The Jersey City Housing Market - Then and Now

Like many place in the United States, the price of realCommercial development really took off along the
estate has sky rocketed in the last few years. Thewaterfront.
combination of low mortgage prices, prime location,Jersey City 5 years ago
and rapid development has made a surprisingly sleepy5 years ago, developers began to really understand
real estate market come to life in a hurry. Though thethe values of the Jersey City waterfront. Projects like
local market started to slow down in 2007, the moreLiberty Towers and The Pier were stated. The values
interesting question is what will happen next.of property began to skyrocket as the housing boom
Jersey City 15 years agobegan in earnest. The Light Rail was nearing
15 years ago, Jersey City was surprisinglycompletion, allowing areas of Jersey City beyond the
undeveloped. Most areas of the city were unsafe, andreach of the PATH to develop. New developments
what should have been an extremely valuable areasold out nearly as quickly as they opened their sales
was very undeveloped. Large parking lots took upoffice. It was truly a great time to own Real Estate in
much of the area around the waterfront, and the cityJersey City. Average real estate prices for 1 bedroom
was not safe to be in during the night. Few of theapartments peaks at over $500 sqft.
skyscrapers that exist now were around then. MuchJersey City now
of the buildings in Jersey City represented the areasThough it took a while to see the impact of the
roots as a manufacturing and shipping town. Land washousing bubble collapse, it has finally occurred. The
very cheap, and you could buy brownstones in needaverage price per square foot for a 1br apartment in
of rehab in the Paulus Hook area for $100,000. ManyHudson County is down to $435. The average selling
areas were heavily polluted and unsuitable fortime for an apartment is up, and the buyers have a lot
development.more power in the negotiating process. Though 1
Jersey City 10 years agobedroom apartments still sell eventually, the market for
10 years ago is when Jersey City really started to2 bedroom apartments has slowed dramatically.
come in its own. The city really started to put an effortPeople who price their apartments aggressively are still
into development, and construction on the Light Railable to sell, but some people are still expecting the
began. Massive development in the Newport areavaluations of early 2007. As a result, it is not
really started to talk off, and property values steadilyuncommon to see 2 like apartments in a building selling
increased. The waterfront area became safer, but thefor over $100,000 difference in price (and neither one
interior of Jersey City was still spotty at best.selling).