Coastal Value: Why California’s South Bay Still Beats the National Top 10
In the ever-evolving landscape of real estate, the National Association of Realtors (NAR) recently unveiled its Top 10 Homebuying Hot Spots for 2026. While the list highlights burgeoning markets like Charleston, SC, and Columbus, OH, for their affordability and inventory growth, it omits a glaring omission: the resilient, uniquely valuable pockets of coastal California.
Despite California’s reputation for astronomical prices, some real estate experts argue that NAR is “sleeping” on the Golden State—specifically on the hidden gems of the South Bay and the Port of Los Angeles. While the national forecast focuses on secondary markets with lower price points, it overlooks the intrinsic value and lifestyle “ROI” found in cities like San Pedro, Harbor City, and Long Beach.
San Pedro is perhaps the most overlooked coastal market in the state. Currently undergoing a massive $150-million redevelopment of its waterfront (West Harbor), the city offers a Mediterranean vibe with a grit and character that is disappearing in more “sanitized” coastal towns. It remains one of the last places in Los Angeles where you can find a view of the Pacific without the eight-figure price tag.
Adjacent to it, Harbor City serves as a true “hidden gem.” Often bypassed by those looking at more famous neighbors, it offers a central location and more attainable entry points for families. It provides the perfect middle ground for those who work in the South Bay but want a suburban feel with easy access to the coast.
Then there is Long Beach, a city that is practically a microcosm of California itself. With its diverse neighborhoods—ranging from the historic charm of Belmont Shore to the sleek, modern high-rises of downtown—Long Beach offers a level of urban density and cultural vibrancy that the NAR’s “Top 10” cities often lack.
While NAR’s 2026 report emphasizes markets where inventory aligns with modest budgets, Southern California’s coastal pockets continue to offer something different: long-term appreciation and an unmatched quality of life. For the savvy investor or homebuyer, the real “hot spots” might just be the ones the national headlines are ignoring.