Best NJ cities for real estate investment
When choosing where to invest in real estate it is a good idea to check current market trends. Checking overall market expansion and contractions and real estate forecast can help you. New Jersey has been hit hard by the recession back in 2012 which caused a lot of homes to go to foreclosure. Real estate prices in NJ took a nosedive, like everywhere else in the country. But in the last 6 years, the market has been slowly recovering. We will provide you with some of the best NJ cities for real estate investment.
Combination of many foreclosed homes and rising prices of real estate is a very good thing. Rising prices are making a lot of homeowners thinking twice about selling their homes. In hopes of getting a better deal in the future, they are holding on to their homes. New Jersey is getting ready to become one of the hottest real estate markets in the country. It is expected that real estate prices are going to rise by as much a 12 percent in the next 3 years according to Forbes.
Things to have in mind before buying
Home price trends are a good insight into whether it is a good idea to invest somewhere or not. There are some other factors that you want to take into account when looking for the best NJ cities for real estate investment.
New Jersey has a history of some very harsh and sudden property tax changes. It has some of the highest property taxes in the States. Also, it doesn’t show any signs of relief for long-term homeowners. Newest tax revaluation is just the newest in the long line of changes that might be good for some people. If you are looking for a short-term real estate investment this might be good for you. Since this increase will hit long-term homeowners the hardest. But if you are looking to buy for yourself double check how much property tax you would have to pay for your new home.
Even if you have a good paying job and you are not even thinking of looking for another one, it is a good idea to take a look at the NJ job trends. It will help you determine which are the best NJ cities for real estate investment. While the recession has been especially hard of NJ, the job market has been slowly recovering ever since but still remains unequal.
The influx of new residents
Demand for homes has been increasing lately in places that are well connected to larger urban hubs like Philadelphia and New York. Many people who work in one of these cities but can’t afford to buy there instead choose to move to NJ. It gives them the opportunity to live in an urban environment with all its perks but at a lower cost. So areas that have a good connection to New York, for example, are going to see a larger increase in population and in turn higher real estate price increase.
Best NJ cities for real estate investment
With it being so close to New York, NJ is one of the main destinations for new residents that work across the state line. And therefore some of the best cities for real estate investment are located there. It is also a great place for you to relocate your business to NJ.
Jersey City is one of the best places to invest in real estate. It has seen a large growth in population and therefore property value. Most of that population comprises of people who want to move away from the overpriced New York into an urban hub that is just a short train commute away. Over 70% of residents in Jersey City are renters so there is a large potential in real estate investment.
Average real estate prices have almost tripled since 1990 and have grown 5.9% in the last year alone. Median home price in Jersey City is at about $437.000. It is expected to grow to as much as $512.000 during next year alone.
So, Jersey City remains one of the best places both for short term and long term real estate investment.
Newark is the most populous city in New Jersey and a seat of Essex County. It has many qualities in common with Jersey city. But it offers an even bigger potential for real estate market growth. With its median home price of $241.000, it’s a bit cheaper to invest. But when you take into account that just a year ago the median home price was $173.000, you can clearly see why Newark is one of the best NJ cities for real estate investment. And even better, it is expected to rise another 15% in the next year.
Same as Jersey City, it ranked among the top 25 cities in the US for growth in family home renting market. So if you are not planning a short investment renting is a good option.
Demarest is one of the New Jersey cities that has seen a good amount of growth in the real estate. It has, like most other cities, seen an astonishing amount of rising in real estate value since the recession. Even though this small borough with the population of 5000 hasn’t grown much in the past years it’s one of the premier places for renting. And it will probably remain so for quite some time. Median home price is currently at $759.000 and is expected to rise around 3% in the next year.
Great investment opportunity
New Jersey has and will remain to be one of the top spots on the east coast for real estate investment. With it being so close to much more expensive New York, people will continue to move there and rent homes. And continue commuting to work across the state line. The housing market in NJ has great potential for both resale value and renting value. So no matter if you are planning short or a long-term investment it is clear. New Jersey can deliver the results you are looking for!