New Jersey, a state known for Atlantic City and the reality show The Jersey Shore, is gaining recognition for its high prices and desirability. According to Realtor.com economist Hannah Jones, the median sale price in New Jersey was higher than in New York in 2023. The state’s recent surge in demand has led to a 48.4% price growth between 2019 and 2023, outpacing New York’s 37.6%.
The top five most expensive zip codes in New Jersey belong to Deal, Alpine, Mine Hill Township, Sea Girt, and Mantoloking, with median sale prices ranging from $2.3 million to $6.5 million. This surge in prices is not just due to proximity to New York City, but also the appeal of New Jersey’s quality of life, schools, and commuter-friendly locations.
The lack of inventory in desirable areas is also contributing to the high prices. Homeowners who locked in low mortgage rates during the pandemic are reluctant to sell, as they would have to downsize or pay higher taxes on a smaller property if they were to move.
Real estate advisor Allan DeGuzman notes that interest in New Jersey properties from New Yorkers started before the pandemic, with many city dwellers seeking more affordable and spacious homes across the river. He has seen homes in places like Sewell selling for up to 50% more than previous prices due to high demand and bidding wars.
Luxury areas like Alpine, Short Hills, and Chatham are popular for their excellent schools and convenient commuter options to New York City. The privacy, spaciousness, and quality of life in these areas attract residents looking for upscale living without the crowds of nearby beach towns.
Real estate agents Geoff and Lorraine Hurlbut have observed aggressive bidding behavior in the market, with some buyers going “all in” on a property to secure it. Celebrities like Eddie Murphy, Tracy Morgan, Stevie Wonder, and Britney Spears have also chosen to call Alpine home, adding to the allure of living in these upscale neighborhoods.
Despite the high prices and intense competition in New Jersey’s top towns, residents and real estate experts believe that the quality of life, spacious homes, and proximity to New York City make it worth the investment. Whether you’re looking for a beachfront estate in Deal or a spacious property in Millburn/Chatham, New Jersey offers a variety of luxurious options for those willing to pay the price.
