Big news for New Jersey real estate: Jersey City has skyrocketed to No. 2 in the just-released Emerging Trends in Real Estate® 2026 report by the Urban Land Institute (ULI) and PwC – the gold-standard forecast based on surveys of over 1,700 industry leaders. Northern New Jersey also cracked the Top 10 at No. 7, while Brooklyn (#4) and Manhattan (#9) round out a dominant Northeast showing. Dallas-Fort Worth held onto No. 1 for the second straight year.
For buyers and investors priced out of Jersey City’s urban buzz, the ripple effect is pushing smart money northwest to Warren, Sussex, and Morris Counties. Towns like Hackettstown, Andover, Byram, Blairstown, Chester, and Washington are seeing renewed interest as families seek more space, top schools, and commutable distances to NYC – all at a fraction of Hudson County prices.
As Cheryl Towey, a leading real estate expert serving Jersey City and beyond, notes: “The momentum in Jersey City is undeniable, but savvy buyers are discovering that Northwest New Jersey offers the lifestyle upgrade many are craving right now.”
The 2026 Top 10 Markets to Watch (PwC/ULI)
- Dallas-Fort Worth
- Jersey City, NJ
- Miami
- Brooklyn, NY
- Houston
- Nashville
- Northern New Jersey
- Tampa-St. Petersburg
- Manhattan, NY
- Phoenix
Source: Emerging Trends in Real Estate® 2026 – ULI/PwC
Why Jersey City Earned the No. 2 Spot
Jersey City’s leap reflects everything investors love in 2026:
- PATH trains deliver Manhattan commutes in under 15 minutes.
- Multifamily vacancy sits at a rock-bottom 2.8% despite thousands of new units.
- Office rents along the waterfront average $44.51/sf – 42% below Manhattan but rising fast.
- Median home prices hover around $680,000–$850,000 (depending on neighborhood), still offering relative value versus NYC.
The report highlights Jersey City as a prime “18-hour city” beneficiary of hybrid work, waterfront redevelopment, and finance/tech expansion.
Northern New Jersey (#7) and the Northwest Boom
While Jersey City and the Gold Coast grab headlines, the broader Northern New Jersey ranking signals capital flowing westward. Low inventory in urban cores is driving families to Warren, Sussex, and Morris Counties, where median prices range from $415,000 to $525,000 – often 40-50% below Hudson County equivalents.
These Northwest communities combine rural charm, excellent schools, and surprisingly easy NYC access via I-80, Route 46, or NJ Transit. Here are six standout towns benefiting from the spillover:
Hackettstown: Vibrant Downtown Living
This Warren County gem (pop. ~10,143) earns its “Mountain City” nickname with a walkable Main Street full of shops, breweries, and restaurants. Strong schools and community events make it ideal for young families.
Median Home Price: ~$465,000 | Distance to NYC: 50 miles
Andover: Tranquil Rural Retreat
Sussex County’s serene landscapes and low crime rates attract nature lovers. Think rolling hills, historic charm, and room to breathe.
Median Home Price: ~$485,000 | Distance to NYC: 40 miles
Byram: Lakeside Suburban Haven
Known as the “Township of Lakes,” Byram (pop. ~8,082) centers around Lake Mohawk’s private beaches and water sports. Perfect for families wanting resort-style living year-round.
Median Home Price: ~$455,000 | Distance to NYC: 50 miles
Blairstown: Historic Appalachian Charm
New Jersey’s first official Appalachian Trail Community (pop. ~6,000) offers hiking, farmland, and a storybook downtown featured in films like Friday the 13th.
Median Home Price: ~$435,000 | Distance to NYC: 65 miles
Chester: Upscale Historic Elegance
Morris County’s refined enclave (pop. ~9,400) boasts top-rated schools, boutique shopping, and luxury estates amid state parks.
Median Home Price: ~$525,000 | Distance to NYC: 55 miles
Washington: Affordable Community Charm
Warren County’s welcoming borough (pop. ~14,575) delivers first-time-buyer-friendly pricing alongside historic downtown vibes and recreation areas.
Median Home Price: ~$415,000 | Distance to NYC: 45 miles
These towns consistently show 5-8% year-over-year appreciation in 2025, fueled by remote workers, low inventory, and buyers seeking space after urban density.
What This Means for Buyers and Investors
- Urban buyers: Jersey City remains a strong buy for appreciation and rental yields.
- Families & value seekers: Northwest towns offer more house (and land) for the money, plus better schools and lower taxes in many cases.
- Investors: Multifamily and single-family rentals in these commuter towns are seeing cap rates hold steady while demand grows.
The PwC/ULI report predicts continued Northeast strength through 2027, driven by hybrid work, immigration, and relative affordability versus coastal California or Boston.
Conclusion
Jersey City’s stunning No. 2 ranking confirms what locals have known for years: New Jersey’s side of the Hudson is one of America’s smartest real estate plays. Yet the bigger story may be the quiet boom unfolding 40-65 miles west, where Hackettstown, Chester, Blairstown and neighboring towns are delivering lifestyle and value that urban markets simply can’t match.
Whether you’re eyeing a skyline-view condo in Jersey City or a historic home with acreage in Andover, 2026 looks bright for New Jersey real estate.
Ready to explore opportunities from the Gold Coast to the mountains? Contact Cheryl Towey for expert guidance across Jersey City, Northern New Jersey, and the Northwest counties.
Contact Cheryl Towey today for a personalized market analysis or to schedule viewings in Jersey City or Northwest New Jersey’s hottest towns. Visit https://www.realestatebycherylnj.com/communities
About Andrew J Rohm
Expert real estate agent specializing in Morris County and surrounding areas. Helping families find their dream homes with personalized service and local market expertise.
Contact Andrew J Rohm