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Why the Sand Section Is the Hottest Spot for New Builds in 2026 - jenneiferscortt - 10-19-2026
Ask any longtime South Bay resident where the energy is in Manhattan Beach real estate, and you will hear the same answer: the Sand Section. This compact stretch of coastline, running from the Strand up through the blocks near Manhattan Beach Boulevard, has always been a premium address. In 2026, though, it has become something more. It is the center of the city’s most ambitious residential construction, and the demand for new construction homes in Manhattan Beach is concentrated here more than anywhere else.
Why is this happening? The answer is a mix of lifestyle, scarcity, design, and economics. This guide breaks down what is driving the surge, what buyers and builders should know, and how to approach a Sand Section project with confidence.
What Makes the Sand Section Special
The Sand Section is the flat, walkable part of Manhattan Beach closest to the ocean. Homes here sit within a short stroll of the pier, the beach, the Strand bike path, and the downtown shops and restaurants along Manhattan Beach Boulevard and Highland Avenue.
A few features set it apart from the rest of the city:
- Walkability. Residents can reach the sand, coffee shops, restaurants, and farmers market on foot.
- Beach access. Many homes are a few blocks from the water, and some have partial or full ocean views.
- Community feel. Tree-lined walk streets, small lots, and a strong neighborhood identity give the area a village atmosphere.
- Lifestyle appeal. The area attracts buyers who want an active, outdoor-centered coastal life rather than a sprawling suburban property.
These qualities have always made the Sand Section desirable. What has changed is that the supply of older homes ready for replacement has collided with a wave of buyers who want modern construction.
The Aging Housing Stock Is Fueling Teardowns
Much of the Sand Section’s housing was built decades ago, often as modest beach cottages or mid-century duplexes. Those homes carry beach-town charm, but they also carry limitations: small rooms, dated electrical and plumbing systems, limited storage, and layouts that do not suit modern living.
Because the land is so valuable, the economics favor replacement. In many cases, the lot is worth far more than the structure on it. Owners and investors increasingly see teardown and rebuild as the best way to unlock a property’s full value. That dynamic is a major reason new construction has accelerated across the neighborhood.
Five Reasons New Builds Are Surging in 2026
1. Buyers Want Move-In Ready Perfection
Today’s luxury buyers are time-pressed. Many are executives, entrepreneurs, and professionals who do not want to manage a remodel. They would rather purchase a brand-new home with everything done to a high standard: modern systems, high-end finishes, and a layout designed for how people live now.
A new build also avoids the unpleasant surprises that can show up inside older walls, such as outdated wiring, hidden water damage, or deferred maintenance.
2. Modern Design Is in High Demand
Open floor plans, walls of glass, indoor-outdoor living, and clean architectural lines have become the signature of Sand Section new construction. Homes feature:
- Large sliding or folding glass door systems that open to patios and courtyards
- Rooftop decks designed to capture ocean views and sunsets
- Gourmet kitchens with oversized islands and professional-grade appliances
- Primary suites with spa-style bathrooms and generous closets
- Dedicated home offices, gyms, and flexible bonus rooms
For buyers who work from home at least part of the week, these features are not luxuries. They are requirements.
3. Smart Home Technology Is Now Expected
Buyers in 2026 expect their homes to be connected and efficient. New construction makes it easy to build in integrated lighting control, climate zoning, security systems, EV charging, and whole-home audio from the start. Retrofitting these systems into an older house is possible, but it is usually more expensive and less seamless.
4. Energy Efficiency and Building Codes
California’s building standards push new homes toward higher performance. That means better insulation, efficient windows, advanced HVAC systems, and often solar-ready or solar-integrated designs. For owners, the result is lower utility costs and a more comfortable home. Many buyers also value the sustainability story that comes with a new, efficient house.
5. Limited Land, Strong Demand
Manhattan Beach is nearly fully built out. There are no big tracts of undeveloped land, so every new home in the Sand Section comes from replacing something that already exists. That scarcity keeps competition strong and supports long-term value, which is attractive for both owner-occupants and investors.
What Buyers Are Paying Attention To
Not all new construction is equal. Buyers who are searching for new construction homes in Manhattan Beach are becoming more sophisticated, and they tend to focus on a few key areas.
Location within the Sand Section. Proximity to the beach, the walk streets, and downtown all influence value. Homes with ocean views or direct walkability to the sand command a premium.
Lot size and orientation. Many Sand Section lots are narrow, so smart design is essential. The best architects maximize light, privacy, and usable outdoor space, often through courtyards, rooftop terraces, and vertical layouts.
Quality of construction. Coastal exposure demands careful material selection. Salt air, moisture, and wind can age a poorly built home quickly. Buyers should look for corrosion-resistant hardware, proper waterproofing, and durable exterior materials.
Builder reputation. A beautiful design means little without a skilled builder behind it. A strong track record in coastal construction is one of the most valuable things a buyer or developer can look for.
The Challenges of Building in the Sand Section
The appeal is obvious, but building here is not simple. Anyone considering a project should understand the hurdles.
Tight Lots and Neighbor Proximity
Narrow lots and close neighbors require careful planning. Construction logistics, such as material deliveries, parking for workers, and noise control, can be complicated on walk streets and dense blocks.
Permitting and Approvals
Manhattan Beach has specific development standards covering height, setbacks, lot coverage, and floor area. Some parcels fall within the Coastal Zone, which can add additional review. An experienced team can navigate these requirements efficiently, while a less experienced one can lose months to revisions and resubmittals.
