South Jersey Homes Are Getting More Affordable
Finally, some good news for South Jersey homebuyers who’ve been priced out or waiting on the sidelines.
Buying a home in our region is getting more affordable.
Monthly payments have started to come down. The financial squeeze buyers felt over the past few years is slowly easing. This doesn’t mean everyone can suddenly afford a home. But any improvement matters after how tough our market has been.
South Jersey Affordability Is Moving in the Right Direction
One of the best ways to see this shift is by looking at how much of your income goes toward housing costs.
According to Zillow, housing is typically considered affordable when it takes 30% or less of your monthly income to cover your expenses. This includes your mortgage payment, taxes, insurance, and basic maintenance.
For the past few years, the math was well above that threshold for many South Jersey buyers. This made purchasing a home difficult for many families. But now, we’re slowly moving back toward balance. Zillow research shows it’s taking less of a typical household’s income to buy a home than it did just a few years ago (see graph below):
We’re not all the way back to Zillow’s threshold of 30% yet. Affordability remains tight. But things are trending in the right direction for South Jersey buyers.
Why South Jersey Home Affordability Is Improving
What’s driving this positive change? Much of the focus lately has been on mortgage rates dropping over the past year. But that’s not the only factor helping buyers right now. Here are three trends making homes more affordable in our region:
1. Mortgage rates have eased significantly. Rates are near their lowest level in more than three years. This directly lowers monthly payments for buyers (see graph below):
2. Home price growth has cooled across our market. Prices aren’t falling in South Jersey. But they’re growing much more slowly than a few years ago. This means buyers today aren’t facing those sharp jumps in purchase prices. Monthly payments stay more manageable and buying becomes more predictable.
3. Wages are growing faster than home prices in our region. This factor matters a lot. As Mark Fleming, Chief Economist at First American, explains:
“When income growth exceeds house price growth, house-buying power improves-even if mortgage rates don’t decline meaningfully.”
This combination doesn’t make buying cheap in places like Cherry Hill or Moorestown. But it does explain why the math works better for buyers than it did even just a year ago. The forces that hurt affordability are finally easing. Fleming explains it well:
“Affordability remains challenging, but for the first time in several years, the underlying forces are finally aligned toward gradual improvement. Mortgage rates may drift down only slowly, but income growth exceeding house price appreciation will provide a boost to house-buying power-even in a higher-rate world. Affordability won’t snap back overnight, but like a ship finally catching a steady tailwind, it’s now sailing in the right direction.“
These three factors together are why economists expect affordability to keep improving throughout 2026 in our local markets.
Bottom Line
For the first time in years, South Jersey home affordability is truly improving. This shift matters for local buyers.
The pace of improvement varies widely across our five counties. Understanding what’s changing in specific towns like Barrington or Clementon makes all the difference. Let’s discuss how these trends affect your buying power in the exact locations you’re considering.
