New Jersey Luxury Markets Defy National Housing Slowdown
While the national housing market has cooled significantly with just 2.1% annual growth, New Jersey’s residential real estate continues to soar, with luxury properties in coastal and commuter towns seeing extraordinary price increases that outpace the broader market. Several high-end communities have posted six-figure price jumps in a single year, with top performers seeing values increase by more than $200,000 since early 2024.
According to Stacker’s analysis of Zillow Home Values Index data, Alpine tops the list of New Jersey’s fastest-appreciating markets with a staggering $259,166 increase in typical home values over the past year. The Bergen County community, where typical homes are now valued at $2.7 million, saw a 10.6% annual jump, far outpacing the national average.
Coastal Premium Intensifies
Luxury shore communities feature prominently among the fastest-growing markets. Deal, in Monmouth County, posted the second-highest dollar increase at $215,535, bringing its typical home value to $3.78 million. This represents a 6% annual increase and an astonishing 97.5% appreciation over five years, nearly doubling property values since 2020.
Longport and Avalon, both in Atlantic County, also ranked among the top performers with annual increases of $104,408 and $76,875 respectively. “The shore continues to see intense demand, particularly in the luxury segment,” said Kathy Morin, president of New Jersey Realtors. “These properties aren’t just vacation homes anymore—they’re investments that have outperformed many traditional financial assets.”
February Home Sales jump, but it doesn't end the slump.#USHousing #USHomeSales https://t.co/2Q3w8mfSWk
— Scott Jough (@ScottJoughNJ) March 21, 2025
Regional Trends Emerge
The data reveals distinct regional patterns across New Jersey’s fast-appreciating markets. Bergen County dominates the list with multiple entries including Alpine, Saddle River, and Tenafly, reflecting strong demand for luxury homes within commuting distance to Manhattan.
Monmouth County shows remarkable strength with Short Hills experiencing a $159,455 annual increase (8.4%) and a staggering five-year appreciation of 120.1%—the second-highest percentage gain behind Alpine’s 125.8% five-year growth.
In contrast to these luxury markets, statewide figures indicate broader but still impressive growth. The median sales price for single-family homes in New Jersey rose 11% to $560,000 in 2024, more than double the national increase of 4.6%.
Inventory Challenges Persist
Despite the price increases, the market remains strongly tilted toward sellers. Throughout the state, homes continue to sell above asking price, with Central Jersey counties reporting sales 4-5% above listing prices. Market time has compressed further, with statewide averages falling to just 35 days, a 5.4% decline from the previous year.
“The past year continued to push prices up with more demand on already-low inventory,” Morin noted. “But the market continues to demonstrate resilience with opportunities for buyers and sellers—and New Jersey remains in demand.”
New Jersey Luxury Markets Defy National Housing Slowdown
While the national housing market has cooled significantly with just 2.1% annual growth, New Jersey’s residential real estate continues to soar, with luxury properties in coastal and commuter towns seeing extraordinary price increases that outpace the broader market. Several high-end communities have posted six-figure price jumps in a single year, with top performers seeing values increase by more than $200,000 since early 2024.
According to Stacker’s analysis of Zillow Home Values Index data, Alpine tops the list of New Jersey’s fastest-appreciating markets with a staggering $259,166 increase in typical home values over the past year. The Bergen County community, where typical homes are now valued at $2.7 million, saw a 10.6% annual jump, far outpacing the national average.
Coastal Premium Intensifies
Luxury shore communities feature prominently among the fastest-growing markets. Deal, in Monmouth County, posted the second-highest dollar increase at $215,535, bringing its typical home value to $3.78 million. This represents a 6% annual increase and an astonishing 97.5% appreciation over five years, nearly doubling property values since 2020.
Longport and Avalon, both in Atlantic County, also ranked among the top performers with annual increases of $104,408 and $76,875 respectively. “The shore continues to see intense demand, particularly in the luxury segment,” said Kathy Morin, president of New Jersey Realtors. “These properties aren’t just vacation homes anymore—they’re investments that have outperformed many traditional financial assets.”
