The New Jersey real estate market is navigating a period of adjustment after the extraordinary boom of the pandemic years, showing signs of moderation while remaining competitive for buyers and investors. Home prices continue to climb, but at a more measured pace than the double-digit surges of recent years. As of August 2025, the median home price across the state reached approximately $584,700, reflecting a 5.8% increase from the previous year, indicating healthier, more sustainable growth. With more listings entering the market — up 10.6% year-over-year — buyers are finding slightly greater negotiating power and more options, particularly in areas outside the high-demand northern counties.
The New Jersey housing market is now generally considered a “transitioning seller’s market.” Properties continue to sell relatively quickly, with a median of 43 days on the market, and many still fetch prices above their initial listing. Despite this, affordability challenges remain a persistent concern. Mortgage rates have hovered between 6.5% and 7% in late 2025, making it increasingly difficult for first-time buyers to enter the market. The national median age of first-time homebuyers has reached 40, reflecting the financial strain of saving for down payments in high-cost markets.
Regional disparities continue to shape the real estate landscape. Northern counties with convenient access to New York City, including Bergen and Union, maintain elevated median home prices — Bergen County alone reached $825,000. In contrast, southern counties such as Salem and Cumberland offer more affordable options, appealing to buyers seeking value outside of the urban corridor.
Commercial and multifamily development activity is also gaining momentum, with leaders in the sector closely monitoring the priorities of Governor-elect Mikie Sherrill’s administration. Sherrill has signaled a focus on increasing housing supply and addressing affordability through new construction, with particular emphasis on multifamily units and transit-oriented projects. Several major developments are underway across the state. In Jersey City’s Liberty Harbor neighborhood, two new high-rises are set to redefine the skyline while blending modern architectural trends with the city’s historic streetscape.
The first of these, located at 251 Grand Street, is a 12-story mixed-use building currently rising on a former surface parking lot. Designed by MHS Architecture, the project features 106 residential units, including studios, one- and two-bedroom apartments, and two three-bedroom units. While the building does not include off-street parking or affordable housing, it will offer 53 bicycle spots, a 2,313-square-foot fitness center, and a rooftop terrace with an outdoor pool and lounge. The ground floor will feature 2,104 square feet of commercial space with a mezzanine, bringing new retail and service options to the neighborhood. LEED certification and a dry flood barrier system highlight the project’s commitment to sustainable and resilient design.
A short distance away, 250 Morris Boulevard is preparing to rise just over 196 feet, offering 300 residential units, ranging from studios to two-bedroom apartments. This development will activate the streetscape with multiple ground-floor tenants, including a two-story educational space for a future Montessori school, as well as separate retail storefronts along Grove Street. Amenities in the building are extensive, featuring a covered courtyard, pool, basketball court, and a rooftop fitness area with an indoor lounge and putting green. While only 18 parking spaces will be provided on-site, the design emphasizes pedestrian-friendly access and community-oriented open spaces. Both projects are being led by the Mocco family, longtime developers behind Liberty Harbor, though estimated completion dates have not yet been announced.
Beyond Jersey City, commercial real estate remains active, particularly in transit hubs and urban centers. Projects in Paterson and Secaucus have received significant tax credits from the New Jersey Economic Development Authority (NJEDA), signaling continued investment in both residential and commercial infrastructure. Analysts predict sustained demand for multifamily units and smaller warehouse spaces throughout 2025 and into 2026, driven in part by expectations of modest declines in interest rates and pent-up housing demand. A recent report by PwC and the Urban Land Institute ranked Jersey City as the second hottest real estate market in the U.S., highlighting Northern New Jersey as a key area for investors.
Despite these growth opportunities, the state’s real estate sector must also navigate legal and regulatory considerations, from zoning approvals to environmental compliance. Developers and prospective buyers alike are paying close attention to evolving state policies that impact housing, construction, and commercial activity, making awareness of local legal frameworks essential for success. For ongoing updates on legal developments, court decisions, and regulatory actions affecting New Jersey’s real estate market, visit Explore New Jersey’s Real Estate section.
