House & Home
Thu, December 11, 2025
Wed, December 10, 2025
How Housing Affordability in North Jersey Has Shifted Since 1965: A 60-Year Overview
//house-home.news-articles.net/content/2025/12/1 .. y-has-shifted-since-1965-a-60-year-overview.html
Published in House and Home on Thursday, December 11th 2025 at 5:03 GMT by NorthJersey.com- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
How Housing Affordability in North Jersey Has Shifted Since 1965: A 60‑Year Overview
The North Jersey Real Estate article on the NorthJersey.com website traces the dramatic evolution of housing affordability in the region from the mid‑1960s to the present day. Using a combination of historical data, contemporary market analysis, and expert commentary, the piece argues that the region’s once‑stable housing market has become increasingly strained, with a series of economic, regulatory, and demographic forces driving the “affordability gap” that now plagues many families.
1. A Historical Baseline: 1965–1975
The article opens with a snapshot of the North Jersey housing market in the 1960s. In 1965, the median home price in the region hovered around $23,000, while the median household income was roughly $23,000 as well, yielding an affordability ratio (home price to annual income) of 1:1. This close alignment meant that most working‑class families could purchase a home with a conventional 30‑year mortgage and minimal financial strain.
During the next decade, the U.S. experienced a housing boom fueled by post‑war construction, favorable mortgage terms, and a relatively stable economy. By 1975, median home prices rose to approximately $50,000 – a 120% increase – but so did household incomes, climbing to around $35,000. Affordability, while stretched, remained manageable for many families.
2. The 1980s and 1990s: Rising Interest Rates and Supply Constraints
The 1980s brought dramatic swings in mortgage rates. The article notes that rates peaked at 18% in 1981, making monthly payments substantially higher. The article links to the Federal Reserve’s historical rate data (link provided in the text), illustrating how many households were forced to take on larger mortgage obligations or delay home purchases.
In the 1990s, suburban development accelerated. The piece cites the U.S. Census Bureau’s “Population Growth and Migration” dataset to show a 30% increase in North Jersey’s population between 1990 and 2000. However, zoning regulations, particularly “minimum lot size” laws, limited the number of units that could be built on a given parcel. The article links to the Bergen County zoning board’s regulations for a deeper dive into how these rules shape supply.
3. The 2000s: The Great Recession and a Stagnating Market
The housing bubble burst in 2008, but the article argues that its impact on affordability in North Jersey was muted relative to other regions. While home prices dropped by roughly 15%, median household incomes fell even more sharply. The affordability index – a metric that measures how many months of gross income a family would need to cover a typical mortgage payment – fell from 70 in 2007 to 65 in 2009, according to data from the National Association of Realtors (link included).
The article highlights that the post‑recession period saw a resurgence in construction, particularly of mixed‑use developments aimed at younger buyers. Yet these projects were often “gated” and priced well above the median income, keeping affordability issues in play.
4. The 2010s: A Shift Toward Luxury and Declining Income Growth
In the decade following the recession, the article notes a clear shift in the demographic composition of home buyers. According to the American Community Survey, the proportion of households headed by a single parent rose from 15% in 2010 to 20% in 2019. However, the median home price in the region climbed to $450,000 by 2019, while median household income grew modestly to $75,000 – a ratio of 6:1, a stark contrast to the 1:1 ratio of the 1960s.
The piece also examines the rise of “affordable” rental units, linking to the Department of Housing and Urban Development’s 2018 report on housing vouchers. It argues that while rental options have expanded, they often come with higher vacancy rates and lack the stability of home ownership, further widening the affordability gap.
5. 2020–2025: Pandemic‑Era Prices, Rising Rates, and New Policy Interventions
The article’s core argument centers on the last five years, during which housing affordability has taken a sharp turn for the worse. It draws upon the 2021‑2025 data from the North Jersey Real Estate Board to show that median home prices surged to $600,000, a 33% increase from 2019. In contrast, the median household income in the region topped out at $95,000 in 2024.
A key driver identified is the rapid increase in mortgage rates. While rates hovered at a historic low of 3% in 2020, by 2023 they had climbed to 5% and are projected to reach 6% in 2025, according to the Federal Reserve’s “Rate Forecast” link embedded in the article. Higher rates translate to higher monthly payments, reducing the number of homes a family can afford.
The article also examines policy responses. It highlights a recent county‑wide plan to reduce minimum lot size requirements in certain residential zones, a measure intended to increase density and lower construction costs. It cites a 2024 report from the New Jersey State Planning Board that outlines expected impacts on supply.
6. Bottom Line: An Affordability Crisis that Demands Action
In its conclusion, the article posits that the North Jersey real estate market has moved from a balanced, affordable market to a highly leveraged one where most middle‑income families are priced out of the market. The piece emphasizes that unless supply constraints are eased and mortgage rates are managed more carefully, the affordability gap will continue to widen.
Key takeaways include:
| Time Period | Median Home Price | Median Household Income | Affordability Ratio (Home Price ÷ Income) |
|---|---|---|---|
| 1965 | $23,000 | $23,000 | 1:1 |
| 1975 | $50,000 | $35,000 | 1.4:1 |
| 1990 | $75,000 | $55,000 | 1.4:1 |
| 2000 | $120,000 | $65,000 | 1.8:1 |
| 2010 | $300,000 | $75,000 | 4:1 |
| 2020 | $450,000 | $90,000 | 5:1 |
| 2025 (proj) | $600,000 | $95,000 | 6.3:1 |
The article closes by urging stakeholders – from local governments and developers to banks and community advocates – to collaborate on solutions such as upzoning, affordable housing mandates, and community‑scale financing options. It stresses that the real‑world cost of home ownership, when considering down payments, property taxes, insurance, and maintenance, is far higher than the headline price alone suggests.
Additional Resources
The article includes several hyperlinks that offer deeper dives into the data and policy context it cites:
- U.S. Census Bureau – Population Growth and Migration: Provides raw figures on North Jersey’s demographic shifts.
- Federal Reserve – Historical Mortgage Rates: Tracks the dramatic rise and fall of rates over the past six decades.
- Bergen County Zoning Board – Minimum Lot Size Regulations: Explains how zoning has limited housing supply.
- National Association of Realtors – Affordability Index: Offers a broader context for the region’s affordability trends.
- Department of Housing and Urban Development – 2018 Housing Vouchers Report: Details the state of affordable rentals in the area.
- New Jersey State Planning Board – 2024 Density Initiative: Projects how upzoning could affect future supply.
These resources, combined with the article’s narrative, paint a comprehensive picture of how housing affordability in North Jersey has evolved and why it remains a critical issue for residents, policymakers, and real‑estate professionals alike.
Read the Full NorthJersey.com Article at:
[ https://www.northjersey.com/story/money/real-estate/2025/12/11/how-housing-affordability-changed-1965-2025-real-estate/87700148007/ ]
