Ocean County’s real estate market has seen a dramatic increase in home prices, with the average price of a home reaching $572,000 in 2024. This marks an 11.4% rise from 2023 and a staggering 57% increase since 2019, before the pandemic began, according to recent data from the New Jersey Division of Taxation.
Just five years ago, the average home price in the county was $365,158. Many buyers, especially those who had relied on the area for affordable housing, are now finding themselves stretched thin as prices continue to rise.
John R. McDonough, owner and broker of Ocean Beach Sales & Rentals, believes that prices will keep rising. “We get a listing in, and if it’s not priced too high, it’s going to sell in a week or two,” he said. He added that buyers have continued to flock to Ocean County, despite higher mortgage rates.
The COVID-19 pandemic played a major role in this shift, as many people, especially from crowded New York and northern New Jersey areas, moved to Ocean County looking for more space and safety. The combination of lower mortgage rates, which were often below 3%, and the ability to work and study remotely, made the move appealing.
However, as mortgage rates have since increased to above 6%, homeowners who bought or refinanced at lower rates have been less likely to sell. This has led to a significant drop in home sales, with 2024 seeing 7,149 sales in the county, a 17% decrease from 2023 and a 47% decrease from 2021.
Ocean County now has the ninth-highest average home price of all 21 counties in New Jersey, up from 11th place before the pandemic. At the same time, wages have not kept up with rising prices. According to the Federal Reserve Bank of Atlanta, a household in Ocean County with a median income of $87,863 would need to spend 58% of their income to afford a median-priced home. This is well above the 30% threshold that makes a home considered affordable.
The impact of the price surge can be seen in several local towns. In Brick, for example, the average home price increased by 69%, from $337,449 in 2019 to $571,500 last year. This rise has been fueled in part by people willing to commute to better-paying jobs in northern New Jersey or New York. Linda Riddle, a real estate agent in the area, noted that many buyers have found Brick to be an affordable option for those looking to settle down outside major cities.
The area’s popularity has also been driven by the transformation of oceanside towns. Since Superstorm Sandy hit more than a decade ago, many beachfront bungalows have been replaced by multimillion-dollar homes. Barbara Montone, a real estate agent in Lavallette, said that these new homes are attracting buyers who can either afford to pay cash or are not bothered by the high mortgage rates.
The demand for homes in Ocean County shows no sign of slowing down, particularly in coastal towns, where vacation homes are popular. For these buyers, the higher prices are not much of a concern. “Prices are not going down,” said Montone, adding that the luxury vacation market continues to thrive.
The towns in Ocean County with the most significant increases in home prices in 2024 include Bay Head, with an average price of $3.4 million, a 37.1% increase from 2023; Seaside Heights, where prices rose by 31.5% to $567,277; and Mantoloking, where the average price jumped 27.5% to $4.8 million. Other towns with notable price increases include Lavallette, Brick, and Point Pleasant, with the latter seeing an average price of $731,890, an increase of 20.4% from the previous year.
Some smaller towns also experienced price hikes, though these percentages can sometimes be skewed due to the small number of homes sold. For example, Lakehurst saw a 22.2% increase in average prices, while Ocean Gate’s prices rose by 11.1%
In contrast, a few towns saw slight decreases in prices. Harvey Cedars, for instance, saw a 1% drop, and Ship Bottom experienced a 3.1% dip. Island Heights had the largest drop at 18.9%, which suggests that in some areas, buyers may be more cautious as prices continue to climb.
The real estate market in Ocean County has changed significantly since the pandemic, with many towns seeing huge price hikes. As higher mortgage rates and limited inventory continue to affect buyers, it remains unclear when or if prices will level off. What is certain, however, is that Ocean County has become a more expensive place to live, and the trend of rising home prices shows no immediate signs of slowing down.
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