The financial pressure from high property taxes appears to be taking its toll on Garden State homeowners. A recent study by Property Shark revealed a troubling 23% year-over-year increase in first-time foreclosures across the 12 New Jersey counties in the metropolitan New York City area during the second quarter of 2025.
This increase comes after nine quarters of nearly consecutive declines, suggesting that the combination of high property taxes and other economic pressures has pushed many homeowners past their breaking point. The total number of first-time foreclosures in these counties reached 804, representing a significant reversal of previous trends.
Somerset County experienced the sharpest rise in foreclosures, with a 54% year-over-year increase, though it maintained the third-smallest total number at 37 cases. Other counties showing substantial increases included Morris County (50% increase), Hudson County (49% increase), and Monmouth County (44% increase).
The foreclosure data reveals the geographic spread of the crisis:
- Essex County led with 139 foreclosures (28% increase)
- Ocean County followed with 118 cases (13% increase)
- Bergen County recorded 109 foreclosures (30% increase)
- Only Union County (-8%) and Passaic County (-2%) showed declines
Particularly concerning is Hunterdon County, which despite having the lowest number of first-time foreclosures at 21, reached a three-year high, indicating that even traditionally stable areas are feeling the pressure.
Limited Relief Options
While some states are exploring dramatic property tax reforms – Florida Governor Ron DeSantis has proposed eliminating property taxes entirely, which would make Florida the only state with neither income nor property taxes – New Jersey residents have few immediate relief options.
However, homeowners may not realize they can challenge their property assessments. According to Berner’s research, over 40% of properties nationwide could save at least $100 by protesting their assessed value, with median savings exceeding $500. For New Jersey homeowners facing the nation’s highest bills, successful assessment appeals could provide meaningful relief.
The Broader Impact
The combination of crushing property tax burden and rising foreclosures threatens to undermine New Jersey’s housing market stability. As real estate expert Katrina Campins noted, property taxes are increasingly “robbing Americans of home ownership.” This is particularly acute in New Jersey, where the tax burden can represent a significant portion of a family’s monthly housing costs.
The situation creates a vicious cycle: high property taxes make homeownership less affordable, potentially depressing demand and home values, which could ultimately affect the tax base that funds essential local services like schools, infrastructure, and public safety.
For New Jersey policymakers, the data presents a clear challenge. The state’s reliance on property taxes to fund local government services has created a system where residents pay the highest rates in the nation while simultaneously facing increased risk of foreclosure. Without meaningful reform, the Garden State risks continued population loss to lower-tax states and further destabilization of its housing market.
The path forward will require careful balancing of the need for adequate public funding with the reality that current property tax levels are pushing homeowners to their financial limits – and in an increasing number of cases, beyond them.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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