New Jersey has long been recognized as one of the wealthiest states in the U.S., characterized by a mix of affluent areas that vary across its landscape. The state’s history as a vacation destination for the elite dates back to the Roaring ‘20s, when the Jersey Shore gained popularity among the wealthy class. Over the decades, however, New Jersey has witnessed significant changes. Industrial zones previously bustling with manufacturing and shipping have transformed into desirable residential areas aimed at upper-middle-class families, particularly those in white-collar jobs. This shift has resulted in a dramatic rise in real estate prices along the Jersey Shore, with home values reaching unprecedented levels in the last two decades.
To analyze real estate trends in the state, a comprehensive examination of ZIP codes was conducted using Zillow’s home value index. This data includes median home values from September 2024 and a year-long average from October 2023 to September 2024. The analysis identified the 50 most expensive ZIP codes in New Jersey, highlighting distinct patterns primarily found in coastal regions and those areas near New York City. Many of the top-ranking ZIP codes once represented industrial zones before undergoing gentrification, leading to soaring home prices.
At the top of the list is ZIP code 07723, encompassing the borough of Deal in Monmouth County, with a staggering median home value of $3.71 million as of September 2024, marking a 9% year-over-year increase. Interestingly, despite the wealth associated with this area, Deal exhibits significant income inequality, as reflected in its Gini index, and the average household income is more than double the median. Following Deal, ZIP code 07620, which covers Alpine in Bergen County, stands as the second most expensive area, with a median home value rising to over $3 million. Alpine is a notable suburb to New York City and showcases a strikingly high average household income as well.
Coming in third is ZIP code 08202, covering Avalon on the South Jersey Shore, where home values have remained relatively stable, with a median of over $2.58 million. This area’s real estate market also saw a sharp uptick in prices post-pandemic, aligning with broader trends observed in many regions across the country. The fluctuations in home values post-COVID-19 have significantly influenced the overall market dynamics in New Jersey’s prestigious coastal communities.
A particularly surprising revelation is the absence of any Philadelphia metro area ZIP code among the top 100 most expensive rankings. While several high-income towns line the Jersey side of the Delaware River, the closest entry from this area is ZIP code 08033, covering Haddonfield, which falls at No. 129. This disparity underscores the powerful influence of New York City spillover into New Jersey’s real estate market, a phenomenon that has evolved over the past two decades.
As commuting patterns to New York City have changed, North Jersey has transformed into a desirable commuting hub. Increasingly, companies are relocating to North Jersey from Manhattan, prompting a surge in demand for housing in areas formerly considered further out of reach for commuters. The combination of ongoing gentrification across urban locations and soaring demand for coastal properties has reshaped the real estate landscape in New Jersey, resulting in a compelling market landscape characterized by high investment and development opportunities.
In summary, New Jersey’s real estate market reflects a dynamic history marked by shifting demographics and economic frameworks. From affluent coastal towns and suburbs that mirror New York City’s influence to evolving residential zones that have replaced former industrial sites, the state’s landscape continues to evolve. The most expensive ZIP codes reveal a complex interplay of wealth distribution, urban development, and regional demands, providing insight into the broader trends shaping one of America’s wealthiest states.