Top 10 Most Expensive Towns in New Jersey Revealed—as the Garden State Inches Closer to New York Prices

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It sits just across the Hudson from New York City, but New Jersey hasn’t always been considered an equal counterpart.

Now, the state traditionally known for Atlantic City and the raucous reality show The Jersey Shore, is catching up with The Big Apple in terms of price and cachet. In fact, it may be doing more than catching up with the shining city across the river—it might be surpassing it.

“Perhaps surprisingly, the median sale price in the state of New Jersey [$443,775] was higher than in the state of New York in 2023 [$431,520],” says Realtor.com economist Hannah Jones.

While statewide home prices are a bit more diluted than what you might find in each state’s priciest areas, Jones points out that this still highlights “the recent surge in demand in New Jersey.”

While the median home price for New Jersey falls just slightly short of New York in 2024 so far ($469,906 verses $470,235), they’re more or less neck-and-neck. Price growth also seems to be favoring the Garden State, where prices climbed 48.4% between 2019 and 2023, outpacing New York’s 37.6%.

As for New Jersey’s priciest locales, the top five most expensive zip codes—belonging to Deal, Alpine, Mine Hill Township, Sea Girt, and Mantoloking—had median sale prices of $2.3 million to $6.5 million.

So what is causing the prices in Jersey to surge to the point of nearly overtaking the city that never sleeps?

Why is New Jersey becoming as pricey as New York?

It’s much more than proximity to New York, though that is certainly part of the appeal, says Guy Hobson, of Coldwell Banker Warburg.

“These areas are attracting people from all over the country—not just New Yorkers, though New Yorkers do still account for almost 28% of the yearly migration,” he explains.

“New Jersey has always been a popular place for young New Yorkers who have or are starting families. There are more New Yorkers today moving to New Jersey—or Westchester, Upstate New York, and Connecticut—because they are able to work remotely, as well as the close proximity to New York in case they still have to commute on a daily basis.”

Hobson notes that a lack of inventory in the desirable areas is keeping the prices high as well, and he points out that owners who may want to move are stuck.

“Much of the lack of existing inventory (around 25%) is due to homeowners that locked in 2%-3% in the pandemic-era low mortgage era and the previous six to seven years,” he says.

“In order for these homeowners to keep the same monthly mortgage payments when they buy their next home, they would be buying half the house they have now and paying the same type of taxes on a smaller property.

“It doesn’t make sense for them to sell unless they are moving to a more inexpensive area or state, retiring, or because of a job relocation.”

The New York City skyline from Hoboken, NJ

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And while the pandemic might have sent New Jersey real estate soaring, Allan DeGuzman, a Sewell, NJ-based strategic real estate investing advisor at Real Estate Bees, believes that the surge in interest had started to take hold before that.

“I noticed many New Yorkers trading in their expensive city lifestyles for more affordable properties in New Jersey, sometimes double or quadruple the size of what they had in New York,” he says.

He agrees that a lack of inventory might keep prices in the stratosphere, especially with older homeowners experiencing the mortgage lock-in effect.

“I’ve seen homes in places like Sewell (Gloucester County), which used to go for around $300,000, now selling for up to 50% more than previous asking prices,” DeGuzman says. “This is because people are willing to bid higher and higher, fearing that losing out would only cause more delays in finding a home for their families.”

It’s not just about New York

But DeGuzman believes what really attracts residents to the luxe areas like the ones on this list is their quality of life.

“What really draws people in, myself included, is the privacy,” he says. “You get a luxurious, beachfront, and laid-back vibe and experience, without the crowds you find in places like neighboring Wildwood or Ocean City.”

Writer and teacher Rachel Miller, who has been summering in Avalon for many years, says that the town, as well as nearby Stone Harbor, are more populated by Philadelphia Mainliners than New Yorkers.

“New York plates are almost nonexistent,” she says. “These are second homeowners who close down shop after Labor Day.”

In northern Jersey towns like Alpine, Short Hills, and Chatham, DeGuzman says, “These areas have some of the best schools around, attracting families who are willing to pay more for their kids’ education. Plus, with nearby train stations that go straight to New York City, it’s perfect for commuters looking for suburban peace and tranquility without sacrificing convenience. The homes here come with big yards, gated neighborhoods, and huge estates.”

Agent couple Geoff and Lorraine Hurlbut, of Keller Williams, who were once sold a Nutley home for $250,000 over the ask, say that some buyer behavior can become so aggressive that they have a nickname for those types of buyers: “Jaws.”

“Frequently there is one offer that is substantially above and beyond the others in terms of both price and conditions,” says Geoff. “This buyer —Jaws—has usually lost bids on several previous homes, has tired of the process, and has decided to go ‘all in’ on the property.”

And if a so-called “Jaws” isn’t after the same house you are, then a celebrity might be. Alpine in Bergen County is a favorite suburb for celebrities. Eddie Murphy, Tracy Morgan, Stevie Wonder, and Britney Spears have all lived there, according to reports.

But with median prices in the millions and sharklike bidding frenzies, is living here worth the money and competition?

Apparently, yes, according to DeGuzman.

“It you’re after high-end, peaceful living with lots to do, it’s definitely worth it,” he says. “You’ll get a beautiful home with all the space you need, whether you’re working from home or just wanting to enjoy life by yourself or with your family. And if another pandemic ever happens, you’ll have plenty of space without being too far from the city.

Below are the top 10 priciest towns in New Jersey: