LBI New Construction Market Update 2026

LBI new construction at a glance: October 2026

Quick answer: As of October 17, 2026, there are 39 new construction homes for sale on Long Beach Island, with 12 more under contract. Over the past six months, 24 new builds closed at an average of $3.64 million, or about $1,172 per square foot, selling in 62 days at 98.28% of list price. The biggest story for the next 12 months is regulatory: New Jersey extended the REAL flood rule legacy window to July 20, 2027, which will shape how many new homes get built on LBI in 2027 and 2028.

I'm Matt Cappo with The Van Dyk Group, and I track every new construction listing and sale on the island. This report goes further than inventory counts. You'll find price per square foot by location, a town by town breakdown, what it costs to build here right now, and what the new state flood rules mean if you're buying, selling, or planning a teardown.

LBI new construction market snapshot

Active new construction inventory moved from 31 listings in April 2026 to 41 today, a rise of 25.81%. Here is where every new build on the island stands right now.

**What it means:** There are more new construction opportunities than spring, but well priced homes still go under contract in under 40days. There are currently several overpriced homes that have lingered since the spring market and are contributing to the increase of new construction inventory relative to the entire market.

What new construction costs on LBI by location

On LBI, location relative to the water moves price more than size or finishes. In April, oceanside and oceanblock new builds were selling for $3M to $4.5M and oceanfronts for $5.5M and up. Here's the October picture.

**Matt's take:** Bayblock new construction delivers the most house per dollar, with a potential view while there is a premium for ocean proximity on ocean side and ocean block lots.

New construction by LBI town

Long Beach Township, which stretches from Loveladies to Holgate, accounts for 42% of all new construction for sale. Barnegat Light remains the tightest market.

**Sections to watch inside Long Beach Township:** North Beach and Loveladies lead on price, while Brighton Beach, Beach Ship Bottom, and Holgate are where most mid priced spec homes are going up.

The NJ REAL flood rules: why July 20, 2027 matters for LBI new construction

New Jersey's REAL rules now set the regulated flood elevation in tidal areas at FEMA's base flood elevation plus 4 feet, but projects can still be reviewed under the old standards until July 20, 2027. For an island where nearly every new home is a teardown in a tidal flood zone, that date is the most important number in this report.

What changed

The NJDEP adopted the REAL rules on January 20, 2026. They replace the old design flood elevation in tidal areas with a Climate-Adjusted Flood Elevation (CAFE) set 4 feet above FEMA's 100-year flood elevation. (NJDEP, Roux)
The rules originally gave a 180-day legacy window, ending July 20, 2026, for applications to be reviewed under the prior standards. (Day Pitney)
In June 2026 the DEP proposed a one-year extension under Governor Sherrill, and on September 21, 2026 it adopted the extension, moving the legacy deadline to July 20, 2027. (NJDEP, T&M Associates)
The DEP is using the extra year to consider targeted amendments, so the final rules that apply after July 2027 may still change. (NJDEP news release)

What it means for LBI buyers, sellers, and builders

Expect a permitting rush before July 2027. Owners and builders who want plans reviewed under the old standard need complete applications in before the deadline. Local builders, architects, and owners in the know are already applying for permits and starting projects this fall to get ahead of the change.
Taller homes and different designs after the deadline. If a project falls under the new elevation, the first floor sits higher. That can mean more stairs, more demand for elevators, and tighter interplay with each town's height limits.
Lots with legacy approvals may carry a premium. A teardown lot with plans already in review under the old rules could be worth more than the lot next door. This is especially true for a location that can accomodate three floors of living space under the current flood standard. These homes will be harder to build post July 20, 2027 and therefore carry a premium.

Every property is different. Before buying a lot or signing with a builder, confirm with your architect, engineer, and the municipal construction office which standard applies to your project.

When building makes sense: You already own the lot, you want a specific floor plan, or want to obtain an equity position through buying a teardown and building for less than new construction is trading. This is a great way to force immediate equity.

When buying makes sense: You don't want to miss the upcoming summer, you want a builder's finished price with no overrun risk, or you don't want to manage a 12 to 18 month project from off island.

What buyers should know this fall

Fall is the best window of the year to negotiate on LBI new construction, because builders carrying finished spec homes into winter face months of holding costs before the spring rush.

Target homes past 90 days on market. 17 of today's 39 active new builds have been listed more than 90 days. That's where price reductions and builder credits are happening.
Buy a spring 2027 delivery now. Homes under construction today can often be bought with no competition. Keep in mind, most builders/investors will not sell at a discount even though they are getting the opportunity to exit early. You also may still choose some finishes.
Ask which flood standard the home was built to. Homes permitted under the legacy rules and homes built to the new REAL elevation are not the same product. Ask for the elevation certificate.
Check the builder's warranty. New Jersey requires new homes to be covered under the state's new home warranty program. Ask the builder for the registration and warranty details in writing.
Get an inspection anyway. New does not mean flawless. A phase inspection before drywall, and a final inspection before closing, catches problems while the builder is still on site.
Run the rental numbers. If you plan to rent, new construction with a pool and elevator commands the top weekly rates on the island. Reach out if you want me to run the numbers on a specific opportunity.

What sellers and builders should know

Pricing is doing more work than it did in 2024 and 2025: new builds priced within 7% of recent comps are going under contract in about 36 days, while overpriced homes are sitting 90 days or longer.

Price to the location tier, not the finish level. Buyers compare price per square foot within the same block type first. A bayblock home priced like oceanside will sit.
List before the spring wave. With more spec homes scheduled to finish in spring 2027, listing in winter puts your home in front of early buyers before competition grows.
Lead with resilience. Elevation, and permits are now selling points. Put them in the listing.
Planning a teardown? If you want your project reviewed under the legacy standards, talk to your architect now about getting a complete application in well ahead of July 20, 2027.
Thinking of selling your older home as a teardown? Builders, end users and investors are actively looking for lots in every section of the island. Each type of buyer brings something different to the table. Reach out to me to discuss pricing, marketing, and your long-term goals.

How this report was compiled

Listing and sales figures come from Bright MLS data pulled on October 17, 2026, covering homes built in 2025 and 2026 across all six LBI municipalities. Closed sales cover April 17 to October 17, 2026. Price per square foot uses living area as listed.

Sources

About the author

Matt Cappo is a real estate agent with The Van Dyk Group and lives full time in Beach Haven Park. He works with buyers, sellers, and investors across Long Beach Island, with a focus on residential sales, investment properties, and the summer rental market. Matt holds a business degree with a real estate concentration from Monmouth University and brings prior commercial real estate experience from CBRE. He works alongside senior broker Shawn Corson.

Thinking about buying, selling, or building new on LBI? Call Matt at (609) 496-1423, the office at (609) 492-1511, or email mcappo@vandykgroup.com.

Long Beach Island New Construction Market Update 2026