New Jersey Tops Nation in Home Price Growth

Garden State outpaces the US housing market amid high-wage job growth and Manhattan exodus

Apr. 10, 2026 at 7:34pm

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A minimalist abstract illustration using bold geometric shapes and primary colors to represent the divergent housing price trends between New Jersey and the broader U.S. market.New Jersey's housing market surges ahead as the rest of the country stagnates, creating a new economic divide.NYC Today

While the rest of the country grapples with a stalled housing market and high interest rates, New Jersey has emerged as the nation's top leader in home price growth. Driven by high-wage jobs and a Manhattan exodus, the state is outpacing the national average and outperforming former COVID-era hotspots like Florida.

Why it matters

The New Jersey housing boom highlights a growing economic divide in the US, as trillions in wealth flee to the 'Boom Belt' while other regions experience price corrections. This trend has significant implications for affordability, economic mobility, and the future distribution of economic power across the country.

The details

According to a recent report from Cotality, home prices in New Jersey climbed nearly 6% in February from the previous year, while the U.S. national average growth during that same period was just 0.5%. Newark recorded a 6.7% year-over-year price jump, marking the steepest hike among the 100 largest metros in the U.S. Housing supply in New Jersey remains well below pre-pandemic levels, with nearly 40% of homes being sold above asking prices.

  • In February 2026, New Jersey home prices climbed nearly 6% year-over-year.
  • In February 2026, the U.S. national average home price growth was just 0.5%.

The players

Cotality

A real estate data and analytics firm that produced the report on New Jersey's housing market performance.

Selma Hepp

The chief economist at Cotality who commented on the report's findings.

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What they’re saying

“These diverse trends indicate an ongoing process of price discovery — one where sales and comparisons remain limited — and underscore a market that is rebalancing locally rather than correcting nationally.”

— Selma Hepp, Chief Economist, Cotality

“Although the steady decrease in mortgage rates prior to the spring homebuying season raised hopes for a rebound in home prices and sales in 2026, the recent surge in rates has reduced demand in the housing market, shifting expectations for a broader recovery this year.”

— Selma Hepp, Chief Economist, Cotality

What’s next

Cotality plans to release additional data and analysis on the regional housing market trends in the coming months as the 2026 spring homebuying season unfolds.

The takeaway

New Jersey's housing market boom, driven by an influx of high-wage workers from New York City, highlights a growing economic divide in the US as certain regions experience outsized growth while others face price corrections. This trend has significant implications for affordability, economic mobility, and the future distribution of economic power across the country.