HOSPITALITY AND TOURISM
The Jersey Shore is HOT
Shore property values , like the sea level , continue to rise and there is no end in sight .
By Tom Worley Chief Operating Officer , Clear Tunnels Publishing Solutions
The only thing hotter than the nightlife at the Jersey Shore is the real estate market . The outmigration from major cities due to COVID‐19 that fostered a surge in residential real estate around the country isn ’ t the only factor causing the price spike in our beachfront communities . “ COVID was a catalyst , but supply and demand is the root cause of the real estate spike at the Jersey Shore ,” said Matt Schlosser , Vice President & Broker Associate at Schlosser Real Estate in Lavallette , a fixture at the beach for more than 90 years .
Residents , many with recently rebuilt homes after Superstorm Sandy , were not motivated to sell . When this inventory shortage converged with increased demand caused by factors including COVID-fueled relocation , a stock market rebound and low interest rates ; the Jersey Shore towns became a seller ’ s market . “ Development in the area all but stalled in 2020 due to the increased cost of building materials , so there is not a lot of new inventory coming onto the market anytime soon ,” said Schlosser .
Schlosser Real Estate began in 1929 when Charles and Mildred Schlosser purchased the southwest corner property on President and Grand Central Avenue in Lavallette , a two-story home that housed Whitelock Realty . The Whitelock sign was replaced by a Schlosser shingle , and the agency has been in business ever since . Matt , the third-generation family owner , took the reins in 1990 after working in the business for 10 years . Since then , Schlosser has marketed hundreds of millions of dollars in local real estate and built one of the largest rental databases at the Shore .
“ COVID was a catalyst , but supply and demand is the root cause of the real estate spike at the Jersey Shore .”
The typical inventory of homes listed by the agency for sale on the strand between Mantoloking and Ortley Beach is between 60-80 houses . Today , the available homes for sale listed by Schlosser hovers around 10 units . Home sales aren ’ t the only hot real estate sector at the beach . Weekly rentals doubled their annual pre-pandemic average in 2020 , and the 2021 bookings surpassed the entire 2020 season before the end of May .
According to Schlosser , the typical home purchaser is between 45-60 , predominantly from Northern New Jersey . There has been a slight uptick of purchasers from New York City , Connecticut and Pennsylvania , which he attributes to the price spikes in the Hamptons and the Avalon-Stone Harbor area . Homes purchased are primarily second residences ; investors have shied away from the area because the rent increase hasn ’ t kept pace with the increase in purchase prices . There are , however , a number of purchasers who rent their homes for segments of the season in order to defray some of the carrying costs .
Another reason that homes at the shore are in high demand is the continued transition to a remote workforce . The work-at-home model saves employees commuting time and travel expenses and saves employers the expense of rent and retrofitting their offices for socially distanced workspaces . People can now live where they want to live instead of where their job required , and companies can now maintain a smaller commercial real estate footprint .
The high cost of flood insurance through the Federal Emergency Management Agency
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This barrier island off the New Jersey coast has some of the most sought-after properties in the state .
Photo : Getty Images / iStockphoto
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