5 Worst New Jersey Cities To Buy Property in the Next 5 Years, According to Real Estate Experts
The real estate market in New Jersey is sending mixed signals, according to the New Jersey Real Estate Network. On one hand, a 12.5% year-over-year increase in median sales prices across all property types suggests a strong market. However, higher mortgage rates are making it harder for first-time buyers to jump in, and, while inventory has remained stable, the combination of rising prices and loan costs could pose a challenge for potential buyers.
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That’s why choosing your locations wisely is important, with some New Jersey cities presenting far more risk than reward over the next five years, as they struggle with economic stagnation, crime and low property values. According to real estate experts, here’s a look at five New Jersey cities to think twice about. Also check out the various housing markets that will plummet in value before the end of the year.
Camden
According to Francis Oduro, Owner/President of real estate investment and management company KEstates, Camden has been “one of the worst cities for property investment over the past five years,” and he sees the same issues continuing into the next five.
The numbers back him up. With abandoned homes scattered across its neighborhoods, property values in Camden remain stubbornly low. A recent study by Rocket Moving ranks Camden as the top city in the U.S. that people “should move out of but aren’t” based on its sky-high crime rate (making it risky for families and investors alike) and stagnant market. The city’s unemployment rate of 4.7% further drags down economic prospects. If you’re a homebuyer, Camden may offer cheap properties, but don’t expect value appreciation anytime soon.
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Pennsauken
Camden’s neighbor, Pennsauken, faces many of the same challenges, making it another problematic choice. According to Oduro, he and other industry professionals have consistently avoided acquiring land or pursuing new developments in Pennsauken. Its proximity to Camden only worsens the city’s problems, including higher crime rates and a tarnished reputation.
Pennsauken’s prime location should make it a desirable spot, but it hasn’t capitalized on this advantage. Pennsauken might seem affordable if you’re looking to buy, but it comes with long-term financial risks thanks to low property values and investor hesitation.
Pictured: Camden, New Jersey
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Trenton
As the state capital, Trenton should be an exciting investment, but in reality, it’s a market filled with challenges. Property values in Trenton have consistently lagged behind other New Jersey cities, driven by crime and unemployment.
Oduro says that while his company still invests in Trenton, particularly in affordable housing, it’s not a city where quick profits are likely. Long-term investors might find some hope, but Trenton’s sluggish growth and risky market are hard to overlook for those looking to buy and sell in the next few years.
Paterson
Property investment in Paterson might seem like it has potential on paper, given its proximity to New York City, but it’s a different story when you dig a little deeper. The city, like the others on this list, has suffered from issues like high levels of unemployment and crumbling infrastructure. Paterson’s crime rates have also been high for years, though recent police reforms have led to a drop in violent crimes.
Property values are still low, however, and resale potential is risky. Realtor.com data shows homes here took the longest to sell compared to the rest of the state — over 100 days on the market, a major red flag for investors. While there’s always hope the city could bounce back, experts aren’t holding their breath for the next five years.
Irvington
The final city on the list, Irvington, may not be the most appealing place to buy real estate, not least because it has a murder rate that’s eight times the state average. Like Paterson, Irvington has potential thanks to its proximity to New York City and Newark, but it continues facing problems with the local economy. High crime rates and declining property values mean buyers looking for a quick investment return may struggle here.
If you’re considering buying property in New Jersey, these cities may offer low upfront costs, but they come with high risks. Whether it’s Camden’s crime rates, Pennsauken’s stagnant market, or Trenton’s slow pace of development, each city presents significant obstacles for real estate investors.
Whether you’re looking to relocate, retire or just invest, the challenge of real estate is balancing risk with reward. In these five New Jersey cities, the risks potentially outweigh the benefits, making them some of the worst places to buy property in the state over the next five years.
Pictured: Newark, New Jersey
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This article originally appeared on GOBankingRates.com: 5 Worst New Jersey Cities To Buy Property in the Next 5 Years, According to Real Estate Experts
