Understanding the Garden State’s Affordability Challenge
The national housing shortage has reached a critical point, and New Jersey homebuyers and renters are feeling the pressure more than most. Recent Census data reveals that America’s housing deficit expanded by 159,000 homes in 2023, contributing to an all-time high shortage of 4.7 million units nationwide. For New Jersey residents navigating one of the nation’s most expensive housing markets, these statistics translate into very real challenges.
The Numbers Behind New Jersey’s Housing Crunch
While roughly 1.4 million new homes were added to the national housing stock in 2023, this growth couldn’t keep pace with the 1.8 million newly formed families seeking their own homes. In New Jersey, where median home prices consistently rank among the highest in the nation, this imbalance hits particularly hard.
The Garden State’s proximity to New York City and Philadelphia creates unique pressures on the housing market. Young professionals and families drawn to New Jersey’s suburban communities, excellent schools, and transportation access find themselves competing for limited inventory in an already constrained market.
Why New Jersey Buyers Are Struggling
The affordability crisis extends beyond just high prices. A family earning the median household income could afford to buy a typical home in 2019, but today they would need a $17,000 raise to qualify for that same purchase. In New Jersey, where property taxes add another layer of expense, the financial burden is even more pronounced.
For first-time homebuyers in New Jersey, the combination of elevated mortgage rates and premium home prices creates a perfect storm greatly impeding their efforts. Many find themselves priced out of desirable communities or forced to consider longer commutes to find affordable options.
The Roommate Reality
Millennials represent the largest generation of people sharing homes with non-relatives, making up 38% of families “doubling up” in 2023. In New Jersey’s expensive rental markets from Jersey City to Princeton, this trend is particularly visible. Young professionals often share apartments or houses not by choice, but out of necessity.
Across the nation, 8.1 million families shared their homes with people who weren’t related to them, while 3.4 million homes sat vacant and available for rent or sale. This mismatch highlights the core issue: it’s not just about having enough housing units but having affordable ones in the right locations.