Learn more about the housing market in New Jersey

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  In the case of New Jersey, the picture in 2025 shows continued strength: the median home sale price is approximately $564,400, representing a year over year increase of 5.8%. While the market remains competitive with strong demand, rising inventory and a moderating appreciation pace hint at a potential shift toward more balanced conditions. However, affordability remains a significant concern across the state as prices stay elevated relative to typical household income.

New Jersey Housing Market Overview 

New Jersey has a number of unique draws for prospective home buyers. Some may head towards the shore for a beach house, while others flock to the northern or southern points for easy access to New York or Philadelphia, respectively. Newark and Jersey City may appeal to the younger crowd who enjoy a booming nightlife and restaurant scene.  

However, before moving to New Jersey, it’s important to take certain aspects of the New Jersey housing market into consideration. According to data from IBISWorld, New Jersey’s economy remains one of the largest and most diverse in the country, with a 2025 state GDP exceeding $691.4 billion and a population of nearly 9.6 million. While New Jersey’s long-term population growth lingers around the national average, the state saw a measurable increase in 2024–2025 as thousands of new residents arrived from New York and Pennsylvania seeking relatively more affordable suburban housing and hybrid-work flexibility.

By late 2025, New Jersey’s median home sale price reached approximately $564,400, up 5.8% year-over-year, according to Redfin. Inventory has also grown modestly, giving buyers slightly more options, though the market remains tight due to years of undersupply and homeowners reluctant to give up lower mortgage rates.

Experts also anticipated that mortgage rates would stabilize above 6%, and this prediction has held. According to Freddie Mac’s Primary Mortgage Market Survey, national 30-year fixed rates settled at 6.24% heading into late 2025, with New Jersey tracking closely to these averages at 6.5%. As borrowing costs level off, New Jersey’s housing market is showing early signs of stabilizing, but high prices, elevated taxes, and limited new construction continue to constrain affordability throughout much of the state.

Despite these issues, New Jersey’s wide variety of locales appeal to many different demographics and continue to bring in new residents each year. . In 2025, the state posted a net migration gain of about 40,000 people, largely driven by international immigration, which helps balance continued domestic outflow. While the state remains a net gainer overall, the pattern of elevated housing costs and high taxes means the market is expected to stay closely balanced heading into 2026, as demand from new arrivals is met by slowly increasing supply and modestly stabilizing price growth.  

New Jersey Housing Market Trends 

To understand the New Jersey real estate market, it’s important to keep up with trends. Let’s look at some key ones in New Jersey: 

Note: These statistics are based on Redfin’s monthly housing data from April 2024. 

Median Home Price 

The median home price in New Jersey is $564,400 as of October 2025. This marks a 5.8% increase over last year, which is up there with some of the biggest jumps in the nation. In October of 2025, the national median home price was $439,701—New Jersey homes clearly hurdle right over this average. 

Number of Homes Sold in April 2024 

In October of this year, there were 7,828 homes sold in New Jersey, which is an increase of 2.5% since last October. It’s also important to keep in mind that this number might be lower compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow considerably in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in New Jersey is 45 days, up seven days year-over-year. An increase in DOM generally indicates that homes are taking longer to sell, suggesting the market is cooling slightly as buyers gain more breathing room. When buyer demand outweighs available inventory, DOM tends to fall because homes move quickly. But as inventory rises or buyer activity slows, listings remain on the market longer, pushing the DOM upward.

New Supply Statistics 

New Jersey suffers from low supply, as does much of the nation. However, the state's conditions have improved slightly compared to previous years, and is likely to continue to do so in 2026. As of October 2025, the state has about 3 months of housing supply, with 31,707 homes for sale statewide. This is a 9.2% increase year-over-year. The number of newly listed homes also rose modestly to 9,187, up 1.8% from the previous year.

Months of housing supply refers to how many months it would take for all the current for-sale homes to be bought given how fast homes are selling per month in that region. Anywhere from four to five months is average, while six months would signify an especially stable market. With only three months of supply, New Jersey still leans toward a seller’s market, though rising inventory suggests conditions are gradually easing.  

It's clear that sellers in the state are hesitant to sell their homes. Some of this hesitancy could come from today’s high mortgage rates. If sellers leave their current homes, there is a high likelihood that they’d be forced to pay a higher rate in a new home. At the same time, New Jersey has historically had low levels of new construction, making it difficult for supply to grow fast enough to meet demand.

