Long Beach Real Estate Today Feels Like Santa Monica and Hermosa Beach Before They Were Expensive

Long Beach Real Estate Today Feels Like Santa Monica and Hermosa Beach Before They Were Expensive

Long Beach real estate is increasingly being compared to Santa Monica and Hermosa Beach during the years when those markets were still considered affordable coastal alternatives.

That comparison isn’t nostalgia it’s data driven.

When you examine pricing history, rent growth, supply constraints, and demographic shifts, Long Beach shows many of the same real estate characteristics Santa Monica and Hermosa Beach displayed before they fully repriced.

Why Long Beach Real Estate Is Drawing Coastal Comparisons

Historically, Santa Monica and Hermosa Beach were:

• Livable coastal cities, not luxury enclaves
• Undervalued relative to their beach access and lifestyle
• Attractive to buyers priced out of neighboring markets

Over time, rising demand met limited supply—and prices reset permanently.

Long Beach now occupies that same position within Southern California coastal real estate.

Long Beach vs Santa Monica vs Hermosa Beach: Price History

Median Home Price Comparison

Long Beach remains the only major LA County coastal city where median home prices have not fully aligned with coastal peers. *2025 figures reflect typical home values (ZHVI)

Rent Growth Supports the Long Beach Real Estate Thesis

Average Monthly Rent (2025)

• Long Beach: ~$2,264
• Santa Monica: ~$3,562
• Hermosa Beach: ~$3,641

This rent to price gap mirrors early Santa Monica and Hermosa Beach conditions, when rents increased faster than purchase prices, eventually leading to appreciation pressure.

For investors, this matters because:

• Strong rental demand supports long term values
• Coastal supply remains structurally limited
• Yield compression historically follows this pattern

Coastal Supply Constraints: A Shared Reality

Santa Monica and Hermosa Beach became expensive largely because:

• They are geographically constrained
• Coastal zoning restricts new development
• Inventory turnover is limited

Long Beach shares these same constraints within its coastal neighborhoods, including:

• Belmont Shore
• Naples
• Alamitos Beach
• Bluff Park

Despite being a larger city, the desirable coastal submarkets in Long Beach function like independent beach towns.

Migration Patterns Mirror Early Beach City Growth

Before price surges, Santa Monica and Hermosa Beach attracted:

• Professionals priced out of prime Westside markets
• Buyers prioritizing lifestyle and walkability
• Long term investors acquiring property ahead of recognition

Today, Long Beach real estate is seeing:

• Inbound buyers from West LA, South Bay, and Orange County
• Investors targeting duplexes, fourplexes, and ADU properties
• Owner users seeking coastal living at a lower entry point

This demographic shift historically precedes long term repricing.

Why Long Beach Is Earlier in the Same Cycle

The comparison isn’t that Long Beach will become Santa Monica.

It’s that Long Beach today resembles Santa Monica and Hermosa Beach before scarcity, capital, and demand fully converged.

The same forces are present:

• Coastal access
• Lifestyle demand
• Limited supply
• Gradual reinvestment

The difference is timing.

What This Means for Buyers, Sellers, and Investors

Buyers:
Access coastal Southern California real estate before pricing fully adjusts.

Investors:
Acquire rental property in a coastal market where rents support long term appreciation.

Sellers:
Benefit from increasing demand driven by migration and limited inventory.

Frequently Asked Questions 

Is Long Beach a good real estate investment?

Long Beach offers a rare combination of coastal location, relative affordability, and rental demand compared to other LA County beach cities.

Why is Long Beach cheaper than Santa Monica?

Santa Monica repriced earlier due to earlier capital inflows and tighter supply. Long Beach is experiencing those same forces later in the cycle.

Which Long Beach neighborhoods compare most to beach cities?

Belmont Shore, Naples, Alamitos Beach, and Bluff Park show the strongest coastal similarities.

About the Author

Johnathon Cardwell is a Southern California real estate broker specializing in Long Beach and coastal markets. He works with buyers, sellers, and investors focused on long term value, data driven strategy, and coastal real estate fundamentals.

_{Disclaimer:
This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Real estate market conditions, pricing, and trends are subject to change and may vary by neighborhood, property type, and individual circumstances. Past performance and historical comparisons are not guarantees of future results. Readers should conduct their own due diligence and consult with qualified real estate, legal, and financial professionals before making any real estate decisions.}