7 Infuriating Reasons Nobody Can Afford Homes In New Jersey

How's the house-hunting process coming? Still not in a home yet? If you live in New Jersey, that's a shock to literally no one. It's almost IMPOSSIBLE to buy a decent home in the Garden State right now.

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If you're anything like me, you're currently pulling your hair out every single day having to deal with NJ's real estate market. For any household that brings in less than $180k per year, it's not a great time right now.

NJ Real Estate Market

Several factors contribute to why New Jersey residents may be less likely to own a home compared to residents in other states. As a matter of fact, there are seven.

1.) High Cost of Living: New Jersey consistently ranks among the top states in terms of cost of living. This includes high housing costs, property taxes, and other expenses. The high cost of living can make it difficult for residents to save up for a down payment or afford monthly mortgage payments.

2.) Property Taxes: NJ has some of the highest property taxes in the nation. This can make homeownership less attractive or feasible for many residents, especially when combined with the already high housing prices.

3.) Limited Affordable Housing: In some areas, there's a shortage of affordable housing options. The housing market may be dominated by expensive single-family homes or luxury apartments, leaving few options for those with lower incomes.

4.) Population Density: NJ is one of the most densely populated states in the U.S. High population density often leads to higher property values and housing costs.

5.) Commuter Culture: Many residents of New Jersey work in nearby cities like New York City, Atlantic City, or Philadelphia. Some may prefer to rent near their workplace rather than buy a home in New Jersey due to the convenience of commuting and the high cost of living in urban centers.

6.) Student Loan Debt: Like much of the United States, student loan debt is a significant financial burden for many residents of New Jersey. High levels of student debt can make it challenging to save for a down payment or qualify for a mortgage.

7.) Interest Rates: With interest rates over 7%, people are facing $2500-$3500 per month for a home that's barely 2000 square feet. It's hard out there, right now!

That's why it's no surprise that New Jersey has one of the lowest rates of homeownership in the entire nation. Out of all the states in America, New Jersey ranks as the #4 WORST homeownership rate.

According to ThisOldHouse.com, New Jersey’s homeownership rate is 8% less than the national average of 65.7%. The only way our ranking will improve is if inflation evens out, interest rates drop, and everybody magically starts affording life again.

Will we ever see that happen again? Who knows. We can always hope, right?

If you're one of the lucky ones that actually can afford a house right now, here's where the experts say you should look in NJ:

If you want to move to South Jersey, make sure you don't do ANY of these things: