Best Locations For New Jersey Real Estate Investment
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Although New Jersey is known for its high population density, there’s a good reason for it. The state has a diverse population that is great for up-and-coming professionals, families and retirees alike. The moderate housing prices make New Jersey real estate investment a realistic prospect, especially when compared to the neighboring areas. Of course, the return on investment depends on the location. Here are the best cities in New Jersey to invest in real estate.
New Jersey Real Estate Market Highlights
The best way to sum up New Jersey’s real estate market is that this moderate market is getting a little tighter in some ways. Much of the state’s most-populous cities sit in the shadow of New York City, which naturally leads to higher median home prices and average rent per month. Outside those areas, home prices and rents are closer to the national average of $350,000 to $400,000.
Housing inventory is low, at less than two months for any home type. Unlike other regions with similar inventory, New Jersey has plenty of buyer’s markets. Investors searching for properties that they can buy and hold or fix to rent are more likely to find what they need. There are opportunities here and there for fix and flip investors, as well.
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Best Cities for Real Estate Investment in New Jersey
New Jersey’s real estate market is highly variable, depending on the location. With a longer average time on the MLS, many markets on this list privilege buyers. The best places in New Jersey to invest in real estate may have lower prices and steady growth, or high rents that make a long-term investment viable.
Jersey City
New Jersey investment real estate doesn’t get much better than Jersey City. Being so close to New York City, Jersey City makes it easier for investors to get a great return on rental properties. With average rent around $3,000 per month, it’s the highest on the list. The median home price of $600,000 — although much higher than the state median — offers a competitive advantage compared to New York. To learn more about your options, visit Renovo’s loan programs.
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Atlantic City
Although one of the best-known cities in New Jersey, Atlantic City is a bit of a hidden gem for investors. With median sale prices around $140,000, the city is by far the least expensive on this list. Atlantic City has an economy based largely on tourism, so there is a high need for available rental properties. Home values have risen steadily in the past couple of years, but it is still very much a buyer’s market. Since rent averages about $1,400 per month, investors looking to buy and rent have a high likelihood of getting a good return on their investment.
Asbury Park
As a beach town, Asbury Park has a lot of potential for investors who want to buy and rent, buy and hold, or fix and flip. The city has been a desirable alternative to more-expensive beach properties, which has created strong growth year-over-year. With median home prices ranging from $400,000 to $500,000, Asbury Park is not too far ahead of the state median. A slight buyer’s market makes it easier for investors to find great deals and act on them.
Weehawken
Like Jersey City, Weehawken’s proximity to New York City makes it an attractive prospect for people living in either state. With a median sale price of $850,000, Weehawken is certainly the most expensive on this list. The average rent at more than $3,000 per month provides a stable return on investment for the purchase. The city has a slight seller’s market and double-digit annual increases in home values, which could provide good opportunities for fix and flip investors.
Newark
For investors hoping to find a buyer’s market with steady long-term growth, Newark could be a good choice. The state capital is in the process of a renewal, but there are still plenty of opportunities to be found. The median home price is about $300,000 to $350,000, which is about 10-20% lower than the state median. With double-digit growth over the past year, Newark might offer a good return for fix and flip.
Having many buyer’s markets and high average rents, New Jersey provides plenty of great opportunities for real estate investors. To learn more about how Renovo Financial can help you get started, contact us today.
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Ready to get started? Want to learn more about how we can help you grow your investment business? Call us at (888) 568-8894, email us at origination@renovofinancial.com or fill out the form below and a representative will be in touch within 1-5 business days.
Renovo Financial
222 W. Adams St, Chicago, IL 60606
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