New home buyer in NJ? 2024 report says this is how much you need to earn

⚫ In 22 states, you need to bring in six figures to comfortably afford a typical home

⚫ The minimum has shot up by nearly 50% since early 2020

⚫ There's no sign the number will fall anytime soon

Prior to the coronavirus pandemic making an impact in New Jersey, aspiring homeowners needed to have income amounting to at least $105,000 in order to afford a typical home.

If you think that's a shocking number, brace yourself for the 2024 statistics.

New Jersey is one seven states where wannabe home buyers need to bring in more than $150,000 to comfortably afford a home, according to the personal finance website Bankrate.

Their state-by-state analysis assumes a 20% down payment. For mortgage payments, Bankrate took into account the average interest rate for a 30-year fixed mortgage, as well as property taxes and insurance rates.

Income needed to afford a New Jersey home

In order to afford a median-priced home in New Jersey, the analysis finds, buyers need to bring in at least $152,186.

You won't find one county in the Garden State with a median income of more than $152,000.

"A big part of this affordability squeeze is that home price appreciation has far outpaced wage growth," Jeff Ostrowski, an analyst for Bankrate, told New Jersey 101.5.

Twenty-two states record a six-figure minimum in 2024 in order for buyers to a afford a median home. Only six states required a six-figure salary in January 2020.

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Nationwide, income needed to afford a typical home is up by almost 50% since 2020. New Jersey's jump was 45%, according to the analysis.

"It's not as much of a challenge for repeat buyers, but it's a huge hurdle for first-time buyers," Ostrowski said.

According to New Jersey Realtors, the median sales price of a single-family home in February 2024 was $500,000. That's up from $440,000 a year ago. The number of homes for sale is down by nearly 13%.

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