While the national housing market has largely stalled, New Jersey is running laps around the other 49.
Home prices across the Garden State climbed nearly 6% in February compared to last year—the largest gain of any state in the nation, according to new data from Cotality, a property analytics firm.
The national average over that same stretch? Half a percent. New Jersey didn’t just beat the competition. It demolished it.
Newark Leads the Charge
The statewide surge is striking on its own, but zoom into Newark and the numbers become even more remarkable.
Among the 100 largest metro areas in the United States, Newark recorded the steepest year-over-year price jump in the country—a staggering 6.7% gain in February. That’s not a typo. New Jersey’s largest city is outperforming every major metro in the nation on home price growth, leaving cities like New York, Los Angeles, and Chicago in the dust.
Why New Jersey?
The answer isn’t complicated, but it is structural.
New Jersey has become a landing pad for workers priced out of Manhattan who still need to be within reach of the city. The state’s dense corridor of finance, fintech, pharmaceutical, and biotech firms has kept demand rising even as buyers elsewhere pump the brakes.
New Jersey’s high-wage employment base is a key driver. Meanwhile, 13 other states recorded price declines in February, including Florida (2% drop) and D.C. (3%).
Your ZIP Code Is Probably Worth More
At the ZIP code level, the gains are spread wide.
Using Zillow data, a new NJ.com analysis takes a closer look. Of the 546 New Jersey ZIP codes analyzed by Zillow, 504 saw home values increase in February. That’s more than 92%.
Nearly 40% of homes sold above asking price in February according to the report.
The Catch
New Jersey still holds an affordability advantage over New York, but it’s narrowing fast.
If mortgage rates stay elevated heading into summer, some of that demand could stall before it converts into closed deals. Inventory remains well below pre-pandemic levels statewide. Less supply means elevated prices, but it’s also keeping would-be sellers on the sidelines.
For now, New Jersey homeowners are sitting on more value than they were a year ago. In most cases, significantly more. But for those looking to buy, the prices are steeper than ever.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.