A new analysis from New Jersey real estate expert Robert Dekanski of Re/Max looks to answer a question on every NJ renter’s mind: how much do I have to make to afford a home in New Jersey?
The results are blunt, to say the least.
Dekanski’s 2025 breakdown found that the average household must earn $152,186 annually to afford a typical New Jersey home. If that sounds expensive to you, you’re right. That number makes NJ the ninth most expensive place to purchase a house in the nation.
It’s not the same in every corner of New Jersey—location within the state comes with large swings in price. The same exact house may require up to $50,000 more in income than its South Jersey counterpart. Property taxes, the highest in America, can add a major burden to those in the market, often increasing monthly housing costs by 15 to 20 percent.
Dekanski’s report shows that getting approved for a mortgage in New Jersey isn’t just about the list price. Taxes, insurance and a higher general cost-of-living push affordability to its limit.
North Jersey: Where Six Figures Isn’t Optional
North Jersey is a massive economic hub within the NYC-metro and anyone hoping to live within commuting distance of Manhattan should expect steeper income requirements.
In Bergen County, the median home price sits around $790,000, requiring roughly $180,000 to $200,000 in annual income to afford. Morris County buyers face salary expectations of $155,000 to $170,000 for a median home price of around $723,000. Somerset County’s median of $680,000 translates to a needed income of about $145,000 to $160,000. Essex County hovers between $140,000 and $155,000 for a $705,000 median house. All things considered, Union County comes in on the low end, but still requires roughly $135,000 to $150,000 to land a home priced somewhere around $695,000.
If these numbers sound high, that’s because they are. In these North Jersey counties, home buyers pay an inflated premium in exchange for NYC proximity and high property taxes keep monthly payments elevated long after closing day.
Central Jersey: Pricey, but Manageable
Does Central Jersey exist? As far as home price breakdowns go, yes.
Moving south within the state brings some financial breathing room, but prices are still significantly higher than average when compared to the rest of the country.
Because of its beach access, Monmouth County remains expensive. Monmouth County also remains connected to NYC with commuter options, further driving price. Buyers in the Shore county need between $165,000 and $180,000 for a median home price of $710,000. Middlesex County delivers a better balance: a median price of roughly $555,000 and an income requirement slightly lower, around $130,000 to $145,000. Amenities, job centers and transit access keep demand strong, but your dollar should still go much further in Central Jersey than in the North.
South Jersey: Where Buyers Still Have a Chance
Not all hope is lost for first-time buyers in New Jersey, South Jersey is where those eyeing a home can regain some hope.
With a median home price around $270,000, Cumberland County requires only $55,000 to $65,000 in annual income to afford a home. Salem County is similar, with $58,000 to $68,000 needed for a median $265,000 home. Warren County offers a similar story—$425,000 median home price requiring about $85,000 to $95,000 in income. However, the lower costs come with a tradeoff: these areas of New Jersey offer fewer major employers and longer commuting times.
Reality Check: New Jersey is Expenive
If one clear line can be drawn from Dekanski’s report, it’s this: income decides geography.
A salary south of $100,000 (no pun intended), means that South Jersey provides the most realistic shot at owning a home. With $130,000 to $150,000 to work with, Central Jersey becomes an option; however, the dollar still stretches thin. Anyone earning $200,000 or more can consider most counties within the state, though property tax differences can flip monthly costs, making North Jersey financially stressful even for high earners.
Even with inventory rising, major price declines remain unlikely. Demand stays strong near transit, top schools and major job corridors, making New Jersey home prices unlikely to drop any time soon.
Dekanski’s analysis removes the guesswork: in 2025, the path to buying a home in New Jersey starts with understanding what your salary can truly support.
Know your number before you start shopping.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.