How Has NJ Home Appreciation Compared to the Rest of the U.S.?
1. New Jersey’s Home Prices Have Risen Steadily—Even While Other Markets Cooled
Nationally, home prices saw massive spikes in 2021-2022, fueled by record-low mortgage rates. But in 2023-2024, markets in the South and West started to cool as interest rates climbed—and some places even saw price drops.
New Jersey? Still appreciating.
New Jersey Home Price Growth vs. Other States (2023-2024 Data):
- New Jersey: ⬆️ 7.4% year-over-year appreciation
- Florida: ⬆️ 5.6% (but slowing due to rising insurance costs)
- Arizona: ⬆️ 3.8% (major slowdown from the 2020-2021 boom)
- Texas: ⬆️ 2.1% (oversupply in major metro areas causing stagnation)
- California: ⬇️ -1.2% (declining in some high-cost areas)
Source: CoreLogic Home Price Index, Zillow Market Trends Report
While Sun Belt states saw explosive growth in 2021-2022, they’re now cooling off due to high insurance rates, an oversupply of new builds, and people leaving just as fast as they arrived.
New Jersey, on the other hand, doesn’t have the same migration-in/migration-out problem. People stay in NJ for the long haul, keeping demand strong and appreciation steady.
2. Why NJ Home Prices Keep Climbing While Others Slow Down
So, what’s behind NJ’s continued appreciation? Here’s what I see firsthand in the market:
A. Inventory Is STILL Tight—And It’s Not Getting Better
In states like Arizona and Texas, developers can just build new subdivisions when demand rises. That doesn’t happen in NJ.
- New Jersey is built out. There’s no wide-open desert for massive developments.
- Zoning restrictions limit new construction. Many towns make it extremely difficult to build high-density housing.
- Old homes dominate the market. NJ has one of the oldest housing stocks in the country, meaning true “move-in ready” homes are always in short supply.
When supply is tight, prices have nowhere to go but up.
B. NJ’s Property Taxes Are High—But That Keeps Demand Focused on the Best Towns
It’s no secret—NJ has the highest property taxes in the country (averaging over 2.2% of home value).
But while this drives some people out of the state, it doesn’t stop demand in the best towns. Instead, it forces buyers to focus on:
- High-ranking school districts (where buyers feel the taxes are worth it).
- Commuter-friendly towns with access to NYC or Philly.
- Historic and established neighborhoods that hold long-term value.
This is completely different from states like Florida or Texas, where lower taxes drive demand for new construction in far-flung suburbs that lose value when demand drops.
C. NJ Homeowners Stay Put Longer—Keeping Prices High
One of the biggest differences between NJ and the Sun Belt is how long people stay in their homes.
- In Arizona, Texas, and Florida, people move constantly—chasing new job opportunities or just relocating for lifestyle reasons.
- In New Jersey, homeowners stay for decades—especially in towns with strong family ties.
Even homeowners who are tempted to move often decide against it because they locked in low mortgage rates in 2020-2022. This “golden handcuff” effect means fewer homes hit the market, keeping inventory low and prices high.
3. What’s Next? Will NJ Home Prices Keep Rising?
Here’s what I predict for NJ home appreciation in 2025 and beyond:
✔️ Moderate but steady price growth (3-6% annually). Unlike the boom-and-bust cycles of the South and West, NJ is likely to see stable, long-term appreciation.
✔️ Top-rated school districts and commuter towns will hold the most value. Expect towns like Montclair, Ridgewood, and Princeton to stay competitive.
✔️ The Shore market will remain strong. Beach towns like Asbury Park, Long Branch, and Cape May continue to see heavy demand, especially for short-term rentals.
✔️ The luxury market ($1M+) will be softer, but still competitive. Higher-end homes may take longer to sell, but demand in NJ remains stronger than in cooling high-cost states like California.
Final Thoughts: NJ Real Estate Is Still One of the Strongest Markets in the Country
A lot of people assume NJ real estate is too expensive or not appreciating as fast as Florida or Texas. But in reality?
New Jersey has outperformed many of the “hot” migration states over the past year.
Tight supply and long-term homeowner stability keep prices high.
Unlike states that boom and bust, NJ real estate remains one of the most stable, appreciating markets.
If you’re thinking about selling or investing in NJ real estate, now is a great time. Prices are still rising, inventory is still tight, and demand remains strong.
Looking to sell a home fast in New Jersey? At Savannah Properties, we buy houses in ANY condition—giving homeowners a quick, stress-free way to sell without dealing with agents, repairs, or endless waiting.
Contact us today for a cash offer on your home.