New Jersey Real Estate December 5, 2013

With Manhattan Homes on the Rise, More People are Looking to Buy in the NJ Suburbs

For the first time in decades, U.S. cities are growing faster than the suburbs. And, it’s no surprise why. With a tough economy and even tougher job market, it makes practical and financial sense to stay close to the city where job opportunities are more plentiful. But, just because this idea may seem great in theory doesn’t necessarily mean it makes sense for all people. Living in a city like NYC is costly, and fortunately, it’s not the only smart choice. Thanks to the surrounding suburbs of New Jersey, it may be the best financial choice to live outside the city, getting the most for your money.

According to a recent survey by Miller Samuel, it’s becoming more difficult to purchase a non-luxury home. (Non-luxury homes are those that cost less than $3 million.) The number of non-luxury homes has dropped by more than 36 percent, leaving people with far less to choose from. For instance, the average one-bedroom apartment in Manhattan is $1.35 million, and the average two-bedroom apartment is $2.63 million. Basically, any apartment with three bedrooms or attractive features will be included in the luxury market, which accounts for the majority of Manhattan homes.

There is a better option, and that is living in New Jersey. Consider that the median price of a single family home with all the bells and whistles is $360,000 in New Jersey. And, with counties like Essex and Hudson, you can live just 30 minutes from NYC, making it possible to take advantage of job opportunities in the city. Even though the cities are seeing growth, New Jersey counties are still experiencing steady growth because of their accessible location to New York City.

In addition, the average one-bedroom Manhattan apartment has gone up 7.8 percent from year-to-year, while the average two-bedroom has gone up 10 percent. New Jersey properties are climbing as well, but as with any city-to-suburb move, you can get so much more for your money. Those looking to relocate may find that moving to the suburbs of New Jersey makes both financial and practical sense, and the commute to work is very doable. It’s definitely something worth considering, especially since now is still a great time to invest in a home thanks to low interest rates and housing prices.