Buying a Second Home at the Jersey Shore: What to Know in 2026

For a lot of New Jersey and New York families, a place "down the Shore" is the dream: a porch, a short walk to the beach, and a home base for summers that turn into traditions. Buying a second home here is very doable, but shore property comes with its own rules and costs. Here's what we walk our buyers through at Glenmary Real Estate before they write an offer.

1. Start with how you'll use it

Your plans shape everything from the town you choose to the mortgage you qualify for:

• Personal use only? You'll want a town that matches your lifestyle (see our guide to Shore towns).
• Part-time rental? Check local rental ordinances first. Many shore boroughs require rental registration, inspections, or a certificate of occupancy between tenants, and some set minimum stays.
• Mostly rental? Lenders treat a property you mainly rent out as an investment property, not a second home. That usually means a larger down payment and a higher rate. Be upfront with your lender about your plans.

2. Understand flood risk, and the 2024 disclosure law

Most homes near the ocean, Barnegat Bay, the Manasquan River, and the canal sit in or near a FEMA Special Flood Hazard Area. In Point Pleasant Beach, Redfin's climate data (from First Street) estimates 88% of properties face severe flood risk over the next 30 years.

New Jersey's flood disclosure law (P.L. 2023, c.93) changed the rules for buyers. Since March 20, 2024, sellers must complete a flood-risk section of the Seller's Property Condition Disclosure Statement, covering whether the home is in a FEMA flood zone, its flood history, any flood insurance claims, and any federal disaster assistance received. Landlords have similar disclosure duties to tenants.

What to do:

• Read the disclosure carefully and ask for the elevation certificate if one exists.
• Look up the address on FEMA's Flood Map Service Center (msc.fema.gov).
• Get a flood insurance quote (NFIP and private) before attorney review ends. FEMA's Risk Rating 2.0 pricing means premiums can differ a lot between two similar homes.
• Ask about elevation, flood vents, and storm history, especially for older or ground-level homes.

3. Budget for the full cost of ownership

Beyond the mortgage, plan for:

• Property taxes. Rates vary a lot between neighboring boroughs. Check the specific town. Note that state relief programs such as ANCHOR generally apply only to your principal residence, not a second home.
• Insurance: homeowners, wind/hurricane coverage, and flood insurance.
• Seasonal upkeep: winterizing pipes, outdoor showers, and irrigation; storm prep; snow and wind checks while you're away. Many owners hire a local property manager.
• HOA or condo fees for condos and townhomes, plus any special assessments.

4. Know who pays the "mansion tax" now

New Jersey's Graduated Percent Fee, better known as the "mansion tax," applies to qualifying residential sales over $1 million. For sales on or after July 10, 2025, it's paid by the seller, not the buyer, at tiered rates: 1% above $1 million, 2% above $2 million, 2.5% above $2.5 million, 3% above $3 million, and 3.5% above $3.5 million (the rate applies to the entire sale price, not just the amount over each threshold; confirm current rules with the NJ Division of Taxation or your attorney). The seller also generally pays New Jersey's realty transfer fee.

For buyers, that means one less closing cost than before. But expect sellers above $1 million to factor the fee into their pricing and negotiations.

5. Expect attorney review

In New Jersey, most residential contracts prepared by real estate licensees include a three-business-day attorney review period. During that window, either side's attorney can review, propose changes, or cancel the contract. Use those days well: line up your inspection, flood insurance quote, and financing questions right away.

You'll also receive New Jersey's Consumer Information Statement, which explains whether your agent is acting as a buyer's agent, seller's agent, disclosed dual agent, designated agent, or transaction broker. Read it. It tells you whose interests your agent represents.

6. Inspect for the Shore, not just for a house

A standard home inspection is just the start. At the Shore, also consider:

• Wood-destroying insect and moisture inspections
• Bulkhead, dock, and seawall condition for waterfront homes (repairs can be expensive and may need permits)
• HVAC and mechanicals placement relative to flood elevation
• Roof and windows rated for coastal wind
• Survey to confirm lot lines, easements, and beach or water access

7. Time your purchase

Spring and early summer bring the most competition. Fall and winter often bring fewer buyers, motivated sellers, and the chance to see a town as locals do. In Point Pleasant Beach, homes sold in a median of 41 days in the three months ending September 2026, at about 2% below list price on average. Closing in winter also gives you time to furnish, renovate, or set up rentals before Memorial Day.

8. Work with a local team

Shore real estate is block by block. Two homes a street apart can have very different flood zones, insurance costs, rental rules, and resale values. A local agent who knows the towns, plus a New Jersey real estate attorney, insurance agent, and lender who work at the Shore, will save you time and money.

Ready to find your place at the Shore?

Glenmary Real Estate is based at 409 Richmond Ave, Ste 102 in Point Pleasant Beach, and we help second-home buyers across Monmouth and Ocean Counties every year. Call 732-630-3000 or start your search.

Sources (checked Oct 21, 2026): NJDEP Flood Risk Disclosure (P.L. 2023, c.93): dep.nj.gov/flooddisclosure/ · FEMA Flood Map Service Center: msc.fema.gov · NJ Division of Taxation, Realty Transfer Fee & Graduated Percent Fee: nj.gov/treasury/taxation/realty.shtml · NJ ANCHOR program: nj.gov/treasury/taxation/anchor/ · NJ Real Estate Commission, Consumer Information Statement (Bulletin 24-11) · Redfin, Point Pleasant Beach market & climate data: redfin.com/city/15482/NJ/Point-Pleasant-Beach/housing-market

This article is general information, not legal, tax, insurance, or financial advice. Consult a New Jersey attorney and tax professional about your situation.