As of 2025, New Jersey’s housing market continued to show rising prices but moderating sales activity. The median sales price across all property types reached approximately $525,000, an increase of about 5.4% from 2024, according to year-end data from New Jersey REALTORS®. Single-family homes saw even stronger gains, with median prices rising to roughly $585,000–$640,000 depending on the segment and timing of the year.
Homes continued to sell relatively quickly, although the pace slowed slightly. The average time on market increased to about 39 days in 2025, compared with the mid-30-day range in 2023, reflecting a gradual cooling from the extremely tight pandemic-era market. Sellers still retained an advantage, however, typically receiving about 101% to 102% of list price, indicating continued competition among buyers.
In terms of volume, approximately 86,400 homes were sold statewide in 2025, showing that while activity remained below peak pandemic levels, it stabilized after earlier declines driven by rising mortgage rates. New Jersey’s median home value is the seventh highest in the nation, behind other expensive states Hawaii, California, Massachusetts, Colorado, Washington, and Oregon, and is nearly half again as high as the national median of $240,500. For renters, New Jersey is the fourth most expensive state: its median rent of $1,376 trails only Hawaii, California, and Maryland. After a spike in home prices due to the COVID-19 lockdown and a resulting lack of inventory, prices began to moderate in the latter months of 2022 as the inflation in prices and higher mortgage rates reduced the number of potential buyers.
High-priced housing prevents households of modest means from being able to live in large areas of the state. Lower-income households are increasingly confined to the cities and towns with older housing stocks with primarily higher-density housing options. In New Jersey, median household income for white households is $85,423; for Black households, it is $51,309; for Hispanic households, $54,160.
Housing Costs, Affordability, and Policy in New Jersey
New Jersey remains one of the most expensive housing markets in the United States, though its precise national ranking varies depending on the measure used (median home value, median sale price, or cost-of-living indices). Recent data indicate that New Jersey typically ranks within the top 5–8 states for housing costs, alongside high-cost states such as Hawaii, California, Massachusetts, Washington, Colorado, and New York.
As of 2024–2025, the median home value in New Jersey is approximately $480,000–$550,000, depending on the source and methodology (e.g., Zillow Home Value Index vs. sales-based measures). This is substantially higher than the U.S. median home value, which is generally in the range of $340,000–$360,000, meaning New Jersey home values are roughly 30%–50% above the national average. Rental costs are similarly elevated.
New Jersey typically ranks among the top 5–7 most expensive states for renters, with median gross rents in the range of $1,600–$1,900 per month in recent estimates, compared with a national median of roughly $1,300–$1,400.
Housing costs vary widely within the state, with the highest prices concentrated in northern and coastal counties with strong job access to the New York City and Philadelphia metropolitan areas. Following a sharp increase in home prices during the COVID-19 pandemic (2020–2022), driven by low interest rates and limited housing supply, the market began to moderate in late 2022 and 2023 as inflation and rising mortgage rates reduced affordability. But rather than declining significantly, prices in New Jersey have generally continued to rise at a slower pace through 2024–2025, constrained by persistent inventory shortages.
High housing costs continue to limit access for many households. Lower- and moderate-income residents are often concentrated in areas with older housing stock and higher-density development, while many suburban communities remain financially out of reach. Income disparities further affect housing access. Recent estimates show that median household income in New Jersey is approximately:
White households: ~$95,000–$100,000
Black households: ~$60,000–$65,000
Hispanic households: ~$65,000–$70,000
These gaps contribute to unequal access to homeownership and housing stability across different populations.
- Availability of Land for Housing
Other longer-term factors also affect the state's real estate market. New Jersey is the nation’s most developed state, and land-use laws and regulations, along with the purchase of property for preservation and recreation, has reduced the acreage available for new housing. As of 2021, over half of the state’s total land area--nearly 2.5 million acres--consists of undeveloped land that has been protected to some degree from development.
Map depicting NJ Pinelands subject to development control under state and federal law. Image: NJ Department of Environmental Protection
The most significant measure affecting development was the enactment of the Pinelands Protection Act in 1979, which placed limits on development in some 20% of the state, but other programs have placed constraints on construction in other regions such as the Highlands, the Meadowlands, and the coastal zone, and additional legislation restricts development of freshwater wetlands throughout the state. Counties and local communities also have restricted construction through purchases of land for parks and open space, as well as through zoning restrictions and other land-use controls.
