There are many expensive places to live in New Jersey.
In Alpine, the median home value is $2.5 million. Saddle River, where the likes of Rosie O’Donnell and Mary J. Blige own property, has a median home value of $1.7 million.
Yet, neither is New Jersey’s most unaffordable real estate market for that town’s residents. That accolade belongs to the Atlantic City metro area, which includes Atlantic City, Hammonton and Pleasantville.
According to Realtor.com, the Atlantic City metro area is one of the most unaffordable real estate market in the country for the residents who live in the region.
“Atlantic City’s big draw is its casinos — and that means plenty of lower-paid, service jobs for locals. But these gigs make it tough to afford the area’s luxury, beachfront condos and even the significantly more affordable single-family homes and condos,” the real estate website writes.
“Atlantic City also has a fair number of retirees who don't necessarily have huge take-home pay, and tend to spend a higher share of income on housing. They flock here because Atlantic City is still a relative bargain compared with much of the Northeast.”
The median listing price in the Atlantic City metro area, according to DataUSA, is well below the state’s median of $319,900, making it a relatively inexpensive market for someone not living in the area to purchase property or a second home.
To determine the most unaffordable markets, Realtor.com analyzed 500 areas and identified the widest gap between what people earn and what they spend on housing, both renting and owning. (The website only included one area per state in its top-10 list.)
In the Atlantic City metro area, it found the median listing price on homes is $240,000, and the median monthly housing cost is $1,290, while the median household income is $57,514.
This means residents in the Atlantic City metro area are spending nearly 27 percent of their income on housing, according to the website.
Realtor.com mentions the Atlantic City metro area has become more unaffordable in recent years as the area is “on the upswing again,” rebuilding after Hurricane Sandy and opening new casinos. Home values increased 6 percent since last January, according to the website.
Tracey Newmones, a real estate agent in Atlantic County for 25 years, previously told NJ Advance Media that a depressed local economy led to the crumbling of the real estate market, but with the casinos reopening and other revitalization projects, like Stockton University continuing to expand its footprint, she is optimistic.
"It is a perfect storm right now," she said.
The most unaffordable markets in the country, according to Realtor.com, are:
- Santa Cruz, California
- Miami, Florida
- Grants Pass, Oregon
- Atlantic City, New Jersey
- New York, New York
- Kahului, Hawaii
- Jacksonville, North Carolina
- Bellingham, Washington
- Barnstable Town, Massachusetts
- Carson City, Nevada
Joe Atmonavage may be reached at jatmonavage@njadvancemedia.com. Follow on Twitter @monavage. Find NJ.com on Facebook.
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