These New Jersey residents aren’t buying new homes

For young adults looking to buy a home, the process is more complicated today than it was six years ago. The COVID-19 pandemic in 2020, coupled with unpredictable inflation in recent years, has created a complicated market for homebuyers.

Average sales prices for all types of properties in New Jersey have increased 12.5 percent over the past 14 months. Since the beginning of 2024, prices for single-family homes have also risen by 13.4 percent and prices for terraced houses and condominiums have risen by 13.9 percent.

According to NBC News, economists said new homes are no longer “affordable” for most Americans. The average household income in the United States is $54,000, meaning the average American can only afford to buy a home in 47 percent of U.S. counties (1,321 of 2,801).

Even though New Jersey residents are among the best home purchase negotiators in America, there is a group of people in New Jersey who are not buying new homes.

Which New Jersey residents don’t buy new homes?

The NoTriangle Studio research team collected mortgage data from across the United States to learn about homebuyer trends. They found that New Jersey differs greatly from the rest of America in one area.

According to a press release from No Triangle Studio, New Jersey has the second lowest percentage of home buyers age 25 or younger in the United States. Of the 146,475 New Jersey residents taking out loans to purchase a new home, only 2.42 percent of those people are 25 years old or younger.

New Jersey is one of only four states where fewer than three percent of homebuyers are 25 or younger. In 29 of 50 states, at least 5 percent of home buyers are 25 years old or younger.

Only 47 percent of counties in the United States have homes that Americans with median annual incomes can afford. In New Jersey, that number is less than 33 percent, meaning there are fewer economical options in the New Jersey housing market for young adults.

If you are looking to purchase a new home, you should consider the following New Jersey cities as they have reduced their property taxes: