Bergen County Housing Inventory Falls to Three or Four Listings per Town as Supply Drops from 125 Homes

Written by:

Rudi Davis

Date:

24 Feb 2026

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Residential transactions in Bergen County, New Jersey are being limited by a long-term shortage of homes for sale, not by interest rates, according to local agents who say national housing coverage overlooks the primary issue in the area.

Inventory Shortage Reflects Long-Term Structural Shift

National real estate coverage often attributes slower home sales to higher mortgage rates. But in Bergen County, the main obstacle is a dramatic drop in available homes. Cathy Banu, Team Leader at Cathy Banu Real Estate Team with Keller Williams Village Square Realty, says inventory has reached crisis levels in several towns.

“The slowdown is because we have no inventory,” Banu says. “There are towns with just three or four houses to sell. That’s it.”

The numbers show a steep decline. Towns that once had about 125 active listings now have fewer than 20 available. In Oradell, there are only three homes on the market. In Cresskill, there are four, and most are priced above $2 million. The current shortage is not a seasonal slowdown or a temporary reaction to higher mortgage rates. Instead, the shortage reflects a shift in homeowner behavior that is reshaping the market across many Bergen County communities.

The shortage is most severe in towns with strong schools and commuter rail access to Manhattan. These are the areas seeing the highest demand from buyers relocating from New York City, Jersey City, and Hoboken. The resulting gap between supply and demand has created persistent conditions that favor sellers, contradicting national headlines about a cooling market.

Aging in Place Reduces Available Housing Supply

The root cause of this scarcity is that more homeowners are choosing to stay put rather than sell and move elsewhere. Banu attributes this to three main factors: low mortgage rates locked in during past years, financial security, and the desire to remain close to family.

“A lot of my clients are deciding to age in place, especially in Bergen County,” Banu says. “They have low interest rates, they’re financially set, and they enjoy being in their home, so inventory stays low.”

This marks a break from previous trends, in which retirees and empty nesters often moved to Florida or the Carolinas. Now, many are staying near their grandchildren, and few are willing to trade a 3% mortgage for a new loan at 6%. As a result, a significant portion of the housing stock, particularly larger homes in strong school districts, has effectively been removed from the market.

Banu describes this as a lasting shift, not a short-term reaction. Homeowners who might have listed their properties five or ten years ago now plan to remain indefinitely. This trend is most common among older homeowners who possess the very homes that younger families want to buy.

As a result, limited inventory is likely to persist regardless of future changes in mortgage rates. Even if rates fall to 4% or 5%, homeowners with 3% mortgages and no financial need to move are unlikely to list their homes. This creates a supply problem that cannot be solved by adjusting interest rates alone.

Buyer Demand Remains Strong Despite Higher Mortgage Rates

While supply has collapsed, demand for Bergen County homes remains strong. Banu says buyers are still entering the market aggressively, often waiving inspections and appraisals and making offers above the asking price. Bidding wars continue for homes priced below the luxury tier.

“Demand is high, and we have buyers coming in from Manhattan, Jersey City,  Hoboken. Many are higher-income buyers looking for good school systems,” Banu says.

Buyer profiles have changed since the pandemic. More professionals with remote or hybrid work arrangements are seeking larger homes with dedicated office space in the suburbs. These buyers are willing to pay premium prices for properties in towns with top schools and rail access.

Banu argues that concerns about rate sensitivity are overblown in affluent markets. A 6% or 7% mortgage rate, while higher than the pandemic lows, is not unusual by historical standards. Buyers in Bergen County appear to have adjusted to the new normal and are making decisions based on lifestyle needs rather than waiting for better financing terms.

“A 7% interest rate is not unusual,” Banu says. “Most people expect rates to hover around 6%—that’s really not that bad.”

This shows that in high-demand, low-supply markets, interest rates are not the main obstacle to transactions. The real problem is that there aren’t enough homes for buyers who are ready and able to move.

What Limited Inventory Means for Buyers and Investors

The ongoing shortage has direct consequences for both buyers and investors in Bergen County. For buyers, waiting for lower rates or more inventory may be a costly mistake. Home prices in the area have been rising about 9% annually, according to Banu, with no sign of reversal.

“Those who waited for interest rates to come down have very much regretted it because home prices have kept going up,” Banu says.

For investors, the opportunity lies in recognizing that chronic scarcity supports long-term appreciation. Buying in towns with strong fundamentals, such as quality schools, rail access, and proximity to employment centers, may position investors for continued price growth. A potential risk is waiting for a market correction that may not occur in these submarkets.

The broader lesson is that national real estate coverage often misses the realities of high-value, supply-constrained markets like Bergen County. Here, the story is not about buyers hesitating over interest rates, but about a deep, lasting mismatch between supply and demand that is unlikely to resolve soon. Buyers and investors who recognize the supply constraints may benefit from current conditions, while those who delay could face higher prices.