Is Long Beach A Smart Add To Your Investment Portfolio?

Thinking about adding a coastal Southern California property to your portfolio, but not sure you want Westside or South Bay prices? Long Beach often enters the conversation for exactly that reason. If you want a market with a broad renter base, varied housing stock, and a lower entry point than some nearby beach cities, this guide will help you weigh the opportunity with a clear, practical lens. Let’s dive in.

Why Long Beach gets investor interest

Long Beach stands out because it offers something many buyers want but struggle to find in coastal California: a mix of location appeal and more approachable acquisition pricing. Current Zillow data places Long Beach at an average home value of $857,861 and average rent of $2,277.

That compares with much higher average home values in nearby coastal markets. Santa Monica is about $1.71 million, Redondo Beach about $1.50 million, Torrance about $1.12 million, and Manhattan Beach about $3.29 million. The gap does not guarantee stronger returns, but it can make the purchase math easier to consider.

Long Beach also has a meaningful renter base. The Census estimates 450,469 residents and 170,927 households in July 2025, with owner-occupied housing at 41.2% of occupied units. For investors, that matters because a lower owner-occupancy share generally points to a larger pool of renters.

Long Beach demand drivers

A smart investment market usually has more than one reason people want to live there. Long Beach checks that box with a blend of coastal access, employment anchors, higher education, and visitor activity.

The city has about 7 miles of public beach and bays, which supports its long-term appeal as a coastal place to live. That lifestyle factor is only one piece of the story, though. Long Beach also has a diverse economic base that helps support housing demand across different price points and property types.

Port and airport activity

The Port of Long Beach is one of the city’s biggest economic anchors. According to the city, it handled 9.6 million TEUs in 2024 and moves around $300 billion in cargo annually, while also undergoing a 10-year capital improvement program with more than $2 billion in investment.

Long Beach Airport is another major contributor. The city says the airport supported about 4.1 million passengers in 2024 and generated an estimated $9 billion in economic impact and 42,000 jobs. For investors, large employment centers can help create steady housing demand tied to work and commuting needs.

University and tourism demand

California State University, Long Beach adds another layer of demand with a student body of more than 42,000. That can matter if you are evaluating condos, smaller homes, or other properties that may appeal to students, faculty, or staff.

Tourism and event activity also play a role. The Queen Mary, Aquarium of the Pacific, and Long Beach Convention & Entertainment Center help support visitor traffic, and Visit Long Beach says visitor spending generated $1.97 billion in economic impact in 2024. That mix helps explain why Long Beach gets attention from investors looking for more than a one-industry market.

Housing types in Long Beach

One of Long Beach’s biggest advantages is variety. Unlike some coastal markets that are dominated by one housing type, Long Beach offers a broader mix that can fit different budgets and investment strategies.

The city’s 2019 housing baseline says about 44% of units were single-family, 14% were in 2 to 4 unit properties, and 41% were in 5+ unit buildings. That means you may find opportunities in detached homes, condos, townhomes, duplexes, fourplexes, and small multifamily properties.

This matters because portfolio goals are not all the same. Some buyers want a simpler condo or townhome, while others are looking for small residential income property with more than one unit. Long Beach gives you more flexibility than many premium beach markets where the housing stock is narrower or more expensive.

Infill and ADU trends

The city is also planning for more housing variety over time. Long Beach says it is rezoning to create more complete communities and place housing types such as ADUs, duplexes, and bungalows near jobs and high-quality public transportation.

ADU activity has been especially strong. The city reports ADU permits increased from 208 in 2021 to 747 in 2024, which was a city record. The downtown plan has also produced more than 5,000 approved housing units over the last decade, pointing to ongoing infill and reinvestment.

Transit and renter appeal

Transit access is an important part of the Long Beach story, especially if you are buying with long-term rental demand in mind. Properties near strong transportation options often attract renters who value flexibility and commuting access.

Metro says the A Line runs from Pomona to Long Beach. Long Beach’s transportation pages also note that the A Line connects downtown Long Beach with Downtown Los Angeles and the Transit Mall, while downtown serves as a hub for Metro, Long Beach Transit buses, pedestrians, and neighborhood shuttles.

For renters, that connectivity can widen the practical commute area. For investors, it can support demand in transit-oriented locations where access matters as much as square footage.

How Long Beach compares to other coastal markets

If you are comparing Long Beach to Westside and South Bay holdings, the biggest difference is usually basis. Long Beach can offer coastal exposure at a lower average home value than Santa Monica, Redondo Beach, Torrance, or Manhattan Beach.

