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Inventory is low and demand high for starter homes in North NJ, and really anything remotely close or easy commute to NYC. People looking for anything < $500k are having to look deeper into NJ or maybe settle for a condo instead of private house.
$500,000 is a “starter home”. Unbelievable. I don’t know how people shell out $800,000+ for the “non-starter” homes.
My parents came very close to buying a house in Dumont in 1982. It was old, but it was big (4 BR) and in decent enough shape. The asking price? $58,000 ($155,484.76 in 2020 dollars). According to City Data, the median house value in Dumont in 2017 was $384,755.
If my parents were still alive, the housing prices would kill them.
Not to worry, once New York companies realize their employees can work from home, NYC commercial real estate is going to fall through the floor, and Northern New Jersey home values right along with them. Companies will have a tiny prestige office in NYC and everyone else will be paid peanuts to work from Iowa or Bangledash.
(ha ha, I'm kidding. Companies hate employees working from home; they're sure they are slacking off)
$500,000 is a “starter home”. Unbelievable. I don’t know how people shell out $800,000+ for the “non-starter” homes.
My parents came very close to buying a house in Dumont in 1982. It was old, but it was big (4 BR) and in decent enough shape. The asking price? $58,000 ($155,484.76 in 2020 dollars). According to City Data, the median house value in Dumont in 2017 was $384,755.
If my parents were still alive, the housing prices would kill them.
Three to four bedroom house in Dumont will easily set you back between $400k to hair under $500k. Don't think there are any decent offerings at $350k to just under $400k for homes that size. Well maybe there might be some diamonds in the rough, but then you're looking at spending lots of money you may never recoup at sale.
You can thank the greedy builders for the lack of starter homes.
I want one of those too, and I'm willing to pay a premium for the lot to build it on.
But every single builder I talk to, "only do high end".
They actually turn me down when I say I don't want high end, nor do I want 2500+ sq. ft.
As long as there is a waiting list of people ready to pay these builders what they demand, we're SOL.
Not to worry, once New York companies realize their employees can work from home, NYC commercial real estate is going to fall through the floor, and Northern New Jersey home values right along with them. Companies will have a tiny prestige office in NYC and everyone else will be paid peanuts to work from Iowa or Bangledash.
(ha ha, I'm kidding. Companies hate employees working from home; they're sure they are slacking off)
There is more than working from home driving NNJ and other area home prices, and for record it has always been so.
People have always been willing to pay a premium for being < one hour commute (for any reason) from NYC. Be it access to cultural institutions, entertainment, friends/family.... there are a multitude of reasons.
What the bedroom communities of NNJ and elsewhere offer is value for money in terms of amenities for families. Public school system in NYC sucks; you might find a few decent K-5 or 6-8; but BdeB and his liberal democrat cronies in government are busting those up as we speak. High school is a mixed bag, but mostly outside of specialized places they all stink as well.
Anyone who has done the math knows the deal; you can either pay less in overall taxes and remain in NYC; but you'll have to pay for private school. Or, move to NJ, Westchester, LI or Conn and yes you'll pay more in taxes, but shell out relatively less for the kids and so forth.
Also in NNJ and other burbs you see where your tax dollars are going (mostly) in terms of local amenities. NJ is a welfare state like NY, but not on huge scale of wealth distribution. You get better parks, healthcare, things for the wife, kids and family for your money. In NYC much of your money is taken and given to "less fortunate" with crumbs tossed back to keep people from complaining too much.
Other main factor is NYC is largely a place of renters, with a very small percentage of homeowners. Of that single to three family homes make up even less of that pie, and are primarily located in Brooklyn, Queens and Staten Island.
Look at what $300k to $500k buys you say in Staten Island or Brooklyn compared with Jersey, and you get why people are looking and moving to NJ.
Worse no one is nor has built single family homes on SI or elsewhere in NYC in decades. Well not at least in any great numbers. What you get are townhouses and duplexes; so you're paying $$$$ to live on top of each other with all the congestion and whatever else that entails.
