Jersey City, NJ Housing Market Report

The Jersey City housing market is currently undergoing a period of stabilization and modest correction as of December 2025. With a median home value of $637,051, the market has seen a slight year-over-year decline of 1.43%. This shift is further evidenced by the increasing inventory, which has risen by 3.27% to 36,227 active listings, and a lengthening of the average time on market to 76 days. While the sale-to-list ratio remains at a balanced 1.0, indicating that properties are generally selling for their asking price, the overall environment is transitioning toward a more neutral state that offers buyers slightly more leverage than in previous years.

Price trends over the last six months reveal a consistent downward trajectory, with values dipping from $649,259 in July to the current December figure. This cooling period follows a long stretch of rapid appreciation and likely reflects a combination of higher borrowing costs and a natural ceiling on affordability within the New York-Newark-Jersey City metro area. Interestingly, while the sales market is cooling, the rental market remains robust. Median rents have climbed to $3,002, representing a 2.93% annual increase, suggesting that demand for the Jersey City lifestyle remains high even as potential buyers hesitate to commit to a purchase.

Looking ahead, the outlook for Jersey City suggests a period of price discovery where sellers must be more realistic about their expectations. For buyers, the increase in inventory and the extra three days on market compared to last year provide a window of opportunity to negotiate and conduct thorough due diligence. Sellers should prioritize competitive pricing and property condition to stand out in a growing pool of listings. As the market settles, the divergence between falling home values and rising rents may eventually attract investors seeking yield, potentially putting a floor under further price declines in the coming year.