As of September 19, 2025, New Jersey’s real estate market continues to deliver headlines that reflect both opportunity and challenge for buyers, sellers, and developers. From new affordable housing rulings to persistent price growth, the state’s property market remains one of the most closely watched in the region.
In Hoboken, a recent court decision will now require developers of three luxury projects to set aside units for affordable housing, enforcing a rule that had existed since 1988 but was not consistently followed. The ruling underscores a growing emphasis on ensuring accessibility in communities often defined by rising prices and limited affordability. In Burlington County, a new affordable housing lottery has opened in Hainesport, offering 72 income-restricted apartments with an application deadline next month. These steps are part of a broader statewide effort, supported by the Murphy administration, to expand housing options while also incentivizing municipalities to comply with affordable housing obligations.
Market data shows that New Jersey’s property values continue to rise at a pace faster than the national average. In July 2025, the median sales price across all property types climbed 4.7 percent year-over-year. Single-family homes lead the charge, with steady demand pushing prices higher, though buyers are beginning to show more caution due to affordability concerns. Condominiums and townhouses are seeing more moderate growth, but increased inventory is giving prospective buyers more leverage. Adult communities have experienced the sharpest rise in available options, offering downsizing seniors and retirees more opportunities than in previous years.
While prices rise, inventory is also expanding. Homes for sale in July were up 12.7 percent compared to the previous summer, providing relief to a market that had struggled with shortages. Even so, sales activity has slowed, and the average time a home spends on the market has increased to 43 days as of August. Buyers appear more hesitant, balancing their desire to purchase with the reality of stretched budgets and higher mortgage costs.
The ripple effects of New York City’s shifting real estate market are also being felt across New Jersey. A surge of homebuyers and businesses relocating across the Hudson has been described by market experts as a “gold rush.” Communities in northern New Jersey are absorbing much of this activity, with demand spilling into Hudson, Bergen, and Essex counties. The influx is expected to continue shaping both residential and commercial markets through the remainder of 2025.
Commercial real estate and infrastructure projects are also playing a role in shaping the state’s economic outlook. The Hudson County Economic Development Corporation recently launched a video campaign spotlighting local businesses, aiming to draw investment and highlight opportunities for entrepreneurs. Meanwhile, New Jersey American Water is investing $250,000 in Highlands to replace old pipes and remove lead or galvanized service lines, part of a larger push for infrastructure upgrades that will support long-term growth. Experts also predict that the state’s industrial real estate market, which underwent a transitional period in 2024, will see renewed leasing activity and capital deployment this year.
The long-term forecast for New Jersey real estate carries a mix of optimism and caution. Analysts anticipate that potential federal interest rate cuts could bring more liquidity into the market, fueling sales and new construction. At the same time, affordability remains the greatest challenge. Even with more inventory on the market, many buyers are priced out of their preferred areas or forced to wait longer to make a purchase decision. Developers, policymakers, and buyers alike are adjusting to a landscape that is dynamic and often unpredictable.
Redevelopment projects are adding another layer to the market’s evolution. In Haddon Heights, the former Jefferson Bank building has been transformed into apartments, welcoming its first tenants this month. Mayor Zach Houck noted that the project fits the needs of young professionals not yet ready for ownership as well as seniors seeking to downsize. At the same time, new real estate services are launching, such as Your Gold Key Solution, which enters the market promising transparency and results for buyers, sellers, and investors.
Mortgage rates continue to be a point of frustration. While the Federal Reserve announced a rate cut, the underlying bond market reaction has led to rates climbing higher instead of easing. The volatility underscores the uncertainty surrounding lending and borrowing, and it highlights why both buyers and sellers remain cautious even as inventory grows.
The months ahead will be critical for New Jersey real estate as policy, interest rates, and demand all converge to shape the state’s housing and commercial markets. With ongoing infrastructure upgrades, expanding redevelopment projects, and an influx of buyers from across the Hudson, New Jersey remains one of the most competitive real estate landscapes in the country. For more insights and coverage on the state’s real estate market, visit New Jersey Real Estate.
