It’s no secret that Jersey City real estate has been growing more and more in popularity. After all, with both a scenic and convenient location just across the Hudson from Manhattan, the city is a more affordable choice for people who work in NYC.
But as more people with higher incomes have moved to Jersey City’s Gold Coast, the housing market has gotten increasingly expensive. Thanks to Jersey City City Council members, however, that may be about to change.
The Cost of Jersey City Real Estate
Proposed by two City Council members, a new affordable housing ordinance aims to prevent gentrification by forcing lower prices. In Jersey City, the average home price sits at $483,600, which is over $200,000 more than the national average. In the past year, local housing pricing have gone up by 6% and are predicted to keep increasing.
To put that in terms of income, it’s typically recommended that your home shouldn’t cost more than 2 to 2.5 times your annual income. In other words, to afford a house at the average price in Jersey City, you’d need to be making close to $200,000 a year.
The Affordable Housing Ordinance
Since the average household income in Jersey City is around $60,000, people are finding themselves priced out of their neighborhoods more and more often. The new legislation aims to help Jersey City residents gain more access to affordable housing.
Developers will be required to reserve 20% of their new units for working families. More specifically, developers are required to offer affordable housing options to families making between $24,000 to $60,000 a year. Many residents of Jersey City are optimistic about what the new ordinance promises, as it would apply to every new property developer as well as new construction and redevelopment.
Need to Narrow Down Your Search?
It goes without saying that the Jersey City real estate market is one of the most competitive for miles around. That’s why working with someone who knows their way around the trends—and has your best interests in mind—is the key to success.
Stay Up-to-Date on Jersey City Trends
With the affordable housing ordinance hopefully hitting the city soon, Jersey City real estate is in for some major changes. Keep up with all of the latest happenings by reading up on my posts, and browse my website for any resources you might need.
Ready to get started on your real estate journey? Just give me a call!