September 2024 New Jersey Housing Update: Why Homeownership Is Creating a Bigger Divide

📊 New Jersey Real Estate Market Update - September 2024

🏡 Market Insights:

• Median Sales Price: Single-family homes are up 5.6% year-over-year, now at $591,489.
• Days on Market: Properties are selling at a steady rate, averaging 31 days.
• Closed Sales: The market saw a 6.3% increase in closed sales, totaling 5,885 single-family homes.

🏘️ Inventory:

• Homes for Sale: Inventory is slightly down by 3.6%, but opportunities are still available with 14,896 homes on the market.
• Months Supply: There’s a balanced supply, holding at 3.2 months.

🚀 Townhouse/Condo Market:

• Median Sales Price: Up 6.2%, now at $430,000.
• Closed Sales: Increased by 9.1% with 1,891 units sold.

🗣️ My Commentary:

While these numbers show a strong housing market, the reality of home affordability is deeply troubling. For example, the monthly PITI (Principal, Interest, Taxes, and Insurance) payment on a median-priced home in New Jersey at $591,489 with a 5% down FHA loan, 6.125% interest, and $15,000 in annual property taxes, comes out to $4,814.25 per month.

When you compare that to the median household income in New Jersey of $101,133, you realize that over 57% of gross income would go just to housing expenses. That's simply unsustainable for most families.

What’s even more concerning is how this trend is affecting young people. Unless you land an extraordinary job or your parents have the wealth and assets to help you, your opportunities are drastically limited. The difference between families who have generational wealth and those who don’t is stark. Families with assets can pass on equity, help with down payments, and set their kids up for success. Meanwhile, those without these resources are left to struggle, with fewer opportunities to buy homes or build wealth. This divide is heartbreaking.

We’re supposed to be giving the next generation more opportunities, but it feels like they have less. And as much as these market trends benefit me personally, I can’t help but be deeply concerned for society and for my fellow countrymen, especially the younger generation. Their future doesn’t look bright, and it truly breaks my heart.

This is the harsh reality of today’s housing market, where the divide between those who own and those who don’t continues to grow. And while it might look good on paper for some of us, it’s hard to feel positive knowing that the next generation is facing fewer and fewer opportunities.

We’re at a critical moment, and it’s important to recognize how these trends are shaping the future. 💼🏡

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