For many New Jersey renters considering homeownership, they need to answer a fundamental question. That question is – How much income is needed to buy a New Jersey home in today’s market? A newly released affordability analysis offers a sobering answer and underscores how financially demanding the state’s housing market has become.
According to a 2025 income-to-ownership breakdown by New Jersey real estate analyst Robert Dekanski of Re/Max, the typical household now needs to earn about $152,000 per year to afford a median-priced home in New Jersey. This figure places New Jersey among the top 10 most expensive states for homebuyers, ranking ninth overall.
The findings highlight the widening gap between housing costs and income, particularly in a state where prices, taxes, and overall living expenses consistently exceed national averages.
“This isn’t just about purchase prices,” Dekanski said in his analysis. “Taxes, insurance, and the overall cost of ownership push monthly payments far higher than many buyers anticipate.”
Why New Jersey’s Price Tag Is So High
Housing affordability in New Jersey is shaped by more than just home values. The state imposes the highest property taxes in the country, often adding 15% to 20% to a homeowner’s total monthly housing expense. When combined with insurance, maintenance, and rising interest rates, mortgage qualification becomes increasingly difficult, even for middle- and upper-middle-income households.
As a result, two buyers looking at identical homes can face radically different income requirements depending on where in the state the property is located. In some counties, a household may need $50,000 more in annual income than in others to afford a similar home.
Dekanski’s report makes clear that income, more than lifestyle preference, dictates where many New Jersey residents can realistically buy.
North Jersey: High Incomes Required
In North Jersey, six-figure household incomes are no longer a benchmark, they are a baseline.
Counties closest to New York City command some of the highest prices in the state, fueled by commuter access, strong job markets, and limited housing supply. Bergen County leads the pack, with median home prices near $790,000. Buyers there typically need annual incomes between $180,000 and $200,000 to qualify comfortably for a mortgage.
Morris County follows closely, with median prices around $723,000 and income requirements ranging from $155,000 to $170,000. Somerset County homes, priced near $680,000, require incomes of roughly $145,000 to $160,000.
In Essex County, where median prices hover near $705,000, buyers generally need $140,000 to $155,000 in annual earnings. Union County, often viewed as one of the more affordable North Jersey options, still requires approximately $135,000 to $150,000 for homes priced near $695,000.
While proximity to Manhattan adds undeniable appeal, buyers in these counties face persistently high monthly obligations long after closing, driven largely by steep tax bills.
“The premium buyers pay in North Jersey doesn’t end with the purchase price,” Dekanski noted. “Property taxes lock in higher payments for decades.”
Central Jersey: A Middle Ground With Limits
Moving south provides some relief, though affordability remains constrained by national standards.
Central Jersey, long debated as a region but very real in real estate economics, offers a blend of access to employment centers, transportation hubs, and relatively lower prices compared with North Jersey.
Monmouth County continues to command high prices due to coastal access and commuter rail lines. With median home values around $710,000, buyers typically need incomes between $165,000 and $180,000.
Middlesex County presents a more balanced scenario. Median prices near $555,000 translate into income requirements of approximately $130,000 to $145,000. Strong local job markets, universities, and transit options continue to support demand, though affordability remains tight for first-time buyers.
In Central Jersey, buyers often gain more square footage and flexibility, but the financial margin remains narrow, particularly for households carrying student debt or childcare costs.
South Jersey: Where Affordability Still Exists
For buyers earning below six figures, South Jersey stands out as the most realistic path to homeownership.
In Cumberland County, median home prices are roughly $270,000, requiring annual incomes between $55,000 and $65,000. Salem County offers similar affordability, with homes near $265,000 and income needs ranging from $58,000 to $68,000.
Warren County sits between extremes, with median prices around $425,000 and typical income requirements of $85,000 to $95,000.
While these regions offer genuine affordability by New Jersey standards, the trade-offs are clear. Fewer major employers, longer commutes, and limited transit options are common concerns for prospective buyers.
For many households, the decision becomes one of budget versus convenience, choosing between manageable payments and proximity to jobs or amenities.
Income Determines Geography
If there is one overarching conclusion from the analysis, it is that salary increasingly dictates where buyers can live in New Jersey.
Households earning under $100,000 are largely priced out of North and Central Jersey and must focus on southern counties to find attainable options. Buyers with incomes between $130,000 and $150,000 may access portions of Central Jersey, though affordability remains stretched.
Even households earning $200,000 or more are not immune to financial pressure. In North Jersey, property tax differences alone can shift monthly costs dramatically, sometimes making higher-priced counties surprisingly stressful for high earners.
What Comes Next for New Jersey Housing
Despite rising inventory in certain regions, analysts do not anticipate significant price corrections anytime soon. Demand remains especially strong near transportation corridors, top-performing school districts, and major employment centers.
High construction costs, limited available land, and persistent buyer interest continue to support prices, even as affordability challenges grow.
Dekanski’s analysis removes any lingering ambiguity: in 2025, buying a home in New Jersey is less about aspiration and more about financial reality.
For prospective buyers, understanding income limits and how they intersect with location, taxes, and long-term costs, has never been more critical.
New Jersey’s housing market continues to evolve. One truth remains clear, though: the path to homeownership begins with knowing exactly what your salary can support.
