How Location Selectivity Is Fragmenting Bergen County's Market

The Bergen County residential market has split into clear tiers based on location, with properties in flood zones, on busy streets, or near railroad tracks now taking much longer to sell. During the pandemic, almost any home would move quickly, regardless of its location. Now, buyers are scrutinizing location as the primary non-negotiable factor in their decisions, according to Gina Gerszberg, a broker-salesperson at Douglas Elliman Real Estate. This focus on location is producing sharply different results across neighborhoods and price points: some homes sell fast, while others linger even after price cuts.

“A couple of years ago, it didn’t matter whether you were on a busy street, had railroad tracks in the back, or a traffic light in the front,” Gerszberg says. “Now people are looking at location a little bit more closely.”

Flood Zones as Major Obstacles

Flood risk has become one of the most significant deal-breakers for buyers. Properties in designated flood zones now face longer marketing times and a higher chance of deals falling through. Gerszberg explains that while these homes have always been harder to sell, the challenge has grown as buyers become more aware of insurance costs and long-term risks.

“Properties in flood zones have always been a hard sell, but definitely becoming harder now that people are getting a little bit pickier about their location,” she says. Rising flood insurance premiums and stricter lender requirements add to the total cost of ownership, discouraging buyers who might have previously overlooked flood risk. Today’s buyers are conducting more thorough due diligence and often walk away from homes with environmental liabilities.

For sellers, the problem isn’t just price. They must also find buyers willing to accept the risks and costs associated with flood zones. This usually means longer listing periods and lower sale prices compared to similar homes outside flood areas.

Luxury Market

At the top of the market, luxury homes priced correctly in sought-after neighborhoods are still moving quickly. Gerszberg attributes this to high-end buyers prioritizing location and lot size over interior condition.

“If those houses are priced right and they’re in really good condition, they’re selling quickly,” Gerszberg says of luxury properties. “If you have $3 million to spend on a house, you’re looking for location and the size of a property. You can redo it any way you want.”

Luxury buyers see homes as customizable platforms. They know they can renovate interiors to their own taste, but they cannot change the address. As a result, prime locations command a premium, and homes in these areas often attract multiple offers regardless of cosmetic updates.

The luxury segment’s resilience is also tied to the prevalence of cash buyers at higher price points. Gerszberg recently closed a $ 3.2 million sale with a cash offer, demonstrating that available capital at the top of the market minimizes financing delays.

Mid-Market

The most fragmented area of Bergen County’s market is the $800,000 to $1.5 million range. Here, buyers are highly selective about both location and condition. Unlike luxury buyers who can afford major renovations, and entry-level buyers who often must compromise, mid-market buyers want homes in desirable areas that require little or no work — an increasingly rare combination.

“Those people are really looking not to overspend,” Gerszberg says of the mid-market segment. “In those first-time home buyers that are kind of in the middle, they’re very picky.”

This selectiveness has divided the mid-market. Homes in top locations sell quickly, while those on busy roads or near less desirable features can sit for months. Sellers must compete not just on price, but also on neighborhood appeal, street character, and proximity to amenities.

Location

Gerszberg stresses that location is the only factor buyers can’t improve after purchase, making it their top priority. She advises buyers to focus on finding a home in their preferred area, even if it needs significant updates.

“The only thing you can’t change is the location of the house,” Gerszberg says. “If you have a specific town you want to be in, a school system, or a commute, that’s what matters.”

She likens homes in good towns that need work to “someone invited to the prom, but no one asked them to dance.” These properties give buyers a way into top locations without bidding wars, as long as they’re willing to handle renovations.

The return to in-office work partly drives the renewed emphasis on location. During the pandemic, remote work made commute times less important, letting buyers focus on space and price. Now that more companies are requiring employees to return to the office, commute times and proximity to transit have become critical again.

What’s Next

Gerszberg expects this focus on location to remain strong, and possibly intensify, over the next year. She does not anticipate a significant increase in inventory, which would give buyers more choices and reduce the premium on prime locations. Instead, she predicts the market will keep splitting, with homes in desirable areas holding their value and those in less-favored areas facing longer sales times and more price pressure.

This stabilization will not be uniform. Homes in flood zones, on busy roads, or in less desirable neighborhoods are likely to see more downward pressure, while those in prime locations should maintain stronger prices. For buyers, the message is clear: location is the main factor determining both current value and future appreciation. It is better to compromise on condition than on address.