Ongoing climate change also may impact the coast and flood-prone areas; a Rutgers report published in 2020 estimated that--if there are few to limited actions to reduce fossil fuel emissions--the state may experience sea level rise of 1.5 to 3.5 feet by 2070, and 2.3 to 6.3 feet by 2100, with inland areas also increasingly prone to more severe flooding.
The purchase of land for preservation and recreation by the state and local governments and by private nonprofit groups also limits potential acreage for housing; In 1999, the Garden State Preservation Trust Act created a dedicated fund to preserve one million acres pursuant to a referendum approved by state voters in the previous year amending the New Jersey constitution to provide nearly $100 million annually for ten years dedicated to preservation efforts and authorizing the issuance of up to $1 billion in bonds to finance state and local preservation programs. The state farmland preservation program also offers payments and other incentives for continuing land in agricultural uses. Consequently, the combined forces of development, preservation and climate change have insured that the state's ability to meet future demand for housing will be stressed by the decreasing inventory of developable land, thus leading to increasing density, promotion of multi-family projects and inflation of prices. * Rowan/Rutgers report: Land Development slows in N.J. but coastal regions at risk, 9/11/2020, Rowan University * Sea Level Rise In New Jersey: Projections and Impacts, Rutgers Climate Change Resource Center * Garden State Preservation Trust, NJ Department of Environmental Prortection
Split-level home built in Princeton in 1950s. Image: NewJerseyAlmanac.com
- Buying or Renting
The first decision prospective homebuyers face is whether buying or renting makes the most sense for their personal situation. Historically, the purchase of a home has been perhaps the principal way many individuals and families build wealth, but other factors need to be evaluated.
New Jersey was the seventh most expensive location in the nation for renters in 2023, according to a report released by the National Low Income Housing Coalition, the second year in a row that the state held that position. Only California, Hawaii, Massachusetts, New York, Washington state and Washington, D.C., had higher rents.
The New Jersey counties with the most expensive two-bedroom apartments are Hudson, Hunterdon, Middlesex, Somerset and Bergen, the report found. Although rates vary widely by county, the average statewide “fair market rent” for a two-bedroom apartment in New Jersey is $1,742, up from $1,628 in 2022. A typical two-bedroom apartment at fair-market rent in Hudson County, however, would list for $2,088, but many go for much more, according to the report.
Homeowners commit large amounts of capital in the purchase of the home, in most cases incurring the largest debt of their lives. Additional financial liabilities are incurred for maintenance and repairs; insurance; taxes, and possibly condominium or association fees. These initial and continuing costs may tie up available capital to the point that other choices, such as to start a business or invest in securities or other types of assets, may be constrained. Analysts have also cited the high levels of debt from college loans--which one study estimated in New Jersey to total nearly $50 billion carried by some 1.3 million debtors with an average balance due of $33,000--as restricting the ability, particularly for first-time homebuyers, to finance home purchases or, when purchases are made, creating higher risks of default when unexpected career or financial reversals are encountered.
In addition to lower initial costs and the avoidance of mortgage debt, renters have the advantage of increased mobility, particularly attractive for younger people who may be changing jobs requiring their relocation to other towns or states; in contrast, homeowners who are presented with new career opportunities in other locations must consider the time and costs of selling or renting their house before relocating. In many areas of the state, rent levels are well above average incomes, particularly for lower-wage occupations. According to report released in 2021 by the National Low Income Housing Coalition, the average statewide fair market rent for a two-bedroom apartment was $1,662 monthly, which would require $66,468in annual income. * Out of Reach; The High Cost of Housing: New Jersey, National Low Income Housing Coalition
Row of Victorian homes leading to beachfront in Ocean Grove. Image: NewJerseyAlmanac.com
- Finding a home The decision on where to live, while obviously subjective, is frequently influenced by such factors as the location of jobs or businesses; other family residences; or lifestyle preferences to be near larger cities like New York City or Philadelphia or the resources of the Jersey Shore.
Internet services have significantly changed the past ways in which prospective homebuyers search for available properties. These services publish online images of homes and information on home prices, taxes, and such details as number of bedrooms, lot size and such. The largest of these webs is provided by the site Zillow operated by The Zillow Group, Inc.; Zillow also operates its subsidiary Trulia, a former competitor which it acquired in 2015. Competitive services also are published under Realtor.comoriginally launched as a closed network for members of the National Association of REALTORS®, the real estate sales industry's largest trade association, and subsequently expanded into a publicly accessible website which was later acquired by News Corp. and now operates under license from the NAR. Other web services include Redfinand Homesnap.
