Jersey City is a vibrant, multicultural community with extensive green space and unbeatable proximity to New York City. These factors continue to attract real estate investors from around the world, and especially compared with the higher prices of NYC, Jersey City is a smart long or short-term buy.
If you're thinking of making a move to Jersey City within the next few months, it's important to understand what to expect when entering the real estate market. And while no one can predict the future, staying as informed as possible can save you a great deal of time, money, and stress.
Consider the following information while planning a move to New Jersey. We invite you to reach out to our top-ranking team at The Sutherlin Group for expert insights and personalized advice. Get in touch with Diana Sutherlin to start the conversation.
Current trends in New Jersey real estate look at comparable sales within the last six months to five years in order to provide an educated guess of how the market is likely to change over the next 6-12 months. Trend data relevance varies based on who is investigating the market: resident buyers, property investors, or property sellers. When looking at data from January 2022, the Jersey City Heights real estate market is at a sharp high for the first time since September 2020, which continues the overall upward trend in median list price since March 2017. The higher list price bodes well for sellers aiming to part with property in 2022 and shows a trend of positive return on investment for new buyers.
Buying as a residence
If you're thinking about buying a primary residence in Jersey City, there are a few trends you need to know. The first is that the market is hot, and the prices of houses for sale in Jersey City are on the rise. If you want to get the best deal, it's important to be prepared and act fast, since homes are staying on the market for the shortest median days since April 2021.
The March 2021 median listing price for Jersey City houses for sale (~$569,000) increased to $659,000 by January 2022. Jersey City Heights real estate, in particular, has continued an overall upward trend, though prices do tend to fluctuate from month to month—with the highest spikes typically seen in the summer months. The number of houses for sale in Jersey City has been on a downward trend since July 2021, though inventory still remains higher than the number of listings seen in 2020. The number of houses for sale in Jersey City in January and February hovered around 430, which is down from 711 houses in December 2021 and the highest peak in five years of 975 houses in July 2021. Although trends indicate the number of homes for sale in Jersey City is likely to increase again in the summer months, prices are on track to rise again as well. Thus, buyers may find it more cost-effective to purchase before the summer months.
When considering a purchase, buyers should note that the majority of estates available in the Jersey City Heights real estate market date back to at least 1939, if not further. These properties account for over 35% of homes in Jersey City, followed by nearly 23% built between the years 1940-1969. Buyers should also be aware that half of the residential real estate in Jersey City is apartment complexes, followed by approximately 35% small apartment buildings. Single-family homes and townhomes each account for approximately 7% of Jersey City Heights real estate. About 35% of Jersey City properties have two bedrooms, 27% have one bedroom, 22% have three bedrooms, and properties with four, five, or no bedrooms account for 10% of the total inventory of homes.
When ready to discuss buying Jersey City Heights real estate, reach out to an experience, local realtor like Diana for assistance.
Buying as an investment
Buyers seeking to invest in Jersey City Heights real estate can expect to see a positive return on investment. Rentals make up 71% of households in Jersey City, so there is a solid opportunity to earn income from renting out your Jersey City Heights real estate. Median rental prices are currently lower than they were five years ago, but they are 1-1.2% higher than they were in January 2021.
Studio apartments had a median rent of $2222 in January 2017, $1662 in January 2021, and $1840 in January 2022. While rent is still lower than it was in 2017, there has been a 1.1% increase in the past year.
One-bedroom rentals had a median monthly rent of $2435 in January 2017, $1801 in January 2021, and $2055 in January 2022, which shows a 1.1% increase in the past year.
Two-bedroom rentals clocked in at $2675 in January 2017, $1849 in January 2021, and $2139 in January of this year. This shows an increase of 1.2% in median rental price over one year.
Three-bedroom rentals had a median monthly rent of $2537 in January 2017, $1968 in January 2021, and $2200 in January 2022, which shows a 1.1% increase in median rental price over one year.
Four-bedroom rentals clocked in at $2864 in January 2017, $2200 in January 2021, and $2239 in January 2022. This shows an increase of 1.0% in median rental price over one year.
Buyers aiming to offer their new houses for sale in Jersey City as temporary residences via a service like Airbnb can expect to bring in $147 nightly per person on average. Thus, you can bring in $53,655 annually if you’re able to host at least one guest every night of the year or 365 total guests per year. As of February 2022, Airbnb lists over 300 openings for vacation rentals in Jersey City, which attests to the area’s popularity as a tourist location. When ready to discuss investment in the Jersey City Heights real estate market, reach out to our team for guidance. To see what’s on the market, browse our Featured Listings.
Homes traditionally sell for higher amounts when listed with an agent compared to those listed independently. Looking at the median list price for houses for sale in Jersey City per month from March 2017 to January 2022, prices have stayed consistently far above 2017 trends since June 2019, with tens of thousands of dollars in increases each year.
The upward spikes in the summer months are expected to continue in 2022, so sellers will likely see the highest successful sales prices from May through September. The largest spike in the past two years occurred in July through of September 2020, when listing price medians hovered around $665,000. January 2022 saw a return to that recent high spike with a median listing price of $659,000. Barring a few outliers, from July to December 2021 homes stayed on the market for a median of below 100 days. Sellers can expect to sell their Jersey City real estate in three months or less, based on trends over the last five years.