New Jersey’s real estate market is experiencing an unexpected surge, driven by what agents and title professionals are calling the “Mamdani effect.” As democratic socialist Zohran Mamdani heads toward a likely victory in NYC’s November 4th mayoral election, affluent New Yorkers are increasingly looking across the Hudson River for their next home.
A Wave of New Buyers
Since Mamdani’s surprise Democratic primary win in June, title agencies throughout New Jersey—from Bergen County to Ocean County—have reported heightened activity from Manhattan-based buyers. Home sales entering contract in key markets show notable increases compared to last year, with many buyers directly citing the mayoral race as their motivation to relocate.
The concern centers on Mamdani’s ambitious housing platform: a $100 billion investment to build 200,000 rent-stabilized apartments, citywide rent freezes, and—most significantly for high earners—a new 2% tax on annual incomes over $1 million. While these policies resonate with working-class New Yorkers, they’re prompting wealthy residents to reconsider their addresses.
Where New Jersey Shines
The Garden State’s appeal is multifaceted. Unlike New York City, most New Jersey communities don’t impose a local municipal income tax—a substantial advantage for those already facing layered state and federal tax burdens. For professionals earning over $1 million annually, avoiding both NYC’s existing local income tax and Mamdani’s proposed millionaire tax makes relocation financially compelling.
Hudson County waterfront communities like Jersey City and Hoboken offer Manhattan skyline views and PATH train access. Bergen County towns such as Ridgewood, Glen Rock, and Tenafly provide quick commutes via the George Washington Bridge. Morris County’s Morristown, Madison, and Chatham deliver suburban living with NJ Transit connections to Penn Station.
Even Shore communities are benefiting. Ocean County destinations like Manasquan and Bay Head, along with Monmouth County’s Red Bank and Rumson, are attracting buyers who previously considered only Westchester or Connecticut. These areas now represent viable alternatives combining lifestyle appeal with tax advantages.
Looking Ahead
While New Jersey’s property taxes fund excellent schools and municipal services, the math increasingly favors relocation for high earners weighing their options. As one site-selection consultant noted, New Jersey offers “a regional alternative”—allowing professionals to escape the city’s tax burden without leaving the greater New York area entirely.
Whether this represents a temporary spike or sustained migration remains to be seen, but New Jersey’s title agencies and real estate professionals are clearly witnessing a significant shift in regional housing patterns.