Most brokers and salespersons also belong to a Multiple Listing Service, frequently referred to as "MLS", a nonprofit organization that brokers use to establish contractual offers of cooperation and compensation among brokers and accumulate and disseminate information to enable appraisals. The MLS database and software allows information to be shared with other brokers who may represent potential buyers or wish to work with a seller's broker in finding a buyer for the property. Most MLS systems restrict membership and access to real estate brokers (and their agents) who are licensed by the state, are members of a local board or association of realtors, and are members of the applicable national trade association. The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller.
Upscale town home in Princeton. Image: NewJerseyAlmanac.com
- "Best" Places to Buy
Some surveys have attempted to publish rankings of the "best" places to buy or live on the basis of varying criteria, sometimes using a blend of categories like home values, income, crime, schools, cost of living, job opportunities and others. Niche.com, a Web site publishing various ratings and reviews, has posted "Best Places to Buy a House in NJ" which ranked the following as top locations (not all of which are separate municipalities) along with median home value: Princeton Junction (section of West Windsor Township, Mercer County, median home value $548,400); Robbinsville (Mercer County, median home value $430,100); Monmouth Junction (section of South Brunswick Township, Middlesex County, median home value $433,800) Beckett (section of Swedesboro-Logan Township, Gloucester County, median home value $232,900); and Mountain Lakes (Morris County, median home value $867,200). * 2022 Best Places to Buy a House in New Jersey, Niche.com * 2022 Best Places to Live in New Jersey, Niche.com * Best Places to Live New Jersey, BestPlaces.net
Highest Home Prices in New Jersey
Data compiled by Zillow and other housing sources show that New Jersey’s most expensive housing markets remain concentrated in Bergen County suburbs near New York City and Jersey Shore communities.
As of 2024–2025, the municipalities with the highest typical home values (Zillow Home Value Index) include approximately:
Deal: ~$3.2–$3.5 million
Alpine: ~$2.8–$3.1 million
Avalon: ~$2.6–$3.0 million
Stone Harbor: ~$2.5–$2.9 million
Mantoloking: ~$2.2–$2.6 million
Bay Head: ~$2.0–$2.3 million
Saddle River: ~$1.9–$2.2 million
Sea Girt: ~$1.8–$2.1 million
Short Hills (Millburn Township): ~$1.7–$2.0 million
Harvey Cedars: ~$1.7–$2.0 million
These figures reflect “typical home values” (ZHVI) rather than closed-sale medians, and they fluctuate with market conditions. Overall, prices in these top-tier communities have continued to rise modestly since 2023, driven by limited inventory and sustained demand for luxury and second-home properties.
More targeted home searches often focus on municipalities with consistently high median sale prices and household incomes, including:
Alpine (Bergen County): One of the most expensive ZIP codes in the United States, with median home prices often near or above $3 million; located about 15 miles from Manhattan and known for large estates and celebrity residents.
Short Hills (Millburn Township, Essex County): A highly sought-after suburban community with median home prices typically in the $1.6–$2.0 million range, strong schools, and direct rail access to New York City.
Avalon and Stone Harbor (Cape May County): Adjacent barrier-island communities on Seven Mile Island, known for luxury vacation homes and limited land supply; median prices frequently exceed $2 million.
Englewood Cliffs (Bergen County): Affluent suburb with proximity to Manhattan and median home prices generally around $1.1–$1.4 million.
Rumson (Monmouth County): High-income community near the Jersey Shore; median home prices typically range from $1.2–$1.6 million, with some waterfront properties far exceeding those levels.
These communities illustrate the two dominant drivers of high housing prices in New Jersey:
Proximity to major employment centers (especially New York City)
Scarcity of land in desirable coastal or suburban locations
Notes on Trends
Many shore communities (e.g., Avalon, Mantoloking) saw sharp price increases during the pandemic, driven by second-home demand.
Northern New Jersey suburbs continue to command premium prices due to commuter access, schools, and limited developable land.
Inventory constraints remain a key factor keeping prices elevated even as mortgage rates have risen.
Homes in need of rehabilitation in Trenton. Image: NewJerseyAlmanac.om
- Lowest Sales Prices
More affordable places to buy homes include communities which may have experienced varying levels of distress or which have neighborhoods in need of rehabilitation. Some of these municipalities include Phillipsburg, (Warren County, median home price $140,100, former industrial center on Delaware River across from Easton, Pennsylvania); Somerdale, (Camden County, median home price $170,500); Stratford,(Camden County, median home price $179,100); Pitman (Gloucester County, median home price $185,600); Rahway (Union County, median home price $265,300, former corporate headquarters and research center for Merck & Co.); Hightstown (Mercer County, median home price $267,600, located at exit 8 of NJ Turnpike and Route 33:; Toms River (Ocean County, median home price $278,700, includes shore beaches, Community Medical Center, NJ's largest non-teaching hospital); Pompton Lakes (Passaic County, median home price $294,800, located on I-287 about 20 miles from Manhattan).
