Best Towns in New Jersey for Homebuyers
- June 14, 2018
- Posted by: Andrew Rombach
- Category: Study
Pictured above is a lighthouse in the Cape May, NJ area.
Known for its extensive stretch of beaches, cultural cuisine, and immensely proud people, New Jersey is quite a populous state with nearly nine million people living within its borders, and there is plenty of history to go along with The Garden State.
Ever since the Europeans made contact with the area in the 1500s, New Jersey has often been a first stop for millions of people who migrated across the Atlantic over the next 500 years given its position on the East coast of the United States. On that note, New Jersey has seen a positive growth in population every year for over 100 years.
With over 3 million households, New Jersey boasts a 90 percent house owner retention rate from year to year. On top of that, the population is diverse with nearly a third of households speaking foreign languages.
Needless to say, New Jersey is an interesting, historical, and diverse state to live in, and we wanted to see which areas presented the best opportunities for buying a house. With this list, we highlighted the top 150 towns and cities in New Jersey for homebuyers.
Top Cites & Towns in New Jersey for Homebuyers
All data for this homebuyer report was from the Onboard Informatics city-level dataset as licensed by LendEDU. Out of an original list of over 500 locations in New Jersey, only roughly 350 were analyzed after surviving a 5,000 population cutoff. Of those 350, only the top 150 cities and towns with the highest score were included in this report.
During the data process part, we took a few different pieces of data from Onboard and made several calculations to come up with the scoring metrics and final score. Here is a breakdown of each score and what went into it.
Population Score (40-point weight)
Population score involves the projected change in population by percent over the next five years. It involved a simple percent change calculation between Onboard’s current and five-year forecasted population figures. Areas were ranked against each other using a 0 – 100 percent scale; areas with higher projected changes in population were ranked higher because it was viewed as a positive indicator of growth in the area.
Income Score (20-point weight)
Income scores were determined in the same exact way as the population scores. Using the current and five-year projected household incomes, the projected percent change of income was calculated. These calculations were ranked against each other on the same percent scale. Greater positive changes in income were seen as a positive factor, and the associated areas were ranked higher.
Value Score (40-point weight)
The value score was a simple percent ranking of the ratio of median household income to median home sale value. Higher ratios indicated higher earnings in an area relative to the value of a home. Higher ratios were viewed as a positive ranking factor, and the associated towns were ranked higher on the list.