South Jersey Region Sees Resident Outflow as Property Taxes Drive Relocation Trends

Written by:

Rudi Davis

Date:

15 Apr 2026

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South Jersey is experiencing an outflow of residents, primarily due to New Jersey’s high property tax burden, according to Michelle Roberts, team lead at The Roberts Realty Team with Keller Williams Realty in Cherry Hill. Roberts says she currently has five clients preparing to list their homes to relocate to lower-tax states. This pattern contrasts with the region’s longstanding appeal for families seeking access to Philadelphia and New York, strong schools, and diverse job opportunities.

Roberts notes that while the migration is not yet widespread, it is gaining momentum. “I am starting to see, not a large amount, but a few people are starting to leave New Jersey,” she says. “Unfortunately, the taxes are pretty high here, so I’m starting to see a little bit of an exodus of people moving further south, mostly south or west.”

Although the outflow is not yet overwhelming, Roberts observes early changes in market behavior. Homes in lower-tax areas draw stronger interest, while those in higher-tax municipalities face slower sales. This reflects a clear split in demand based on property tax rates.

Property Taxes Drive Decisions

Even among buyers who plan to remain in South Jersey, property tax levels have become a key factor in home selection. Roberts reports that buyers are prioritizing homes on larger lots in municipalities with lower tax rates, reducing demand for more densely developed areas with higher taxes.

“I’m seeing people looking for half an acre or more is kind of like the hot spot,” Roberts says. “Anything that has a little bit lower taxes, because there has been a large increase in the state, just across the board.”

This shift in buyer priorities is affecting property values and the speed at which homes sell across submarkets. Areas once valued for location or school quality are now facing resistance if their tax burdens are significantly higher than nearby towns. In contrast, municipalities with lower property taxes are seeing increased competition and more stable prices, even if they offer fewer amenities.

Families are also re-evaluating affordability as taxes rise. For a typical family buying in the $400,000 to $450,000 range, which Roberts identifies as her most active segment, property tax bills can differ by several thousand dollars depending on the municipality. This makes taxes a key factor in monthly budgeting.

Roberts adds that recent property tax increases have intensified these concerns. While taxes have long been high in New Jersey, the pace of recent increases has made them a more urgent issue, prompting more families to reconsider staying in the state.

Retirees and High Earners Exit

Two groups are driving South Jersey’s outmigration: retirees and high-income households. Retirees are often relocating to be closer to family, especially as they age and require more support. However, rising property taxes are also a significant concern for those on fixed incomes.

“I’m also seeing some retirees that are trying to move closer to their children for additional help that they may need as they move into their 70s and 80s,” Roberts says.

High-income households are leaving for financial reasons. These buyers have greater flexibility and are choosing destinations based on overall tax burden, including both property and state income taxes. For many, the combined impact of these costs in New Jersey creates strong incentives to relocate.

Roberts says most clients leaving the state are heading south, with Florida and the Carolinas among the most common destinations. These states offer lower or no state income tax, reduced property taxes, and often comparable amenities and school quality to New Jersey. In some cases, annual tax savings can reach tens of thousands of dollars.

The departure of high-income households has broader local economic consequences. These residents often own higher-value homes, spend more locally, and contribute more to municipal tax bases. As they leave, remaining residents may face increased tax pressure, which could encourage further outmigration.

Out-of-State Listings Rising

Roberts’ current client pipeline reflects this shift. She has five clients preparing to sell their homes for out-of-state moves. While this number is relatively small, it stands out in a market where most transactions are tied to local moves or life changes.

“Right now, I have what, five different clients that are moving out of state and getting their house ready to list because they want to move out of state,” she says. “Some are moving closer to family, and some are moving to find other opportunities.”

Having multiple clients preparing for relocation at the same time suggests a broader pattern. These transactions can also be more complex, as sellers often coordinate moves across states or work within tight timelines.

The trend may also influence future demand. If outmigration continues, South Jersey will need to attract new buyers to maintain market stability. The region has historically drawn residents from Philadelphia and New York, which helps offset some losses.

Roberts notes that South Jersey is still attracting buyers from these cities. However, whether incoming demand can fully offset those leaving remains uncertain if tax pressures continue.

Rising Condo Fees Pressure Market

In addition to property taxes, rising condominium association fees are creating affordability challenges. Higher insurance costs, particularly for high-rise buildings, are forcing associations to increase monthly fees, in some cases significantly.

“I’m seeing an exit of some condo buyer clients right now, because there’s some new rulings,” Roberts says. “They’ve had to raise their insurance rates because of different high-rise condos, and it’s causing the association fees to increase.”

As a result, some buyers are shifting away from condos and toward single-family homes. “Some buyers who were originally looking for a condo are now looking for small single-family homes,” Roberts adds.

This shift is changing demand patterns, particularly in lower price ranges where condos have traditionally provided more affordable entry points. When fees rise sharply, the cost advantage of condos can disappear.

The increase in condo fees reflects a broader trend tied to rising insurance costs, stricter building requirements, and increased risk exposure. In South Jersey, these added costs are having a direct impact on buyer decisions and market activity.

Long-Term Market Impacts

Rising property taxes and increasing insurance-related costs are reducing some of South Jersey’s traditional advantages, including relative affordability and proximity to major job centers. These pressures are influencing who stays, who leaves, and which properties retain value.

If outmigration continues, the region could see gradual changes in its demographic and economic profile. The loss of high-income households and retirees may weaken demand for higher-end homes and place downward pressure on prices in certain areas.

Municipalities could also face budget challenges if tax bases shrink. This may lead to higher taxes for remaining residents, which could further accelerate outmigration.

At the same time, South Jersey continues to attract buyers, particularly from higher-cost metro areas. Its location, access to employment, and established communities remain key strengths.

For investors and developers, these trends suggest caution in higher-tax municipalities and potential opportunity in areas with lower tax burdens. Demand may remain more stable in towns where overall housing costs are relatively moderate.

Market at Crossroads

South Jersey’s housing market is at a turning point as rising costs influence both migration patterns and buyer behavior. Property taxes and insurance expenses are becoming central factors in housing decisions, reshaping demand across the region.

The coming years will determine whether these trends represent a temporary adjustment or a longer-term shift. Market conditions, policy decisions, and broader economic factors will all play a role.

For now, agent observations suggest that tax-related pressures are having a measurable impact. Buyers and sellers are responding in real time, and the direction of the market will depend on how these cost challenges evolve.