Why South Jersey Homes Cost So Much (Hint: It’s Not What Everyone Claims)
Scroll through Facebook these days and you’ll see plenty of finger-pointing about South Jersey home prices. Everyone’s got an opinion. And according to a national survey, nearly half of folks believe big investors are gobbling up all the good properties.
The data tells a different story. Almost half of Americans surveyed (48%) think investors are driving up housing costs (check out the graph below):
But is that really what’s happening in Gloucester and Camden Counties?
The Real Deal on Investors
Yes, investors buy homes. You might’ve seen a few “We Buy Houses” signs around Washington Twp or Cherry Hill. But they’re not taking over South Jersey neighborhoods like social media suggests.
Nationwide, investors who own more than 50 properties bought just 2.8% of homes last year, according to Realtor.com. That means about 97% of homes sold went to regular buyers – families, first-timers, downsizers. Danielle Hale, Chief Economist at Realtor.com, cuts through the noise:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.“
So if investors aren’t the bad guys here, what’s really pushing prices up in places like Moorestown and Pitman?
The Actual Reason Behind South Jersey’s Housing Costs
Simple math: not enough houses. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), nails it:
“It’s been popular among some to blame investors, but with housing, the economics of that don’t make a lot of sense. The fundamental driver of housing costs is the shortage itself-it’s driven by the fact that there’s a mismatch between the number of households and the actual size of the housing stock.”
Look at Gloucester County. Driving through areas like Williamstown or Mullica Hill, you’ll see some new construction, but nowhere near enough to meet demand. That shortage – not investors – is what’s pushed typical homes in these areas into the $300K-$600K range.
South Jersey’s market has always been more stable than places like Florida or California. We don’t see wild swings. But that stability comes with steady appreciation when inventory stays low.
Bottom Line
Easy to blame investors. The numbers tell a different story. South Jersey simply needs more homes, and thankfully, that’s starting to happen.
We’re seeing more construction in the rural parts of Gloucester and Camden Counties. Not enough yet, but it’s a start.
Let’s talk about what’s happening in your specific neighborhood. The market varies even between Cherry Hill and Deptford.
