The Truth about Housing Affordability in Northern New Jersey

Housing Affordability: The Conversation No One Wants to Have

Let’s be honest.

Buying a home right now isn’t easy.

In Northern New Jersey, especially in places like Livingston, Millburn, Short Hills, Montclair, Summit, and the surrounding suburbs, home prices have climbed dramatically over the last several years. At the same time, inventory remains tight. And when demand meets limited supply, prices do exactly what they’re doing now: they stay high.

That’s simply the reality of the market.

And increasingly, I hear the same sentiment from buyers:

“Unless you work in tech, finance, or your parents are helping you…how is anyone supposed to afford a house?”

It’s a fair question.

The Numbers Tell the Story

The age of the typical first-time homebuyer is now approaching 40 years old. That would have sounded almost absurd a generation ago, when many people bought their first homes in their 20s or early 30s.

But today’s buyers face a very different landscape:

    •    Home prices have increased substantially

    •    Interest rates are higher than the ultra-low pandemic years

    •    Inventory is historically tight

    •    Competition for desirable homes remains intense

For many buyers, especially first-timers, it can feel like the goalposts keep moving.

The Northern NJ Reality

Northern New Jersey is a particularly competitive market because it checks so many boxes:

    •    Proximity to New York City

    •    Excellent public schools

    •    Charming, established communities

    •    Strong long-term property values

These factors attract buyers from everywhere - New York City, Jersey City, Hoboken, Brooklyn, other states, and even international markets. When demand for an area consistently outpaces the number of homes available, affordability naturally becomes strained.

It’s not just a local issue. It’s happening across many desirable suburbs around the country.

The Frustration Is Real

I speak with buyers all the time who feel like they’re doing everything “right.”

They’ve worked hard.

They’ve saved responsibly.

They have solid careers.

And yet when they begin shopping for homes, they’re surprised by how far prices have moved.

That frustration is understandable.

Pretending otherwise doesn’t help anyone.

But Here’s the Other Side of the Conversation

While affordability is a real challenge, there’s also an important long-term perspective that often gets lost in the discussion.

Homeownership has historically been one of the most reliable ways people build wealth over time.

Not overnight.

But steadily.

Every mortgage payment builds equity. Over years and decades, that equity can become one of the most meaningful financial assets many families ever accumulate.

In other words, owning a home isn’t just about today’s price - it’s about the long-term trajectory.

The Buyers Who Eventually Win

The buyers who succeed in markets like this tend to approach it with a slightly different mindset.

They understand:

    •    Their first home may not be their forever home

    •    The goal is often getting into the market, not buying perfection

    •    Real estate tends to reward patience and long-term ownership

Many people who bought homes five or ten years ago also thought prices were high at the time.

Today, most are very glad they bought when they did.

Honest Advice in a Complicated Market

There’s no sugarcoating it - housing affordability is one of the biggest challenges facing buyers today.

But there’s also no one-size-fits-all answer.

For some people, buying now makes sense.

For others, waiting and continuing to save may be the right move.

A good advisor should be honest about both possibilities.

The goal isn’t to pressure anyone into a purchase. The goal is to help people make thoughtful, well-informed decisions about one of the biggest financial moves of their lives.

Final Thought

Housing affordability is a real issue. Anyone paying attention knows that.

But real estate has always been a long game.

And for many people, owning a home, despite the challenges of getting there, remains one of the most powerful financial foundations they can build.