Soil and Groundwater Conditions
Properties near the ocean can have sandy soils and a high water table. These conditions affect foundation design, excavation, and waterproofing, and they can influence both cost and schedule. Early geotechnical investigation is essential.
Construction Costs
Luxury construction on the California coast is expensive. Labor, materials, and compliance costs all contribute. Budgeting realistically, including a contingency reserve, helps prevent financial stress during the build.
Design Trends Shaping Sand Section New Builds in 2026
If you drive through the neighborhood, you will notice certain themes appearing again and again.
- Coastal modern aesthetics. Clean lines, warm woods, white or neutral palettes, and large expanses of glass define the look.
- Rooftop living. Third-floor or rooftop decks with fire features, outdoor kitchens, and ocean views are among the most requested amenities.
- Courtyards and indoor-outdoor flow. Even on small lots, designers carve out private outdoor rooms that connect directly to living spaces.
- Wellness features. Home gyms, saunas, cold plunges, and meditation spaces are increasingly common.
- Natural materials. Stone, reclaimed wood, and textured plaster bring warmth and a connection to the coastal setting.
- Elevator-ready or accessible design. Many owners plan ahead for aging in place with elevator shafts or accessible layouts.
Is a New Build in the Sand Section a Good Investment?
For many buyers, the answer is yes, though it depends on your goals and timeline. Here are the main considerations.
Long-term appreciation. Coastal real estate in a supply-constrained city has historically held value well, although no market is guaranteed to rise. Prices can and do fluctuate with interest rates, the broader economy, and local conditions.
Lower maintenance costs. A new home typically needs fewer repairs in the early years, and many components come with warranties.
Resale appeal. Modern, well-designed homes tend to attract strong buyer interest when it is time to sell.
Personalization. Building new, or buying a spec home early in construction, gives you more control over finishes and layouts.
On the other side of the ledger, new construction usually carries a higher upfront price per square foot, and custom projects take time. It is smart to talk with a trusted real estate advisor and financial professional before making a decision.
How to Choose the Right Team
Whether you plan to buy a completed home or build your own, the people you work with matter enormously. Here is what to look for.
- Local experience. Ask how many Manhattan Beach and Sand Section projects the team has completed.
- Transparent pricing. Look for clear, detailed estimates that spell out what is and is not included.
- Strong communication. Regular updates and a single point of contact reduce stress.
- Verified credentials. Confirm licensing with the California Contractors State License Board and request proof of insurance.
- References and completed work. Tour finished homes and speak with past clients.
Where Reeland Investments Fits In
Reeland Investments is a name that buyers and homeowners exploring the Manhattan Beach market should know. With a focus on high-quality residential real estate in Southern California, Reeland Investments helps clients evaluate opportunities, understand the local market, and move forward with confidence, whether the goal is buying, building, or investing in new construction homes in Manhattan Beach.
If you are considering a Sand Section project in 2026, working with a team that understands the neighborhood’s rules, conditions, and market dynamics can make the entire process smoother and more rewarding.
Frequently Asked Questions
Why is the Sand Section so popular for new construction?
The Sand Section combines beach access, walkability, and a strong community feel in a limited area. Because land is scarce and many older homes no longer meet modern buyer expectations, owners and developers are replacing them with new, high-end residences.
How much do new construction homes in Manhattan Beach cost?
Prices vary widely depending on location, lot size, views, and finishes. Sand Section new builds are typically among the highest-priced homes in the city, often reaching well into the multimillion-dollar range. For current numbers, consult a local real estate professional and review recent comparable sales.
How long does it take to build a new home in the Sand Section?
Construction commonly takes 14 to 24 months, depending on size and complexity. Design and permitting can add several months before groundbreaking, so many owners plan for a total timeline of two years or more.
Do I need special permits to build near the beach?
Yes. All new construction requires permits from the city, and some properties may fall within the Coastal Zone, which can require additional review. A builder experienced in the area will know what applies to your specific lot.
Is it better to buy a new build or build my own custom home?
It depends on your priorities. Buying a completed new build is faster and more predictable. Building a custom home gives you full control over design but requires more time, decisions, and involvement. Consider your timeline, budget, and tolerance for the building process.
What should I look for in a coastal new construction home?
Pay close attention to waterproofing, corrosion-resistant materials, window and door quality, foundation design, and overall craftsmanship. Ask about warranties and request documentation for major systems.
Are new construction homes more energy efficient?
Generally, yes. Current California building standards require better insulation, windows, and mechanical systems than older homes were built with, which can reduce energy use and improve comfort.
Is 2026 a good time to buy or build in Manhattan Beach?
Market conditions change, and timing depends on your personal finances and goals. Strong long-term demand and limited supply have supported the Sand Section market, but interest rates and economic factors also play a role. Speak with local professionals who can evaluate current conditions for you.
Final Thoughts
The Sand Section’s rise as the hottest location for new builds in 2026 is no accident. It reflects a rare combination of premium location, limited land, aging homes ready for replacement, and buyers who want modern, high-quality living near the ocean. For those willing to plan carefully, set realistic budgets, and partner with experienced professionals, the opportunity is substantial.
Whether you are a buyer searching for the perfect coastal home or an owner thinking about a ground-up rebuild, the Sand Section offers a setting that few places can match.