Few real estate markets along the Eastern Seaboard operate quite like Long Beach Island. Tucked along the New Jersey Shore, this narrow barrier island has long attracted second-home buyers, retirees, and investors drawn by its beaches, waterfront access, and lifestyle appeal. But the market has been quietly moving in ways that aren’t always visible from the outside – driven by persistent inventory shortages, a dominance of cash transactions, and post-storm rebuilding that has reshaped the island’s housing stock.
Dayna Restaino, Broker/Owner of Restaino Realty, has watched those changes unfold in real time. She relocated from Staten Island to the Jersey Shore in 2015, earned her license two years later, and built her career on Long Beach Island before launching her own boutique brokerage in 2023 alongside her husband and business partner, Frank. The decision to go independent rather than affiliate with a national brand was deliberate. “LBI is filled with mom and pop, and I didn’t want to lose that feel,” she explains.
A Market Still Catching Its Breath on Inventory
The most pressing issue on Long Beach Island right now isn’t pricing or interest rates – it’s supply. The inventory crunch that took hold during the pandemic has yet to fully resolve, and its effects continue to ripple through every transaction.
Current inventory sits at less than 50% of pre-pandemic levels, according to Restaino. When she started in 2017, she could arrange tours of 15 to 20 homes for a single buyer visit. Today, that same buyer might view one property, then wait. “A lot of buyers are just watching the market,” she says. “We’re viewing one at a time because they’re just waiting for something to come on.”
That scarcity has a direct effect on deal flow. Rather than fielding 10 competing offers on a listing, Restaino is now more likely to see one or two. The frenzy has cooled, but not because demand has softened significantly – there simply isn’t enough product to generate it.
New Construction Opportunities Are Slim but Significant
With resale inventory tight, many buyers have turned to new construction. But on a barrier island with limited land and strict development constraints, the opportunity to build is narrow. When a vacant lot or a teardown-eligible property does come to market, the response is immediate.
“Opportunity to build is so slim in our market,” Restaino notes. “When a vacant lot becomes available, or a home considered a teardown hits the market, it demands so much attention because there are so many investors looking for a piece of property so they can build.”
Hurricane Sandy, which struck in 2012, paradoxically accelerated some of this rebuilding. What were once modest 1,200-square-foot cape-style homes were torn down and replaced with larger, elevated structures – often six-bedroom homes of three to four thousand square feet. That post-Sandy rebuild cycle has raised the overall quality and price point of the housing stock. Still, it has also added complexity for buyers navigating flood zone requirements, elevation certificates, and storm damage history.
Where Investors Are Focusing Their Attention
For investors looking to deploy capital in the area, Restaino points to Beach Haven West as the current opportunity zone. Located just off the island itself, it’s a waterfront community where boat docks are a standard backyard feature. The tradeoff is beach access, which requires crossing a bridge rather than walking out the front door.
“I feel like our community is drawing in more boaters and people who value the waterfront rather than the beachgoers,” she says. For buyers who prioritize waterfront living and boating over direct beach access, the value proposition remains strong.
The summer rental market adds another layer to the investment calculus. Rentals on Long Beach Island perform well seasonally, but the math has shifted. Properties that generated rental income under a previous owner at a much lower purchase price may not pencil out for a buyer paying today’s prices. “If a buyer is probably paying double or triple what that person paid for it, they’re going to need a higher rental rate,” Restaino explains.
Cash Buyers and Selective Demand
One of the more distinctive characteristics of the Long Beach Island market is the prevalence of cash transactions. Restaino confirms that a large portion of buyers pay cash, which means interest rate fluctuations that rattle other markets tend to have a muted effect here.
That said, buyer behavior has changed. The urgency and competition that defined the 2020 to 2022 period have given way to something more measured. Prices haven’t dropped, but they’ve stabilized, and buyers are taking more time to evaluate whether a property genuinely fits their needs and budget.
“Nobody needs a beach house. It’s a luxury,” Restaino observes. “That’s where the challenge comes in with the secondary home market.” Buyers want to see clear value before committing, and the pool itself skews heavily toward out-of-state and North Jersey residents rather than local primary-residence purchasers.
The Misconception Problem
Buyers and commentators who try to apply mainland market logic to Long Beach Island often arrive with unrealistic expectations. The dynamics here don’t map cleanly onto broader New Jersey or national trends.
“It is a secondary home market, and there are so many aspects that go into buying a home in a flood zone,” Restaino says. “Elevation is a big one. Sandy damage.” Understanding those layers – from insurance implications to resale considerations tied to storm history – requires market-specific knowledge that general real estate experience doesn’t always provide.
Looking Ahead
On the macro side, Restaino is watching interest rates – though not for the reasons that concern most markets. Her concern runs in the opposite direction. If rates drop significantly, she worries that a new wave of buyers could further compress an already thin inventory. “I would be afraid we’d be dealing with a lot less if rates dropped significantly,” she says.
For Restaino Realty, 2026 brings a concrete milestone: the firm is opening a second office location on Long Beach Island, adding to its existing presence in Beach Haven West.
For buyers, sellers, and investors trying to understand what’s actually happening on Long Beach Island, the clearest takeaway is this: inventory remains the defining constraint, and until supply meaningfully recovers, the market will continue to reward patience, local knowledge, and realistic expectations about what barrier-island real estate demands of its buyers.
About the Expert: Dayna Restaino is the Broker/Owner of Restaino Realty, a boutique brokerage she launched in 2023.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
