New Jersey vs. New York Real Estate: Which Market Is Right for You in 2025?

by Bill Bekisz

Why Compare New Jersey vs. New York Real Estate?

When it comes to choosing where to live or invest, few comparisons are more debated than New Jersey vs. New York real estate. These neighboring markets offer completely different experiences, both in terms of cost, taxes, lifestyle, and long-term value.

Whether you're relocating, upsizing, or investing, this in-depth guide will help you weigh the pros and cons of buying real estate in New Jersey vs. New York in 2025.

1. Home Prices: Get More Space for Your Dollar in New Jersey

New York City Real Estate Prices (2025):

Manhattan: $1,300–$2,000+ per sq. ft.
Brooklyn: $800–$1,200 per sq. ft.
Queens: $600–$1,000 per sq. ft.

New Jersey Real Estate Prices (2025):

Jersey City & Hoboken: $600–$900 per sq. ft.
Suburbs (Montclair, Maplewood): $400–$700 per sq. ft.

Takeaway: If you're prioritizing space, newer construction, or outdoor amenities, New Jersey homes typically offer more square footage and lower price tags compared to NYC properties.

2. Property Taxes and Income Taxes: A Critical Cost Breakdown

Property Taxes:

New Jersey: Among the highest in the U.S., averaging 2.2%
New York (NYC): Generally lower, especially within the five boroughs

Income Taxes:

New York residents pay state + NYC tax
New Jersey residents pay state income tax only

Takeaway: New Jersey’s high property taxes are a shock to some buyers, but for high-income earners, avoiding NYC income tax may offer significant savings.

3. Commuting and Transit: Location, Location, Connection

NYC Advantages:

Subway access throughout the five boroughs
Walkable neighborhoods
Little need for a car

NJ Commuter Benefits:

Direct access to NYC via PATH, NJ Transit, ferries
Top commuter towns: Hoboken, Jersey City, Montclair, Maplewood

Takeaway: For those working remotely or on a hybrid schedule, New Jersey suburbs offer more value and space. For daily NYC commuters, proximity to transit lines is key.

4. Lifestyle: Urban Energy vs. Suburban Serenity

NYC Living:

World-class dining, culture, and nightlife
Car-free convenience
24/7 energy

Living in NJ:

Family-friendly suburbs
Access to beaches, hiking, and space
Excellent public schools and quieter neighborhoods

Takeaway: If you're raising kids, working from home, or want more peace and space, New Jersey offers a better quality of life for many. If you're a young professional or creative who thrives on energy and events, NYC still leads.

5. Investment Opportunities: Where Should You Buy in 2025?

New York Investment Insights:

High appreciation in Brooklyn, Long Island City, Upper Manhattan
Rising rents post-pandemic boost investor ROI
More co-op and condo regulations

New Jersey Investment Insights:

Strong ROI in Union City, Newark, Jersey City, and multi-family homes
Lower upfront costs
Increasing demand from NYC transplants

Takeaway: NJ offers better cash flow and more landlord flexibility. NYC remains a long-term capital appreciation play, especially for luxury or unique properties.

6. The Intangibles: What Really Matters to You

When choosing between New Jersey and New York real estate, the most important factor is how you want to live:

Need a home office, backyard, or good schools? → Look in NJ
Want walkability, nightlife, and access to culture? → Stick with NYC
Think about commute, community, and future goals—then align them with your real estate choices.

Conclusion: Is NJ or NY Real Estate Right for You in 2025?

There’s no one-size-fits-all answer. New York offers unbeatable energy and prestige, but at a premium. New Jersey delivers value, space, and lifestyle for those willing to cross the river.

Whether you're:

A first-time buyer
A remote worker looking to upgrade
An investor eyeing rental yield

...understanding both markets is essential to making the right move.

📍 Need Help Navigating Your Options?
Our team specializes in relocation services, first-time homebuyer education, and investment strategy across NYC and NJ. Let us help you build a roadmap to your next chapter—on the right side of the Hudson.