Here is a simple snapshot based on current Zillow data:

That pricing spread is why some buyers see Long Beach as a lower-basis coastal hold within a broader Southern California portfolio. It may offer more approachable gross-yield math on paper, but actual performance still depends on property taxes, insurance, financing terms, HOA dues, repairs, and ongoing maintenance.

It is also important to avoid treating Long Beach like a discount version of the Westside or South Bay. It has a different economic mix, a broader housing stock, and more neighborhood-by-neighborhood variation. In practice, that means careful underwriting matters even more.

Risks and cautions to review

No market is a one-size-fits-all investment, and Long Beach is no exception. A smart purchase starts with property-level diligence, not broad assumptions.

One key issue is intended use. Long Beach has a short-term rental enforcement framework, so you should not assume every property or area will support a vacation-rental strategy. If your numbers depend on short-term rental income, confirm current city rules before you buy.

You also need to underwrite each property based on its real costs. Insurance, taxes, maintenance, HOA fees, and financing can all change the picture quickly, especially in coastal markets. Two homes at the same price point can produce very different outcomes depending on condition, layout, use restrictions, and operating costs.

When Long Beach may make sense

Long Beach may be worth a closer look if you want a coastal Southern California asset but need a more approachable entry point than many neighboring beach cities. It can also make sense if you value a market with multiple demand drivers instead of relying on one major employer or one type of tenant.

You may also find it appealing if you want options across property types. The mix of single-family homes, condos, townhomes, and small multifamily properties creates more ways to match a purchase to your budget and goals.

In short, Long Beach’s appeal is not just lower pricing. It is the combination of a large renter base, transit connectivity, coastal identity, university demand, tourism activity, and ongoing infill capacity.

1031 exchange buyers and timing

For some investors, Long Beach comes up as a possible 1031 exchange target. The IRS says like-kind exchanges of qualifying real property held for investment or business may defer recognition of gain or loss, and that current rules apply only to real property.

The IRS also notes the standard deferred-exchange timing rules: 45 days to identify replacement property and 180 days to complete the exchange. Depreciation recapture and basis issues can still matter, so exchange buyers should coordinate early with a CPA, qualified intermediary, and financial advisor.

If you are navigating a 1031 exchange, timing and property selection tend to matter just as much as the market itself. A clear plan can help you move quickly without stretching beyond your comfort zone.

Bottom line on Long Beach investing

Long Beach can be a smart add to your investment portfolio if you are looking for a coastal, transit-connected market with a broad renter base and more moderate pricing than some nearby beach cities. It offers meaningful variety in housing stock and a demand profile supported by jobs, education, tourism, and ongoing development.

That said, the right decision always comes back to the specific property. If you are comparing Long Beach with other coastal options, a calm, numbers-first approach will help you see where the opportunity is and where the tradeoffs are.

If you are considering a purchase, a sale, or a 1031 exchange move in Long Beach or nearby coastal Los Angeles markets, Lisa Potier can help you evaluate your options with practical guidance and a steady, no-pressure approach.

FAQs

Is Long Beach a good real estate investment market?

• Long Beach can be a credible option for investors who want coastal Southern California exposure with a lower average home value than many Westside and South Bay beach cities, plus a large renter base and multiple demand drivers.

How does Long Beach compare with Santa Monica or Manhattan Beach for investors?

• Based on current Zillow data, Long Beach has a much lower average home value than Santa Monica and Manhattan Beach, which can make acquisition costs more approachable even though actual returns still depend on property-specific expenses and underwriting.

What types of investment properties are common in Long Beach?

• Long Beach offers a broad housing mix that includes single-family homes, condos, townhomes, duplexes, fourplexes, and larger multifamily buildings, giving investors more options than some coastal markets.

Does transit access matter for Long Beach rental demand?

• Yes. The A Line connection and downtown transit network can support renter demand in transit-oriented areas by improving access to Downtown Los Angeles and local transportation hubs.

Can you use a Long Beach property as a short-term rental investment?

• You should not assume that. Long Beach has a short-term rental enforcement framework, so you need to verify current city rules for the property and intended use before purchasing.

Is Long Beach relevant for a 1031 exchange purchase?

• Yes. Long Beach may be considered by some exchange buyers, but you need to follow IRS timing rules, including 45 days to identify replacement property and 180 days to complete the exchange, while coordinating with qualified tax and exchange professionals.