Are you looking to capitalize on Jersey City’s surge in popularity? As young professionals and young families flee New York in search of greater affordability, Jersey City is welcoming them with open arms. From the palisades of The Heights to the skyscrapers of Downtown, there’s plenty of diverse areas for new residents to choose between. Jersey City's diversity makes it harder for investors to pin down the next hot neighborhood, leaving many asking where the smart investments are in 2018. If you ask us, these Jersey City neighborhoods are the ones investors should have their eye on.
Heights by name, heights by nature. If there’s one Jersey City neighborhood to watch in 2018, it’s the rising market in Jersey Heights. This wonderfully diverse community has something for everyone, which goes a long way to explaining its appeal to residents and tourists alike. From its budding art scene to its boutique shops, the Heights is becoming Jersey City’s go-to spot.
Families, in particular, are likely to find a dream home amongst the neighborhood’s collection of one- and two-family properties. And investors can find an ideal investment here, too. In Q3 of this year, the Heights posted record-breaking numbers, including a 14% increase in family homes median price, and a 50% year-on-year increase in the median price for condos and co-ops. Even a slight dip of 3% in year-on-year median rents couldn’t dampen a market where rental volume increased 50%. The rise of Jersey City Heights shows no sign of slowing, making it the perfect investment market for 2018.
Priced out of both Brooklyn and Manhattan, hundreds of affluent New Yorkers are heading to Downtown Jersey City, and it’s not hard to see why. The neighborhood is experiencing something of a renaissance and, while some may confuse this with gentrification, Downtown is one of the most diverse parts of the city. It helps that ethnic diversity means a mouthwatering array of restaurants. The neighborhood’s new popularity is furthered by the fact that it takes just 10 minutes to reach the World Trade Center from Grove Street PATH—making it perfect for any Manhattan commuter.
Here, investors will find a mix of traditional brownstone row houses and luxury new high rise developments. The market itself is healthy. Q3 of 2017 saw a 27% year-on-year increase in median house prices for family homes, while average days on the market fell from 48 to 31. Rent remains high at around $2,600, despite a 4% dip in Q3 making Downtown suitable for a buy and hold strategy or a buy, renovate and sell strategy.
As New Yorkers head to Downtown, many local residents are migrating to Journal Square. It may not be the most glamorous neighborhood in Jersey City, but that doesn’t stop it being a hotspot for investment in 2018. In fact, for new investors, lower prices make it a much more accessible market. But it’s also a growing market. Q3 2017 saw a year-on-year increase in family home sales of 39% and 16% year-on-year increase in median price. Condos fared well, too, with a 7% year-on-year increase in median price and a 28% year-on-year increase in the number of sales. As more luxury development takes place in downtown, we expect even more displacement to occur. A buy and hold strategy could make 2018 a profitable year for Journal Square investors.
See also: 5 Tips for Selling Metro Area New Jersey Real Estate