In 2026, Long Beach is positioned as one of the most active submarkets in Southern California. While the broader region is seeing a "normalization," Long Beach is specifically benefiting from a massive push in housing entitlements and a growing reputation as a more affordable, coastal alternative to Santa Monica and the South Bay.

### 1. Market Forecast: Modest Growth & Seller's Edge

While some national reports hint at a "buyer's market," Long Beach remains tightly constrained, likely keeping it in seller-friendly territory throughout 2026.

• Price Appreciation: Local forecasts project a 1% to 3% increase in home values for Long Beach. While modest, it reflects a recovery from the price dips seen in early 2025.

• Inventory Levels: Long Beach enters 2026 with roughly 3.2 months of supply. A balanced market is typically 5–6 months, meaning buyers will still face competition and occasional multiple-offer scenarios.

• The "Coastal Migration": Redfin agents report a trend of buyers moving from high-fire-risk areas (like the Malibu hills or Palisades) toward "flat coastal" neighborhoods like Long Beach, which is seen as a safer and more value-driven investment.

### 2. The 2026 Housing Surge

Long Beach has become a statewide leader in housing production. Between 2023 and the end of 2025, the city approved over 5,200 new housing units—a 147% increase over the previous three-year cycle.

• Affordable Housing Milestones: At least five major projects are slated to break ground or continue construction in 2026, including:

  • The Armory Arts Collective: 63 apartments for older adults in the historic Armory complex.

  • AMCAL Linden Apartments: 99 affordable units for families north of Downtown.

  • The 101: 51 units on PCH for those transitioning out of homelessness.

• ADU Dominance: Long Beach is a leader in Accessory Dwelling Units (granny flats). In 2026, the city expects to surpass its record of nearly 800 ADU permits per year, providing a significant "shadow inventory" for renters.

### 3. Rental Market & Laws

For landlords and renters, 2026 brings stricter regulations and more competition from new builds.

• Rent Caps (AB 1482): For properties subject to state law, the maximum rent increase for the period ending July 31, 2026, is capped at 8% (5% base + 3% regional CPI).

• "Remodel or Lose Ground": With thousands of new, modern units hitting the market, older "legacy" apartments in Long Beach are facing higher vacancy rates. Experts warn that landlords who don't modernize (flooring, kitchens, lighting) may have to lower rents to compete with the newer stock.

### 4. Neighborhood & Commercial Spotlight

• 2nd & PCH Expansion: The high-end retail hub continues to grow. A major highlight for 2026 is the opening of the famed Vietnamese restaurant Brodard, which is expected to drive significant foot traffic to the Alamitos Bay area.

• Traffic Circle/East Side: Increased density is expected around the Traffic Circle, with the Fountain Street Apartments (72 affordable units) coming online to serve lower-income families and individuals with disabilities.

### Key Takeaways for 2026

• Long Beach is Outperforming: While the broader L.A. County market is seeing flat or slightly dipping prices (-1.3%), Long Beach is entering a "rebound phase" with projected growth up to 4%.

• The Coastal "Value" Play: Long Beach maintains a lower median price than the County average (approx. $80k difference), continuing to attract buyers priced out of the Westside and South Bay.

• Inventory Crunch: Long Beach remains a "Seller's Market" because its inventory (3.2 months) is tighter than the County average (3.9 months). This means multiple offers are still common in 2026 for turnkey homes.

• Mortgage Impact: With 30-year rates expected to hover around 6.0%, Long Beach is seeing a surge in "move-up" buyers who were previously "locked-in" to lower rates but are now ready to sel