What will New Construction on LBI mean for Summer Rentals?

Most of the construction happening on Long Beach Island is to rebuild older homes damaged during Superstorm Sandy almost two years ago, not necessarily for new structures, according to Realtor Matt Kulinski, with G. Anderson Agency on L.B.I..

Work is visible along the Bay side of Long Beach Boulevard, in a lower-elevated area that received most of the damage during the hurricane. New homes going up on pilings as high as nine feet where ranches and capes once stood, giving the appearance of much larger structures.

"The square footage of the houses aren't necessarily that much bigger, they just look bigger," said Kulinski. He added L.B.I still has height and lot restrictions.

People are flipping the new homes, keeping them in the family or renting them. Kulinski said while rentals for newer homes might increase there will always be a middle-class market.

"The rates, they may go up slightly for a brand new house, but we still have a lot of inventory at the entry level, if you will," said Kulinski. He pointed out a majority of the houses on the Ocean side did not get damaged, including duplexes and capes. "So, therefore nothing has changed with those houses. The rates are going to be the same."

There has been a progression of bigger homes being built in shore communities, including L.B.I., according to Kulinski. But, he noted, "That's only a percentage of the houses. There's still a fair amount of affordable, summertime rental houses for a weekly rental on L.B.I."