airbnb laws in this blog.For starters, Airbnb Long Beach investors are permitted to use a non-primary residence or non-owner occupied rental for Airbnb. Airbnb regulations also require hosts to register their rentals with the city. A business license is required as part of the registration. Hosts must also impose quiet hours from 10 pm to 7 am on outdoor pools and hot tubs in the rental properties. Finally, Airbnb hosts must pay a 12% Long Beach Transient Occupancy Tax for their short-term rentals.Best Neighborhoods in Long Beach for Traditional RentalsIf you want to buy a traditional rental property, where should you invest in Long Beach real estate in 2020? According to Mashvisor, these are the best neighborhoods:Saint Mary’s Median Property Price: $883,254Price per Square Foot: $387Price-to-Rent Ratio: 31Traditional Rental Income: $2,354Traditional Cap Rate / Cash on Cash Return: 1.8%Bixby KnollsMedian Property Price: $927,414Price per Square Foot: $425Price-to-Rent Ratio: 21Traditional Rental Income: $3,645Traditional Cap Rate / Cash on Cash Return: 1.5%Los Cerritos AreaMedian Property Price: $707,865Price per Square Foot: $387Price-to-Rent Ratio: 21Traditional Rental Income: $2,782Traditional Cap Rate / Cash on Cash Return: 1.4%University Park EstatesMedian Property Price: $456,758Price per Square Foot: $334Price-to-Rent Ratio: 12Traditional Rental Income: $3,260Traditional Cap Rate / Cash on Cash Return: 1.4%Best Neighborhoods in Long Beach for Airbnb RentalsAs mentioned in the trends above, Airbnb Long Beach rental properties will be profitable as well in 2020. To get the most out of Airbnb short-term rental properties, we recommend investing in the following Long Beach neighborhoods:North Long BeachMedian Property Price: $521,352Price per Square Foot: $411Price-to-Rent Ratio: 22Airbnb Rental Income: $4,058Airbnb Cap Rate / Cash on Cash Return: 4.3%Airbnb Occupancy Rate: 77%Saint Mary’s Median Property Price: $883,254Price per Square Foot: $387Price-to-Rent Ratio: 31Airbnb Rental Income: $3,799 Airbnb Cap Rate / Cash on Cash Return: 3.5%Airbnb Occupancy Rate: 72%Los Cerritos AreaMedian Property Price: $707,865 Price per Square Foot: $387Price-to-Rent Ratio: 21Airbnb Rental Income: $4,463 Airbnb Cap Rate / Cash on Cash Return: 3.2%Airbnb Occupancy Rate: 63%Lakewood VillageMedian Property Price: $897,369 Price per Square Foot: $443 Price-to-Rent Ratio: 26Airbnb Rental Income: $5,037 Airbnb Cap Rate / Cash on Cash Return: 3.2%Airbnb Occupancy Rate: 75%Washington SchoolMedian Property Price: $686,322 Price per Square Foot: $386 Price-to-Rent Ratio: 34Airbnb Rental Income: $3,113 Airbnb Cap Rate / Cash on Cash Return: 3.1%Airbnb Occupancy Rate: 64%Bixby AreaMedian Property Price: $519,271 Price per Square Foot: $451 Price-to-Rent Ratio: 22Airbnb Rental Income: $3,461 Airbnb Cap Rate / Cash on Cash Return: 2.9%Airbnb Occupancy Rate: 67%Related: Where to Find Airbnb Data in 2020 for Real Estate InvestingTo sum up, the Long Beach real estate market will be a top location in California in 2020. To start searching for Long Beach houses for sale, click here to start your 14-day FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCaliforniaLong Beach CANeighborhoodTraditional 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Why Investors Need Airbnb Statistics to Succeed (& Where to Find Them!) Next Post 7 Real Estate Agent New Year’s Resolutions for 2020 Related Posts Phoenix Real Estate 2017: One of the Top Choices in Real Estate Investing Are These US Cities a Buyer’s Market or Seller’s Market? 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