Earning 200K in New Jersey? Congrats, You Still Can’t Afford a House.

If you see this home, please contact New Jersey immediately. It’s been missing since 2019.

Turn on the national news and you will hear all kinds of cheerful nonsense about the housing market. Inventory is up. Buyers finally have options. Things are “returning to normal.” Everywhere else maybe. Not here in the Garden State.

In New Jersey, the market continues to do what it does best. Ignore logic, ignore income levels, and laugh at anyone trying to buy a home without selling their soul or their firstborn. The newest NAR report confirms it. The NY–NJ–PA metro is officially falling further behind. Not tight, not competitive. Falling. Further. Behind. And if you think this only affects first time buyers or people with modest incomes, think again. Even people earning $200,000 a year are still coming up short.

Welcome to New Jersey.

The Numbers That Make No Sense

Here is what the NAR data says we are missing in our region:

• 20,782 homes for buyers earning $100K
  21,973 homes for buyers earning $125K
  21,159 homes for buyers earning $150K

That adds up to more than 60,000 homes missing from the market. That is not a shortage. That is not a shortage. That is New Jersey telling you to Escape From New Jersey already and go somewhere warmer, cheaper, and with less attitude.. Even $200K earners are still short 17,979 homes in a market where a 1970s split level with a “bonus room” and original linoleum gets multiple offers.

National Buyers Lost Ground. NJ Buyers Lost Their Minds.

Across the country, a $100K earner used to be able to afford nearly 65 percent of homes (back in 2019). Now it is just 37 percent. Meanwhile in New Jersey, 37 percent would feel like winning the Power Ball. Most buyers here are thrilled if a house even pops up in their search that is not next to a highway, an electrical, substation, or be under 6 feet of water in the next heavy rainfall.

What Your Income Actually Gets You Here

NAR’s affordability math says:

• $75K income should buy up to a $254K home
• $100K income should buy up to a $339K home
• $125K income should buy up to a $424K home
• $150K income should buy up to a $509K home

In other states, these numbers make sense. In New Jersey, $254K gets you:

• A condo with $800 plus HOA fees and ZERO amenities
• One parking spot, maybe
• A building constructed before your parents were born.

And the $500K price range, which in America usually gets you something nice, gets you:

• A 1950s cape on a postage stamp sized lot that you can cut the lawn with just a pair of scrissors
• A pink bathroom last updated during the prime Elvis Presley years
• And the depressing realization that yes, this really is what half a million dollars buys in New Jersey

Why New Jersey Is Its Own Housing Universe

NAR divides metros into three groups: moving toward balance, stuck in the middle, or falling further behind. You already know which group we are in. Two reasons why:

1. Other States Are Building. We Are Not.

Texas, Florida, Tennessee, the Carolinas… building nonstop.

New Jersey?

We build environmental reviews, zoning objections, and petitions from neighbors who swear a duplex will destroy the “character of the neighborhood.” All the new construction homes being built in North Jersey are $1,000,000+ luxury homes or another multi-family “luxury” apartment buildings charging $2750 a month for a 1 bedroom overlooking a gas station or a dying mall.

2. No One Moves Up, So No One Moves Out

High earners would upgrade to bigger or newer homes, freeing up mid-tier inventory. But luxury homes here cost more than some small towns in the Midwest. So everyone stays put, nothing filters down, and buyers fight over whatever listing hits the market that does not require immediate structural repairs. How many people you know who bought their '“starter house” and its 10-15 years later and they are still stuck in it?

Should You Wait for Prices to Drop?

Only if you believe:

• Property taxes will magically go down
• Home insurance will get cheaper
• New Jersey will suddenly approve more housing
• Route 17 will ever stop being a parking lot (can’t wait for that 2 lane widening that will likely take 5 years to finish!)
• Or the Jets will win the Super Bowl (least likely scenario)

So, no.

Bottom Line

It is not your imagination.
It is not your income.
It is not interest rates.

It is New Jersey.

Our housing market lives in its own bizarre alternate reality where even high earners feel like they are competing for the last parking space at Costco on a Saturday afternoon.

The NAR data makes one thing clear. The market is not cooling here. It is not balancing. It is not “normal.” It is New Jersey. And if you are dreaming about escaping this circus, well… you are on the right website.