There is more than working from home driving NNJ and other area home prices, and for record it has always been so.
People have always been willing to pay a premium for being < one hour commute (for any reason) from NYC. Be it access to cultural institutions, entertainment, friends/family.... there are a multitude of reasons.
What the bedroom communities of NNJ and elsewhere offer is value for money in terms of amenities for families. Public school system in NYC sucks; you might find a few decent K-5 or 6-8; but BdeB and his liberal democrat cronies in government are busting those up as we speak. High school is a mixed bag, but mostly outside of specialized places they all stink as well.
Anyone who has done the math knows the deal; you can either pay less in overall taxes and remain in NYC; but you'll have to pay for private school. Or, move to NJ, Westchester, LI or Conn and yes you'll pay more in taxes, but shell out relatively less for the kids and so forth.
Also in NNJ and other burbs you see where your tax dollars are going (mostly) in terms of local amenities. NJ is a welfare state like NY, but not on huge scale of wealth distribution. You get better parks, healthcare, things for the wife, kids and family for your money. In NYC much of your money is taken and given to "less fortunate" with crumbs tossed back to keep people from complaining too much.
Other main factor is NYC is largely a place of renters, with a very small percentage of homeowners. Of that single to three family homes make up even less of that pie, and are primarily located in Brooklyn, Queens and Staten Island.
Look at what $300k to $500k buys you say in Staten Island or Brooklyn compared with Jersey, and you get why people are looking and moving to NJ.
Worse no one is nor has built single family homes on SI or elsewhere in NYC in decades. Well not at least in any great numbers. What you get are townhouses and duplexes; so you're paying $$$$ to live on top of each other with all the congestion and whatever else that entails.
when you account for nyc income tax and the higher mortgage for a similar home, ur coming out the same on each end of the hudson
when you account for nyc income tax and the higher mortgage for a similar home, ur coming out the same on each end of the hudson
True, but you're getting more bang for the money in NJ than NYC on average.
Again compare what $300k to $500k gets you in Brooklyn, Queens, or SI (and small part of Bronx that has single family homes) versus NJ.
Could do this all day; born and raised on SI and have been seeing people busting a move to NJ since was a kid. Every family member or friend who has done so did same calculations and got similar sums. When you add quality of life (especially for the kids), NJ simply comes out ahead for most families.
Hippy-dippy liberal democrats aren't fleeing Brooklyn for NJ for no good reasons.
You can thank the greedy builders for the lack of starter homes.
I want one of those too, and I'm willing to pay a premium for the lot to build it on.
But every single builder I talk to, "only do high end".
They actually turn me down when I say I don't want high end, nor do I want 2500+ sq. ft.
As long as there is a waiting list of people ready to pay these builders what they demand, we're SOL.
It isn't just that; the bedroom communities of NNJ and really on down to South Jersey or anything one hour or less commute (direct by train or bus even better) is full of older starter homes. Problem is many sellers aren't realistic about pricing. As article in linked piece clearly states, those sellers usually end up pulling their house off market.
Many sellers have a very out of whack idea about what their home is worth, and absent any motivation will hold out until they get that number.
It isn't just that; the bedroom communities of NNJ and really on down to South Jersey or anything one hour or less commute (direct by train or bus even better) is full of older starter homes.
I don't see it. When you say "full of", are you referring to market share ?
Quote:
Originally Posted by BugsyPal
Problem is many sellers aren't realistic about pricing. As article in linked piece clearly states, those sellers usually end up pulling their house off market.
Many sellers have a very out of whack idea about what their home is worth, and absent any motivation will hold out until they get that number.
I see those who do that, but they are a small percentage of the properties on the market.
It's the builders, period.
They're getting paid, whether they build a smaller, modest home, or whether they build a larger, lavish home. They all want to hit the home run.
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