Soaring Home Values Bring Wealth—and Unexpected Costs—for NJ Homeowners
Across New Jersey and the nation, homeowners are sitting on a mountain of real estate wealth—$35 trillion, to be exact. But for many, that financial windfall is coming with a hidden price tag: rising property taxes, higher insurance premiums, and a growing sense that homeownership doesn’t feel quite as secure as it once did.
Just ask homeowners like Nikole Flores and Rocco Savage, who bought their 1,800-square-foot home in sunny Miami Shores, Florida, for $875,000 back in 2021. After a real estate boom, plus upgrades like a pool and a stylish pergola, their home is now estimated to be worth $1.35 million. On paper, their wealth grew by more than half a million dollars—without even moving.
But with that gain came an unpleasant surprise: their property taxes surged by over 50%, climbing to nearly $21,000 per year. While they’re still able to cover their bills, the increase has forced them to cut back on things like travel and dining out.
“If property taxes continue to rise,” said Savage, “even if I pay off my house, I feel like I’m still paying rent.”
It’s a feeling that’s growing more common here in New Jersey, where real estate values have climbed dramatically since 2020, especially in suburban areas. According to recent data, home equity in the U.S. has jumped nearly 80% since early 2020—up from $19.5 trillion to $35 trillion—largely due to skyrocketing home prices fueled by low interest rates and strong demand.
The average American homeowner with a mortgage now holds around $313,000 in home equity, according to ICE Mortgage Technology. But while these numbers look great on paper, the reality is more complicated. That equity isn’t cash unless you sell, and in the meantime, reassessments, insurance hikes, and maintenance costs are stretching many household budgets.
In New Jersey, where property taxes are among the highest in the country, the pressure is especially intense. Homeowners in towns like Montclair, Princeton, and Maplewood have seen steep increases in their assessments, forcing difficult conversations around refinancing, downsizing, or simply adjusting their lifestyles.
And yet, many still check their home’s estimated value daily—thanks to tools like Zillow’s Zestimate—as if it’s a stock ticker. That equity is both a source of pride and anxiety.
So, while New Jersey residents may be wealthier on paper, many are left asking: What’s it really worth if it costs you your peace of mind?