Regional Trends Emerge
The data reveals distinct regional patterns across New Jersey’s fast-appreciating markets. Bergen County dominates the list with multiple entries including Alpine, Saddle River, and Tenafly, reflecting strong demand for luxury homes within commuting distance to Manhattan.
Monmouth County shows remarkable strength with Short Hills experiencing a $159,455 annual increase (8.4%) and a staggering five-year appreciation of 120.1%—the second-highest percentage gain behind Alpine’s 125.8% five-year growth.
In contrast to these luxury markets, statewide figures indicate broader but still impressive growth. The median sales price for single-family homes in New Jersey rose 11% to $560,000 in 2024, more than double the national increase of 4.6%.
Inventory Challenges Persist
Despite the price increases, the market remains strongly tilted toward sellers. Throughout the state, homes continue to sell above asking price, with Central Jersey counties reporting sales 4-5% above listing prices. Market time has compressed further, with statewide averages falling to just 35 days, a 5.4% decline from the previous year.
“The past year continued to push prices up with more demand on already-low inventory,” Morin noted. “But the market continues to demonstrate resilience with opportunities for buyers and sellers—and New Jersey remains in demand.”
Metropolitan Influence
The Zillow data highlights the powerful influence of the New York metropolitan area on New Jersey real estate valuations. Among the 50 communities analyzed, 44 fall within the New York-Newark-Jersey City metropolitan statistical area, with only a handful in the Atlantic City-Hammonton or Ocean City metro regions.
The few exceptions to the New York metro dominance include coastal communities like Longport, which posted an 8.2% annual increase within the Atlantic City-Hammonton metro area, suggesting that location-specific factors can sometimes outweigh broader metropolitan trends.
Market Resilience
Real estate analysts note the remarkable resilience of New Jersey’s housing market despite challenging economic conditions including elevated mortgage rates that exceeded 7% through much of 2024. “What we’re seeing is a market that has adjusted to the higher rate environment,” said Michael Affuso, CEO of the New Jersey Bankers Association. “Buyers who need to move are proceeding despite the rates, particularly in desirable communities with limited housing stock.”
Looking forward, industry experts express cautious optimism about continued price appreciation, albeit potentially at a more moderate pace. “The fundamentals supporting these luxury markets—limited supply, desirable locations, and strong buyer demographics—remain intact,” Affuso added. “However, we may see some normalization if mortgage rates begin to ease as expected later this year.”
For current homeowners in these high-appreciation communities, the rapid equity growth represents a significant wealth effect, while prospective buyers face increasingly challenging barriers to entry in New Jersey’s most coveted locations.
This news took place on March 1, 2025.
Metropolitan Influence
The Zillow data highlights the powerful influence of the New York metropolitan area on New Jersey real estate valuations. Among the 50 communities analyzed, 44 fall within the New York-Newark-Jersey City metropolitan statistical area, with only a handful in the Atlantic City-Hammonton or Ocean City metro regions.
The few exceptions to the New York metro dominance include coastal communities like Longport, which posted an 8.2% annual increase within the Atlantic City-Hammonton metro area, suggesting that location-specific factors can sometimes outweigh broader metropolitan trends.
Market Resilience
Real estate analysts note the remarkable resilience of New Jersey’s housing market despite challenging economic conditions including elevated mortgage rates that exceeded 7% through much of 2024. “What we’re seeing is a market that has adjusted to the higher rate environment,” said Michael Affuso, CEO of the New Jersey Bankers Association. “Buyers who need to move are proceeding despite the rates, particularly in desirable communities with limited housing stock.”
Looking forward, industry experts express cautious optimism about continued price appreciation, albeit potentially at a more moderate pace. “The fundamentals supporting these luxury markets—limited supply, desirable locations, and strong buyer demographics—remain intact,” Affuso added. “However, we may see some normalization if mortgage rates begin to ease as expected later this year.”
For current homeowners in these high-appreciation communities, the rapid equity growth represents a significant wealth effect, while prospective buyers face increasingly challenging barriers to entry in New Jersey’s most coveted locations.