As inventory slowly increases, buyers may see slightly more options heading into 2026, but unless construction and listing activity rise meaningfully, the state’s supply constraints will continue to put upward pressure on prices.  

Property Tax Rate 

New Jersey’s average property tax rate is 2.23%, the highest in the nation. If someone were to purchase a home in New Jersey worth $384,700, they would spend over $8,500 a year in property taxes alone. Many residents have mentioned property taxes as the most important issue facing New Jersey residents right now, and the second highest issue stated was the cost of living. In a Monmouth University Poll, 48% of respondents said they’d like to leave the state due to these issues. 

It’s important to point out that property taxes vary widely depending on the specific county of New Jersey and the value of the home, so this average rate may or may not be indicative of your situation.  

Foreclosure Rate in 2025

For the first quarter of 2024, 1 in every 3,716 homes in New Jersey experienced a foreclosure filing. This makes New Jersey the state with the 12th most foreclosures in the nation.

Atlantic City, New Jersey saw some of the highest urban foreclosure rates at one in every 628 housing units in 2024. However, statewide foreclosure activity has eased since then. According to ATTOM’s mid-2025 data, New Jersey’s overall foreclosure filing rate has declined to 0.18% of housing units, reflecting a meaningful improvement from the prior year. Even with this progress, ATTOM still identifies New Jersey as one of the more foreclosure-vulnerable states due to its combination of high ownership costs, elevated property taxes, and affordability pressures.

Hottest Local Markets in New Jersey

1. Newark

Newark, NJ is the largest city in New Jersey and a hub for transportation to the major cities on the East Coast. Newark’s unemployment rate has seen a slight increase in 2025, rising up from 4.8 in April to 5.9 in August. Because this rate is higher than the national average of 4%, the city’s labor market remains a concern, and elevated unemployment can place added pressure on the local housing market rather than strengthen it.

Newark saw home prices that were up 11.9% higher than last year, selling for an average price of around $588,000. Last year, Newark sold 96 homes in October, and this year the number of homes sold is up to 103.  

Redfin characterizes the Newark market as somewhat competitive—some homes get multiple offers and can go pending as quickly as 21 days. Most, however, go pending around 61 days, which is relatively slower than the nation’s average.  

2. Edgewater

One of the hottest housing markets in New Jersey is Edgewater. Edgewater, NJ, is on the Hudson River and boasts lovely water views. There are also many popular restaurants and historic areas to explore.  

The housing market in New Jersey’s Edgewater is also something to brag about. There were only 18 homes sold in October of this year, but the the average sale price for a home sits at $655,000. In May of 2024, it skyrocketed and reached the highest price since 2021 of $1.2M.  

If you can afford a home in this area, you will benefit from a market that is not very competitive, most likely due to the heightened sale prices. Homes typically sells 2% below list price and can go pending around 80 days.  

That said, this area is only viable for some of the wealthiest New Jersey residents. If you are looking to sell your home in this city, it’s rare that you will get to choose between multiple offers and you may be looking at a long road ahead for selling your property.  

3. Trenton

Trenton, NJ is the capital of the state and the former capital of the United States. The area has a lower home ownership cost compared to other areas of New Jersey—the median sale price for homes is around $244,000 which is much lower than the national median of $438,601 and even lower than the state’s median of $564,400.  

Although home prices aren’t as high in this area as is typical for NJ, the median sale price has increased over 12.2% since last year. Some homes get multiple offers and can go pending anywhere from 27-59 days.  

Economic Factors Impacting the New Jersey Housing Market 

A holistic view of the housing market in New Jersey requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

The current interest rates in New Jersey are 6.25% for a 30-year fixed mortgage. Comparatively, the average interest rate in the United States is 6.24%. 

Mortgage rates are expected to remain well above historical lows, and with rising home prices and mortgage rates as they currently are, it can be difficult for New Jersey residents to afford a home that is below 30% of their monthly income. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners across the nation report feeling “tied” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one if they move to a new property. Prospective buyers in New Jersey would be wise to monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates relate directly to inflation, another massive contributing factor to the affordability of housing and the status of housing markets in general. In New Jersey, the consumer price index recorded a 3.4% year over year inflation rate in late 2025, which keeps cost pressures elevated for homeowners.This means fewer people can truly afford to limit housing costs to less than the recommended 30% of their monthly income, and this is a situation likely to persist into 2026 unless incomes or supply improve significantly.

Population Changes and Demographics

The current population of New Jersey is 9.6 million, continuing its steady incline since even before 2000. The employment rate for this population is 63.8%, higher than the February 2024 United States average of 62.3%.  

Housing Market in New Jersey Forecast 

Strong demand combined with only modest supply growth signals some potential opportunities ahead in New Jersey’s housing market. According to Fannie Mae's market outlook, home price growth in the state is expected to remain steady at roughly +3.8% in 2025 and +3.6% in 2026.

Most experts believe New Jersey will continue to see price increases, though at a slower pace. Forecasts for 2026 suggest the market will still lean toward sellers, though conditions may become more balanced as inventory gradually improves and rate pressures begin to ease.

Likelihood of New Jersey Housing Market Crash  

A housing market crashes typically due to a rapid decline in home value. As long as demand exceeds the supply in the market, a housing market crash is relatively unlikely.  

According to Redfin, New Jersey’s housing inventory expanded by 9.2% year-over-year in October 2025, but the state still has only about 3 months of supply, well below the 5-6 months typically considered balanced

At the same time, New Jersey’s job market remains stable, with robust demand and limited inventory providing structural support for home values rather than collapse.

Forecast for The U.S. Housing Market 

Now that we’ve looked at New Jersey's housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?  

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

New Jersey Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

In 2025, renters in New Jersey are facing tighter market conditions: the average rent state-wide is about $2,450, according to Zillow. While rent growth has slowed slightly—down $50 year-over-year—the average remains significantly above the national average.

Despite the modest cooling in 2023–24, the underlying affordability challenge remains. Even as inventory enters the rental market and some demand eases, rent increases continue to outpace income growth, suggesting many renter households still strain to keep housing costs below the broadly recommended threshold of 30% of income.

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

Looking ahead to 2026, unless rental supply expands meaningfully or wage growth accelerates, New Jersey’s rental market is likely to remain one of the more expensive in the nation—creating sustained pressure on lower- and middle-income renters.

This short summary leads directly into New Jersey’s current rental market, with key trends from Zillow:

New Jersey Rental Market Key Trends 

• Median Rent: $2,450 

• Month-Over-Month Change: -$50

• Year-Over-Year Change: -$50

• Available Rentals: 18,909

Conclusion 

New Jersey can be a great place to live in for commuters to New York City, or for those who simply want to be a part of the action on the East Coast. However, this state has the highest property tax rate and an expensive cost of living. As we look ahead to 2026, the state’s market appears poised for gradual stabilization rather than dramatic shifts. Forecasts suggest that home prices will continue to rise, but at a slower, more manageable pace as inventory expands and mortgage rates level off in the low-6% range. Before moving to New Jersey, it’s a good idea to do thorough research on the market and be sure that you have enough money set aside to afford a house with prices as high as the average price tag in a New Jersey neighborhood. 

FAQs

What is the current state of New Jersey’s housing market?

New Jersey’s housing market remains competitive, with strong demand and gradually increasing inventory. Conditions are beginning to ease slightly, but sellers still hold most of the leverage.

Are home prices still rising in New Jersey?

Yes, but price growth has begun to moderate. Homes are still appreciating, just at a slower and more sustainable pace compared to the rapid increases seen earlier in the decade.

Is New Jersey a buyer’s or seller’s market?

The state remains a seller-leaning market, though improving inventory and slightly longer selling times indicate that conditions are slowly moving toward greater balance.

How are mortgage rates influencing the market?

Mortgage rates have stabilized, creating more predictability for buyers, but they remain high enough to limit affordability and discourage many homeowners from listing their properties.

Why is housing affordability such a challenge in New Jersey?

Home prices, taxes, and general living costs remain elevated, making it difficult for many households to keep housing expenses within recommended limits—even as inventory improves.

Is New Jersey at risk of a housing market crash?

A crash is unlikely because buyer demand remains steady, supply is still limited, and the state’s job market remains relatively stable—factors that help support home prices.

Which areas of New Jersey are seeing the strongest housing demand?

Urban markets, waterfront towns, and communities with easy access to New York City continue to see steady interest from buyers looking for convenience and lifestyle amenities.

What is the outlook for New Jersey’s rental market?

Rents are expected to remain high, and affordability challenges are likely to persist. Without a significant increase in rental supply, the market will continue to favor landlords heading into 2026.