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Where to Invest in the New Jersey Real Estate Market in 2019

by Heba BakerJan 27, 2019December 17, 2023

New Jersey is one of the hottest markets in the US housing market 2019. So, are you ready to start your property search in the New Jersey real estate market to take advantage of this? Then check out this list of the best places to buy investment property in New Jersey in 2019.

Finding Out Where to Invest In the New Jersey Real Estate Market 2019

So how exactly can you determine where in the New Jersey real estate market is best for buying a rental property? Actually, how do investors ever know where to invest in real estate? The answer is simple- research and data.

No matter what market you’re interested in, or when you’re planning on investing, you can always make a better decision if you do your due diligence. If you’ve already chosen a housing market, the next step is to study it. The best way to do so is to check out its market trends.

New Jersey Housing Market Trends

The median home value in New Jersey is $324,700. New Jersey home values have increased at a rate of 5.9 percent over the past year, and according to Zillow, they’re going to go up another 7.0 percent within the next year. This is a great indicator of some serious real estate appreciation in the New Jersey real estate market which is always a plus for investors.
Due to a shortage of inventory (which is normal for this time of year), there is higher demand and higher prices.
The median price of homes that sold in New Jersey is $279,400. Prices that low are great for New Jersey investors when compared to the median rent price of $1,900.
Low unemployment rates in New Jersey also definitely help the housing market.

So now you know the general position of the New Jersey real estate market as a whole, but how do you find the best cities in New Jersey? That’s where the data comes in and Mashvisor has it all covered.

To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

Mashvisor’s Investment Property Calculator

Here’s where things get real. Real estate analytics have really changed the game of investing in property for the better. I mean, after all, real estate investing is an industry of numbers. The faster you can get accurate and reliable data, the smarter your investment decisions will be.

Mashvisor’s investment property calculator analyzes any market of your choosing- any city and any neighborhood. The data you get from our tools is how you’re going to pinpoint the top-performing places for New Jersey investment property. Using averages for key return on investment metrics, and other important figures, we’ve composed a list of the best cities in the New Jersey real estate market. The list is also going to be divided based on rental strategy: traditional (New Jersey long-term rentals) and Airbnb (New Jersey short-term rentals).

One More Thing… Is Airbnb Legal in New Jersey?

This is a question you should ask about any market you’re interested in before you actually invest. Luckily for you, the New Jersey real estate market is a go for Airbnb rentals.

There was, however, a new law passed creating Airbnb taxes in the state. This law took effect in October of 2018. It imposes the same lodging taxes on short-term rentals that hotels and motels pay. This means that any short-term rental operators booking through sites like Airbnb New Jersey, VRBO, HomeAway, and the like, are now required to add these taxes to guests’ bills and remit them to the state.

All New Jersey short-term rentals are subject to the state’s 6 percent sales tax and 5 percent hotel occupancy tax (although the occupancy fee is lower in cities that have their own municipal tax on accommodations). So any operators of short-term rentals need to register with the state for tax purposes before they can start collecting lodging taxes from guests.

Now that everything is covered, let’s get to what you’re here for.

Best Cities for Investment in the New Jersey Real Estate Market

As mentioned, all of the following data is provided by Mashvisor’s investment property calculator.

Where to Invest for Airbnb Rentals

Andover- Sussex County

Median Property Price: $370,716
Price per Sq/Ft: $114
Price to Rent Ratio: 13
Days on Market: 163
Monthly Airbnb Rental Income: $6,298
Airbnb Cash on Cash Return: 9%
Airbnb Occupancy Rate: 56%

Lawrence- Mercer County

Median Property Price: $344,955
Price per Sq/Ft: $181
Price to Rent Ratio: 16
Days on Market: 121
Monthly Airbnb Rental Income: $5,950
Airbnb Cash on Cash Return: 9%
Airbnb Occupancy Rate: 34%

Galloway- Atlantic County

Median Property Price: $250,008
Price per Sq/Ft: $117
Price to Rent Ratio: 12
Days on Market: 130
Monthly Airbnb Rental Income: $3,941
Airbnb Cash on Cash Return: 7%
Airbnb Occupancy Rate: 56%

Long Branch- Monmouth County

Median Property Price: $329,856
Price per Sq/Ft: $189
Price to Rent Ratio: 13
Days on Market: 100
Monthly Airbnb Rental Income: $4,037
Airbnb Cash on Cash Return: 7%
Airbnb Occupancy Rate: 51%

To start your search for Airbnb investment property in the New Jersey real estate market, sign up for a free Mashvisor account to use our Property Finder Tool.

Where to Invest for Traditional Rentals

Stillwater Twp.- Sussex County

Median Property Price: $243,206
Price per Sq/Ft: $116
Price to Rent Ratio: 12
Days on Market: 115
Monthly Traditional Rental Income: $1,750
Traditional Cash on Cash Return: 12%

Pittsgrove Township- Salem County

Median Property Price: $202,946
Price per Sq/Ft: $106
Price to Rent Ratio: 5
Days on Market: 126
Monthly Traditional Rental Income: $3,435
Traditional Cash on Cash Return: 8%

Estell Manor- Atlantic County

Median Property Price: $247,415
Price per Sq/Ft: $137
Price to Rent Ratio: 6
Days on Market: 573
Monthly Traditional Rental Income: $3,458
Traditional Cash on Cash Return: 6%

Beachwood- Ocean County

Median Property Price: $267,264
Price per Sq/Ft: $166
Price to Rent Ratio: 9
Days on Market: 88
Monthly Traditional Rental Income: $2,414
Traditional Cash on Cash Return: 5%

To start your search for traditional investment property in the New Jersey real estate market, sign up for a free Mashvisor account to use our Property Finder Tool. To learn about your options for signing up for our services, click here.

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