Welcome to Unaffordable NJ: 10 Counties Join $500K+ Home Price Club
The outlook for homebuyers in New Jersey is increasingly bleak as home prices continue to rise out of reach for many residents. According to the latest data from Zillow, typical home values have increased across all 21 counties in the past year, with 10 counties now seeing typical values over $500,000.
This rapid home price appreciation is pricing many prospective buyers out of the market entirely. Making matters worse, incomes in New Jersey have not kept pace with the growth in home values. As a result, affordability has worsened dramatically, with many counties now requiring an income well over $100,000 to afford the median-priced home.
Cape May County tops the list with an astronomical typical home value of $680,176 as of September 2022, according to Zillow. This represents an increase of 9.8% from the year before, meaning home values grew nearly 10 times faster than wages in the county. Cumberland County remains the "most affordable" with a typical home value of $234,898, but even this increased 9.25% over the past year.
The inequality between home price growth and income growth has created a housing affordability crisis in New Jersey. Rising interest rates have only added fuel to the fire, making monthly mortgage payments less affordable even if home prices were to stabilize. First-time homebuyers hoping to break into the market are hit the hardest, often finding themselves priced out of their desired neighborhoods or unable to save quickly enough for a down payment as home prices gallop ahead.
With no relief in sight, many prospective buyers are putting their plans on hold indefinitely. Some may even consider leaving New Jersey altogether for more reasonably priced housing markets nearby. State and local policymakers will need to take bold action if every New Jersey resident is to have a realistic chance at homeownership.
| County | September 2022 | September 2023 | Percent Change |
|---|---|---|---|
| Cape May County | $662,728 | $680,176 | 2.63% |
| Monmouth County | $622,235 | $654,005 | 5.11% |
| Bergen County | $617,161 | $643,052 | 4.20% |
| Morris County | $565,507 | $602,285 | 6.50% |
| Hudson County | $568,003 | $576,137 | 1.43% |
| Union County | $508,902 | $541,204 | 6.35% |
| Hunterdon County | $525,320 | $551,971 | 5.07% |
| Somerset County | $543,595 | $578,861 | 6.49% |
| Essex County | $536,720 | $565,285 | 5.32% |
| Passaic County | $472,486 | $501,360 | 6.11% |
| Middlesex County | $461,849 | $492,941 | 6.73% |
| Ocean County | $457,714 | $478,180 | 4.47% |
| Camden County | $280,454 | $305,758 | 9.02% |
| Burlington County | $336,271 | $362,783 | 7.88% |
| Gloucester County | $309,972 | $334,040 | 7.76% |
| Atlantic County | $307,916 | $335,053 | 8.81% |
| Sussex County | $365,058 | $388,045 | 6.30% |
| Mercer County | $360,069 | $392,647 | 9.05% |
| Warren County | $352,907 | $371,024 | 5.13% |
| Salem County | $241,297 | $261,134 | 8.22% |
| Cumberland County | $215,006 | $234,898 | 9.25% |
