While many U.S. housing markets face affordability issues, rising interest rates, and sluggish activity, New Jersey’s residential market is demonstrating unusual strength. In Monmouth County, luxury waterfront homes are attracting offers $200,000 above asking price, and buyer demand remains high even as borrowing costs climb.
Amanda Cruz, Team Lead at The Amanda Cruz Group of Signature Realty in Red Bank, has seen this resilience up close. After switching careers from nursing to real estate, Cruz built a business focused on high-end sellers in Monmouth County. At the same time, her team serves buyers and sellers across a broad stretch of New Jersey, from Middlesex to Camden counties.
New Jersey’s housing market stands apart from the national slowdown that has defined much of the past year. While many states are seeing frequent price cuts and extended days on market, New Jersey continues to see buyer demand outpace available inventory. “There aren’t constant price reductions here,” Cruz says. “Buyer demand still exceeds listings.” This imbalance is keeping prices firm and preventing the kind of slowdown seen elsewhere.
New Jersey’s position between New York City and Philadelphia is a major factor. The state offers suburban living with quick access to major cities, making it attractive to high-earning professionals who want both space and convenience. This geographic advantage, combined with strong local schools and amenities, supports steady demand even as other markets cool.
A recent catalyst for Monmouth County’s growth is the arrival of Netflix’s new studio facility. The entertainment company’s investment has sparked new interest in the area from both incoming employees and industry professionals.
Cruz reports that her office, just minutes from the studio, is seeing a surge in relocation clients. The impact goes beyond housing for Netflix staff. Luxury properties are now being scouted as filming locations, drawing additional attention to the market and further boosting demand for unique homes.
Unlike many regions where buyers are highly sensitive to mortgage rates, Monmouth County’s high-income buyers are less affected by rate hikes. “If you’re buying here, you’re typically on the higher earning end, and the difference of a few hundred dollars a month doesn’t change your decision,” Cruz explains.
This insulates the market from the rate-driven slowdowns seen elsewhere. Instead of waiting for rates to fall, buyers in this segment are proceeding with purchases, accepting the current rate environment as the new normal. As a result, the area has avoided the “rate lock-in” effect that has left other markets with frozen inventory and hesitant buyers.
The market’s rhythm shifted unexpectedly in late 2025. While the fourth quarter is typically one of Cruz’s busiest periods, last year’s end was unusually quiet. “Interest rates were up, people were tired, and we had a particularly cold winter,” she recalls. “That kept a lot of buyers out of the market.”
The lull was short-lived. As soon as the new year began, activity returned rapidly. “The Monday after New Year’s weekend, my phone hasn’t stopped ringing,” Cruz says. The quick rebound highlights the underlying strength of demand and buyers’ willingness to act when the timing feels right.
Although competition remains intense, buyer behavior has evolved since the pandemic boom. During the era of 2% and 3% mortgage rates, buyers often overlooked inspection issues and moved quickly to secure homes. Now, buyers are more discerning and thorough in their due diligence.
“Buyers are definitely more demanding and pickier than they were a few years ago,” Cruz observes. The desperation that fueled bidding wars has faded. Instead, buyers expect homes to be move-in ready or are more likely to negotiate on price and repairs. This shift has brought the market closer to pre-pandemic norms, where inspections and contingencies play a larger role in negotiations.
Monmouth County continues to benefit from its appeal to New York City residents seeking more space and suburban amenities without giving up access to Manhattan. The area’s three ferry connections to Lower Manhattan make it a practical choice for commuters.
“A significant portion of buyer calls are from people leaving New York City,” Cruz says. “With three ferries nearby, Monmouth County is an attractive alternative for those who want to live outside the city but still commute in easily.”
This ongoing migration from New York City sustains demand for both primary residences and second homes, especially among families and professionals who want more space without severing ties to the city.
New Jersey’s market strength is also rooted in its cultural and family dynamics. Unlike regions where residents relocate for lower taxes or warmer weather, many New Jersey families prioritize staying close to relatives.
“Culturally, we’re very rich, with a lot of families choosing to live multi-generationally or near each other,” Cruz explains. “These are not the people moving out of state. They’ll pay more to remain close to family.” This preference helps cushion the market against out-migration trends seen in other states, supporting stable demand year after year.
A notable demographic shift is underway as baby boomers, who have long held onto their homes, begin to downsize. Many are selling properties they’ve owned for decades, creating much-needed inventory.
“We’re seeing the boomer generation finally selling homes they’ve lived in for 25-plus years because they need to downsize,” Cruz says. For these sellers, interest rates are less relevant than lifestyle needs. Their decision to move is unlocking stagnant inventory, offering new opportunities for buyers.
Cruz’s decision to move her team from eXp Realty to Signature Realty highlights the importance of brand alignment in today’s market. She sought a brokerage with a strong reputation and a focus on high-end properties, reflecting her own business priorities.
“I wanted to be aligned with a brokerage that had an elevated reputation in the market,” Cruz says. She found that eXp’s recruiting-driven environment didn’t align with her focus on selling and client service.
The Amanda Cruz Group’s experience with Zillow Flex, a widely used lead-generation platform, illustrates the challenges of balancing technology with personal service. After four years in the program, Cruz decided to leave, citing concerns about the platform’s impact on client relationships.
“It became more detrimental to our business. The metrics are unfair, and I feel it can put buyers in a compromising position,” she says. Cruz emphasizes that her business is built on reputation and referrals, not just online leads.
Looking ahead, Cruz is watching several factors that could shape the remainder of 2026. The ongoing expansion of Netflix’s operations is likely to keep Monmouth County in the spotlight, drawing new residents and raising the area’s profile. Meanwhile, the wave of baby boomer downsizing is expected to gradually increase available inventory, offering fresh opportunities for both buyers and sellers.
New Jersey’s ability to maintain momentum while national markets slow underscores the power of local factors — geography, demographics, economic investment, and cultural ties — in shaping real estate outcomes. For agents and buyers operating in similar high-demand, high-income markets, New Jersey’s experience offers a clear example of how premium locations can thrive even when broader trends point downward.
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