- Apart from average sale prices, prospective home buyers may also wish to consider looking for more affordable homes which need repairs or updates. New Jersey's peak period of home construction was in the post World War II 1950-70 period, and this large supply of older homes understandably may now need renovation or fixes. But a cheaper price poses risks, and buyers of fixer-uppers need to understand that projects easily can become more costly and complicated than anticipated.
Most homeowners interested in selling their residences utilize a real estate broker or other sales professional licensed by the New Jersey Real Estate Commission, a unit of the state Department of Banking and Insurance. To obtain a broker's license, an applicant must have a high school education or equivalency, and successfully complete 150 hours of education on real estate law, regulations, ethics and management and pass an examination conducted by the Commission. In addition, applicants must have been continually licensed and employed on a full-time basis as a New Jersey real estate salesperson for the three years immediately preceding their application; salespersons must complete a 75-hour pre-licensure course at a licensed school, pass the license examination and then apply for a license through a sponsoring real estate broker. The Commission is authorized to conduct investigations, hold hearings and revoke licenses and otherwise sanction individuals and firms for violations of the license law or its administrative rules. The term "REALTOR®", while often confused with "broker," is a trademark belonging to the National Association of REALTORS®, which it restricts for use by its licensed real estate salespersons who are NAR members.
Traditionally, real estate brokers had charged a commission of 6% of the property sale with individual brokers commonly paying their brokerage firm a share of the commission of each sale and splitting the commission with any broker representing the buyer. In recent years, however, the 6% commission rate came under pressure, with. more sellers seeking to negotiate discounts on the prevailing rate, and an increasing number of sellers attempting to avoid paying commissions by listing as "For Sale By Owner." or FSBO--the process of selling without the representation of a broker or agent by marketing their own property, usually with the help of a lawyer to prepare or review documents needed to implement the sale. Internet services like Houwzer.com, Rex.com, and HomeLight.com also have been launched to offer discounted commissions, sometimes after working with brokers who receive retainers or other compensation in return for lower commission rates.
In July 2024, Governor Phil Murphy signed the Real Estate Consumer Protection Enhancement Act intended to protect consumers participating in residential and commercial real estate transactions. The new state law was initiated as a result of a significant Missouri federal court decision in October 2023 against the National Association of Realtors and other real estate companies which found them liable for charging home sellers excessive commission fees. The NAR then settled a series of class action lawsuits where it had been alleged that its compensation rules forced sellers to advertise compensation for buyer’s agents on its Multiple Listing Service and that such behavior constituted an antitrust violation by reducing competition and artificially inflating commission prices through imposing a total of 5% to 6% of the sales price in commissions shared by their own real estate agent and the buyer’s,. This practice was found to eliminate any possible bargaining power a buyer might enjoy. To settle the litigation. NAR agreed to pay more than $400 million in damages and also agreed to make industrywide changes, which went into effect Aug. 17. Under the NAR settlement, sellers will no longer be required to pay the agents of buyers and, before an agent can show a buyer a property, buyers will be required to sign contracts with their agents which are specific with respect to compensation. If a seller does not want to provide compensation to the buyer’s agent, the buyer will have to pay the whole fee.
These changes are essentially codified under New Jersey’s new law, which became effective Aug. 1, all licensed real estate brokers are required to use a buyer representation agreement, enumerating their compensation and the services that will be provided to clients for sale and rental listing agreements for residential real estate. The agreements are to be signed by buyers and tenants. Potential buyers will not be able to visit a property privately until there is a signed agreement. The result will be that a buyer may be responsible for paying the real estate agent’s commission if the seller declines, unlike the traditional practice where the seller paid the commission. Essentially, the commission to be paid by the buyer will be part of the offer and a negotiable issue. It is possible that other pricing structures could become popular. Agents may offer to represent buyers based on a flat fee or hourly service.
Nonnegotiable commissions can no longer be posted on the MLS. As a result, buyers will have more negotiating power. Buyers’ agents will not attempt to steer their clients to sales that would generate higher commissions for them.
