NYC’s Downtown Luxury Boom Ripples Across to New Jersey’s Real Estate Market
By Anthony DiMaio
With a recent Wall Street Journal article citing the new residential boom in downtown real estate, we are seeing a seismic shift rippling across the Hudson River, fundamentally reshaping New Jersey’s residential landscape. As finance and tech firms migrate downtown—alongside new retail, parks, and cultural institutions—and luxury condominiums below 14th Street command prices rivaling Manhattan’s most expensive uptown enclaves, New Jersey is experiencing unprecedented demand from high-net-worth buyers seeking value and space outside the city.
The numbers tell a compelling story of Manhattan’s downtown transformation. There were more $30 million-plus home sales below 34th Street in the past five years than in the previous decade, according to Corcoran Sunshine Marketing Group. Since 2023, the area has seen more than $1 billion worth of home sales above $20 million. This concentration of wealth and the resulting inventory constraints in Manhattan are driving sophisticated buyers to explore New Jersey’s luxury markets with renewed interest.
New Jersey’s luxury residential market has responded dramatically to this shift. In Bergen County, median home prices have increased 8.3% year-over-year, with luxury properties above $2 million seeing particularly strong appreciation. Hudson County, benefiting from its direct proximity to downtown Manhattan, has experienced even more dramatic growth, with waterfront properties in towns like Hoboken, Jersey City, and Weehawken commanding premium prices that would have been unthinkable just five years ago. The median home price in Hudson County reached $685,000 in 2024, representing a 12% increase from the previous year.
The Tech Migration
The migration pattern is particularly pronounced among tech and finance professionals who have relocated their offices downtown. Google’s February opening of its newest Manhattan office space at the old St. John’s Terminal on Washington Street in Hudson Square exemplifies this trend, bringing thousands of high-earning employees who are now considering New Jersey’s luxury offerings. These buyers are drawn to New Jersey’s combination of lower property taxes relative to Manhattan, significantly more space per dollar, and convenient transit access to their downtown offices.
Essex County has emerged as another beneficiary of this trend, with towns like Millburn, Short Hills, and Summit seeing increased interest from Manhattan professionals. Essex County’s inventory stands at 617, which is only 2.2 months-supply, roughly one-third of the inventory back in 2018.
Overall, the county’s median home price has risen 6.8% year-over-year, with luxury properties in premier school districts commanding particular premiums. The appeal lies not just in the immediate space and value proposition, but in the lifestyle upgrade that New Jersey offers: private parking, outdoor space, and family-friendly amenities that are increasingly difficult to find in Manhattan’s constrained market.