Are you an apartment owner or investor looking to dive into the Long Beach fourplex market? In this video, we break down the latest trends, including sales data, price shifts, and inventory changes for 2023 vs. 2024. Learn why fourplexes are the ultimate gateway investment and what you can expect in 2025.
Why the Fourplex Market?
Fourplexes are often the gateway investment for real estate investors. They’re manageable, in high demand, and provide strong rental returns without the complexities of larger multifamily properties. Many investors start with a fourplex and quickly realize, if I can handle four, I can do more!
Long Beach, in particular, has more fourplexes than any other city in California, making it an ideal market to analyze. Let’s break down what happened in 2023 vs. 2024 and what to expect in 2025.
2024 vs. 2023: Sales, Prices, and Market Trends
1. Sales Volume Increased
Contrary to what many people assume about the market slowing down, sales actually went up in 2024.
- 2023: 48 fourplexes sold
- 2024: 54 fourplexes sold (+12.5%)
Many investors sat on the sidelines in 2023, waiting for prices to drop further. When they saw a slight dip in values, they jumped in, driving more sales.
2. Prices Dropped by 10%
On average, fourplex prices declined 10% year-over-year:
- 2023 Average Price: $1,395,000 (~$1.4M)
- 2024 Average Price: $1,225,000
Despite interest rates remaining relatively stable, this drop in prices was enough to motivate investors to move forward rather than wait any longer.
3. Properties Sold Faster
- 2023 Average Days on Market: 64 days
- 2024 Average Days on Market: 42 days (-34%)
This significant drop in days on market signals increased investor confidence. When investors saw good deals, they acted quickly.
For example, we recently listed a fourplex on Carson Avenue and received 11 offers—despite interest rates still being 6.85%. If a property is in the right location and offers the right value, buyers will compete for it.
4. More Inventory Became Available
Another key trend in 2024 was a rise in inventory, meaning more options for investors:
- 2023 Active Listings: ~24 fourplexes on the market at any given time
- 2024 Active Listings: ~40-42 fourplexes available
This increase in available properties, combined with lower prices, created better opportunities for investors looking to enter or expand their portfolios.
What to Expect in 2025
Looking ahead, here’s what I anticipate for the Long Beach fourplex market in 2025:
- Inventory Will Continue to Rise – More longtime owners will decide to sell, recognizing that while prices have dipped, they’re still up compared to pre-pandemic levels.
- More Investors Will Enter the Market – Many investors hate sitting on cash and will continue looking for deals, particularly as more fourplexes hit the market.
- Prices Will Likely Stabilize – With inventory increasing, we don’t expect another major price drop, unless interest rates rise significantly.
- If Interest Rates Drop, Prices Could Rise – A reduction in interest rates would increase buyer demand and potentially push prices higher.