Additionally, listing agents must disclose whom they represent at an open house with the use of visible signage at the entrance to the home or on a sign-in sheet. Another important feature of the New Jersey law is the requirement that residential sellers and landlords offer a completed and signed seller’s property condition disclosure form. The document will provide details about the condition of the property and any historical issues, providing purchasers with important information.
Home in age 55+ retirement community in South Brunswick. Image: NewJerseyAlmanac.com
- Mortgages and Financing
Obtaining a home mortgage, like other segments of the real estate market, has grown from a business primarily dominated by local banks to a global search for available capital, frequently by using the Internet to search and compare competing programs. Mortgages, which in past decades were often held by local banks, also now are packaged into securities sold or traded on wide-scale markets, a factor often cited as one of the causes leading to the 2008 financial crisis.
Mortgage payments and the amount of interest paid will be determined, in large part, by the term or length of time to pay off the mortgage, with the most typical terms 30 or 15 years. A 15-year mortgage is paid off in half the amount of time as a 30-year mortgage, so the monthly mortgage payment will be much higher, generally 1.5X that of the 30-year term mortgage. In addition to mortgages paid at fixed interest rates over the term, adjustable rate mortgages also have become increasingly utilized, which provide for periodic adjustment of interest rates at specified periods, such as at every five years of the term.
In some situations, programs of the federal, state and local governments may also assist in financing and purchase of homes. These include:
- Federal Housing Administration Loan Assistance HOME Investment Partnerships Program (HOME) provides funding to states and localities that communities use-- often in partnership with local nonprofit groups-- to fund a wide range of activities including building buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. This program provides grants to state and local housing agencies for rental assistance, construction of new dwelling, housing rehabilitation, and first-time homebuyer programs. Eligibility is limited to households with incomes at or below 60 percent of median county income.
- Veterans Administration Home Loans Helps servicemembers, veterans, and eligible surviving spouses become homeowners through a home loan guaranty benefit and other housing-related programs to help buy, build, repair, retain, or adapt a home for personal occupancy. Loans are provided by private lenders, such as banks and mortgage companies, with the. VA guaranteeing a portion of the loan, enabling the lender to provide more favorable terms.
- New Jersey Housing & Mortgage Finance Agency Provides a variety of programs for prospective homebuyers, including home-buyer programs, as well as grants and loans for housing rehabilitation. The First-Time Homebuyer Mortgage Program is its foundational mortgage program that can be combined with the Down Payment Assistance Program, which provides qualified buyers with $10,000 as an interest-free, five-year forgivable second loan with no monthly payment that can be used to cover down payment and closing costs.The first mortgage loan is a competitive 30-year, fixed-rate government-insured loan, originated through an NJHMFA participating lender, with the loans restricted to maximum household income and purchase price limits.
The New Jersey residential real estate market also is impacted by the state's high property taxes, which in 2021 were the highest annual average bill of all states at $9,284, a 1.9% increase over 2020 and 6.8% higher than in 2017. The state average was over $2,400 higher than that of second-highest Connecticut. according to a survey conducted by WalletHub.com. The overall burden of property taxes also was exacerbated by the enactment of federal income tax legislation commencing in the 2018 tax year which placed a $10,000 limit on deductions for state and local taxes, or "SALT". New Jersey elected officials have contended that the cap on SALT deductions has worsened the rate of migration of upper-income homeowners and taxpayers moving out of the state, which has been the highest of all states for the past three years through 2020, according to the annual study published by United Van Lines.
Property tax bills understandably tend to be highest where property values are highest. Among the municipalities with the highest average tax bills—Tavistock, Millburn, Mountain Lakes, Tenafly, Demarest, Glen Ridge, Rumson, Alpine, Essex Fells, and Princeton—all have average residential values of more than $600,000 (compared to the statewide average of $330,578), and in half of these communities the average home value is more than $1 million. Four of the towns are also in the top ten municipalities with the highest median household incomes. High property tax rates are found most consistently among municipalities where incomes are lower. Of the ten municipalities with the highest tax rates—Woodlynne, Salem, Penns Grove, Hi-Nella, Trenton, Egg Harbor City, Pleasantville, Irvington, Lindenwold, and Laurel Springs—all but one rank in the bottom 50 municipalities with the lowest median household incomes, and four of them have median incomes that are less than half the statewide median. * NJ Property Tax Statistical Information, Division of Taxation, NJ Department of the Treasury * Property Taxes by State 2021, Wallethub.com * NJ Property Taxes by County and Municipality, NJ Department of Community Affairs
