Newark housing market outpaces cooling New Jersey

As New Jersey’s statewide housing market shows signs of cooling, one city is bucking the trend entirely.

Newark recorded a 7.66% year-over-year increase in median list price for single-family homes as of April 18, while the state median fell 0.79% over the same period, according to HousingWire Data.

The disparity could be a sign a broader realignment in New Jersey’s housing landscape — one where buyers priced out of expensive enclaves are looking west across the Passaic River.

“Newark has been rediscovered,” said Michael Rosa, broker-owner of Newark-based Rosa Agency, a family business founded in 1976. “Newark had a period of time, especially when you’re talking about back in the late 60s, where there were the riots and things of that nature. That kind of hung over Newark — that stigma — for a long period of time. Newark has gotten over that.”

Location driving demand

Statewide, inventory rose 7.70% to 10,146 homes and new listings surged 44.05% year-over-year.

But in Newark, even with inventory climbing 34.31% to 137 homes, demand has remained robust enough to push prices higher.

Rosa attributed the strength to Newark’s proximity to Manhattan and a wave of new luxury apartment construction that has changed perceptions of the city.

“More recently, there’s just been so much investment going on over here,” he said. “You have the airport, the proximity to New York City and all the different sections Newark has. Like the Ironbound section as an example, you have a real melting pot here of different types of cultures, restaurants — things of that nature that really attract people once they actually come see it and get to know it.”

Newark’s median list price stands at $492,500 — well below the statewide median of $619,950.

The city’s price per square foot is $223, compared to $304 statewide. Those gaps, Rosa said, make Newark an increasingly attractive alternative to Hoboken, Jersey City and New York City itself.

Bidding wars persist for properly priced homes

Newark’s registers as a slight seller’s market with 2.9 months of inventory — compared to just 1.8 months of supply statewide. Newark homes are spending a median 56 days on market and 14.6% of listings saw price decreases.

Still, Rosa said competition remains fierce for well-priced properties.

“If something is priced correctly, yes, many times we’re still getting over asking price, even though we’re not strategically trying to underprice it,” Rosa said. “There’s a demand, there’s low inventory and people will pay above if they see the value of the property.”

The city’s housing stock skews older and larger than the state average.

Newark’s average single-family home is 101 years old, with 4.3 bedrooms and 2.7 bathrooms across 5,291 square feet. The median absorbed price — what buyers are actually paying — was $425,000 year-to-date.

Affordability pressures causing some buyers to flee

While Newark benefits from buyers seeking value close to New York, Rosa acknowledged that many New Jersey residents are leaving the state entirely for more affordable options.

“Pennsylvania is a good example, and the southern states are a good example, but that’s usually when people are retiring,” he said. “Jersey has just gotten too expensive for them.”

Year-to-date HousingWire Data show Newark’s median price has climbed steadily from $481,275 in January to $487,863 in March, before a slight dip to $485,667 in April.

New listings peaked in January at 55 and have since tapered to 46 in April — while absorption has slowed from 65 homes in February to 38 in April.

Still, Rosa said the city’s long-term trajectory remains positive, driven by commuters, empty nesters and first-time buyers who want more space for less money.

“People tend to look to areas where they can get back and forth to the city,” he said. “Newark offers that, and I think that that’s been a strong part of keeping our pricing up. I see more people feeling comfortable here.

“The Ironbound section has always been a pretty strong community, but you’re seeing more that people coming from the outside, settling and making their moves here.”