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Deep Dive: Taking a look at housing costs for both renters and buyers

Records are being set when it comes to housing costs in the area, whether you are a renter or buyer -- but will the trends last? In this week's Deep Dive, News 12's Kristie Reeter looks into what you are paying.

News 12 Staff

Feb 4, 2022, 10:26 AM

Updated 865 days ago

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Records are being set when it comes to housing costs in the area, whether you are a renter or buyer -- but will the trends last? In this week's Deep Dive, News 12's Kristie Reeter looks into what you are paying.
In a News 12 poll, New Jersey residents were asked: Has the hot housing market changed your five-year plan? It was close, but a majority said they are staying here.
Caleb Silver with Investopedia is here to help break it down. Some areas in the tri-state are seeing record high rents. Do you think that will continue?
"Yeah, I think rent is going to stay very high because there is a lot of people still moving around sort of post pandemic looking for a place to live, and we have seen rents really spike across New Jersey in the counties that we track,” says Silver. “Hudson County especially up 20.1% in 2021, Morris County up 16.7%, Monmouth up 11.2% and Bergen up 10%. This is all about inventory. Not a lot of it out there and a lot of people looking to move, which is keeping prices elevated."
Redfin, a real estate brokerage firm, broke down some records that were set last year and there were a lot when it came to home sales. Two big ones that stood out -- home supply dropped to the lowest level in history, and more than half of homes sold above list price, so it is expensive to buy. Will that trend continue for people looking to buy?
"I think it will continue as long as mortgage rates sort of hover around where they are, they are creeping up near 4%,” says Silver. “Once we get to that 5% level that brings a lot of buyers out of the market and prices should stabilize a little bit. But it is never a good bet that pricing for housing is going to go down, because especially in the tri-state area those prices seem to increase year after year."


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