The combination of moderated residential growth, active commercial development, and high-profile urban projects like 251 Grand Street and 250 Morris Boulevard illustrates a New Jersey real estate market that is evolving while remaining a central hub for investment, innovation, and housing opportunities. Buyers, investors, and developers are watching closely as the state balances affordability, urban development, and regulatory oversight in the years ahead.
New Jersey’s First-Time Homebuyers Face Steepest Hurdles Yet as Market Shifts Toward Older Buyers
The New Jersey housing market, long characterized by competitive pricing and high demand, is seeing a pronounced shift in who is actually able to purchase homes. Across the state, first-time buyers—the traditional backbone of the housing market—are increasingly absent, as rising home prices, elevated mortgage rates, and limited inventory continue to price younger buyers out of the market. The trend is reshaping the state’s real estate landscape and may have long-term implications for wealth-building and community demographics.
For decades, first-time homebuyers in the United States typically entered the market in their late 20s or early 30s. In 1981, the National Association of Realtors (NAR) reported the median age of a first-time buyer as 29, a figure that steadily crept into the low 30s over the next four decades. By 2021, however, that age had jumped to 36, signaling a significant delay in the milestone of homeownership. In New Jersey, where median home prices are among the highest in the nation, this delay is even more pronounced.
Local data reflects the same national trend: first-time buyers now make up a fraction of transactions in New Jersey, with many priced out of markets like Bergen, Morris, and Union counties, where median home prices exceed $800,000. In more affordable areas like Salem and Cumberland counties, younger buyers may find entry-level homes within reach, yet the supply of suitable properties remains limited. The consequence is that older, more financially established buyers—often Generation X and baby boomers—dominate the market. These buyers are better equipped to absorb higher interest rates, make larger down payments, and compete in bidding wars, leaving younger adults largely on the sidelines.
Economic factors, combined with lingering pandemic-related pressures, have intensified the challenge for first-time buyers. Mortgage rates, which soared past 7% in 2025, and high property taxes across New Jersey make monthly payments for entry-level homes comparable to—or in some cases exceeding—those of more expensive residences bought by seasoned buyers. Compounding this issue is the limited pace of new construction; while some urban areas such as Jersey City and Hoboken have seen a boom in multifamily developments, much of the new stock caters to higher-end buyers, leaving little available for those seeking starter homes.
The consequences of delayed homeownership extend beyond personal finance. Studies show that homeownership remains a primary avenue for building intergenerational wealth. For New Jersey’s younger adults, being shut out of the market means fewer opportunities to accumulate equity, delayed family formation, and a reevaluation of what constitutes a realistic “starter home.” Many first-time buyers are opting for rentals longer, while some are considering relocation to more affordable states, a trend that could influence New Jersey’s demographic and economic patterns for years to come.
Industry experts emphasize that addressing these challenges requires a multi-pronged approach. Expanding affordable housing initiatives, incentivizing new construction for entry-level units, and moderating property taxes are among the strategies being explored. Governor-elect Mikie Sherrill has indicated a commitment to improving housing accessibility, including measures aimed at reducing the affordability gap for younger buyers and expanding multifamily development to meet demand.
For now, the face of New Jersey’s housing market is increasingly “geriatric,” dominated by older buyers able to weather the current economic pressures. First-time buyers, once the most dynamic segment of the market, are seeing the door to homeownership close, forcing many to recalibrate their expectations and consider alternative pathways to building wealth. The challenge for policymakers, developers, and communities alike is finding ways to reopen that door before a generation is permanently locked out.
More details on housing trends, developments, and affordability programs across the state can be explored at Explore New Jersey Real Estate, offering resources for buyers, sellers, and those seeking to understand the evolving market in the Garden State.
The current landscape makes it clear that New Jersey’s housing market is in transition. Without targeted interventions, the divide between older, established buyers and younger first-time buyers is likely to widen, fundamentally reshaping the state’s real estate ecosystem for years to come.
