New Jersey is an influential part of the economy of the east coast. Often referred to as, “the Crossroads of the East,” the state’s centralized location has made it the transportation hub connecting northeastern states. New Jersey borders New York to the north, Long Island to the east, Pennsylvania to the west, and Delaware to the southwest. The state provides numerous ports, bridges, and roads that connect cities from Boston all the way to Washington. Sandwiched between New York City and Philadelphia, New Jersey also hosts a suburban layout that spans across the state, connecting the two metro areas together.

Shadowed by two of the largest cities in the country, New Jersey acts as almost one entire suburban area. The state is considered the most densely populated state in the country. With roughly 1,174 residents per square mile, the volume of people living in the state is extraordinary. Many different types of people and cultures are seen throughout the state and play a large role in the diversity that makes up its legislator. It is also the only state to have every county in it recognized as an urban area. There are, in fact, some rural areas of New Jersey, but the majority of the landscape is developed into towns and cities. The two biggest cities, Newark and Jersey City, are located in close proximity to New York City and thrive off of the many different support services provided to the Big Apple. Other cities like Edison have had large population increases as people move away from the larger, more crowded cities. Read more »

The state’s suburban development has made it a great place to call home for so many people. Located in close proximity to many different major cities, New Jersey provides a quieter, friendlier lifestyle to new residents than for those living in the bigger cities. The beautiful waterfront properties that line the Atlantic Coast are very popular for new housing and tourism. Tourist attractions like Atlantic City and Ocean City bring people from all over into the state. Tourism also provides numerous jobs for New Jersey residents. Other industries, like the many different universities spread throughout the state, have helped to create plenty of jobs for residents. Pharmaceutical companies and a large military presence have also helped to provide jobs for the workforce.

Sales Trends
Housing in New Jersey has gotten more difficult as more and more people move to the state. Heavy density makes it harder to find land available for developing. With less room for supply, builders are focusing more on the quality of homes built. Sales volumes in the major areas reflect a lower volume, higher quality focus on new homes. Volumes are lower by comparison to other states with similar sizes, but builders are gaining more revenue per home built. Newark had a total of 4,389 houses sold in 2008. Builders in the area have focused on providing higher quality homes at higher prices, rather than a large supply of cheaper homes. Builders have managed to do well in this economy by taking advantage of a limited supply of new homes and profiting from increased revenue.

Other Key Trends
High housing prices have helped builders to gain revenue from a low volume of sales. New Jersey’s high cost of living is one of the factors that have helped the housing price remain high. New Jersey has the second highest average income in the country. The state also has the highest percentage of millionaires living in any state. Wealthier residents allow builders to offer more expensive homes. More expensive homes have helped builders survive off of higher profit margins.  « Close »