With its proximity to New York and Philadelphia, strong demand for housing, and diverse economy, New Jersey is one of the most exciting states for real estate investors looking for cheap properties to flip.
The demand for properties – especially those that have been renovated – is high. The market keeps appreciating, too, almost guaranteeing a good return on your investment. According to Zillow, house prices are up 8.5% on last year.
How New Jersey’s local economy can help with flipping success
So, why fix and flip in New Jersey and not San Diego or North Carolina? The Garden State has lots of unique conditions that provide opportunities for real estate investors, both short-term and long-term. We think it’s one of the best fix and flip markets in the US, for a few reasons:
1. Strong demand for housing
New Jersey is a commuter hub, with transport links to major cities like New York City and Philadelphia. Property is much more affordable in New Jersey, and is attractive to people who want to work in the city but live somewhere with a more relaxed pace of life. The consistent demand for housing drives up property values, which makes it easier for investors to profit from flipping properties.
2. Economic growth and job market
New Jersey has a diverse and growing economy, driven by industries such as pharmaceuticals, healthcare, finance, technology, logistics, and manufacturing. Major companies like Johnson & Johnson, Merck, Prudential Financial, and Campbell’s Soup Company are headquartered here, creating jobs and attracting workers who need housing.
Many areas in New Jersey have a high-income population, especially in towns close to New York City and in northern New Jersey. This affluent demographic creates demand for high-quality homes, allowing fix-and-flip investors to cater to buyers who can afford premium prices for updated and modernized properties.
3. Rising property values
Home price appreciation is steady in New Jersey, especially since 2020. Areas close to New York City, along the Jersey Shore, and in regions undergoing redevelopment have seen the highest increase. This trend provides opportunities for investors to buy cheap properties, renovate them, and sell them in a more expensive market.
4. Growing rental demand
Many parts of New Jersey have a strong rental market due to high demand from young professionals, students, and families who are priced out of nearby cities. Areas with universities, such as New Brunswick (home to Rutgers University), or cities with major employers like Newark, see particularly high demand for rental properties.
For fix and flip investors, this means having the flexibility to rent out your property if it doesn’t sell immediately: especially in areas where the rental market is strong. This reduces the risk of holding onto a property for too long without generating income. Learn how to maximize the rentability of your fix and flip property.
5. Urban redevelopment projects
Several cities and towns in New Jersey, such as Newark, Jersey City, Paterson, Camden, and Trenton, are going through revitalization efforts. These redevelopment projects often attract new businesses, residents, and infrastructure improvements, which increase property values over time. Investors can capitalize on these trends by buying properties in neighborhoods poised for growth and transformation.
Look for areas that have been designated as “Urban Enterprise Zones,” where investors can benefit from tax incentives to invest in underdeveloped or economically distressed areas.
6. Affordable entry points in certain markets
Some parts of New Jersey are expensive, many areas offer affordable entry points for investors. Savvy investors should look to cities like Paterson, Trenton, and Camden. These areas are seeing growing interest due to their lower prices and revitalization efforts, making them attractive for investors looking for value.
Although home prices in northern New Jersey can be high, they are still more affordable per square foot than comparable properties in New York City or parts of Connecticut. This makes New Jersey appealing to both investors and buyers looking for affordable housing.
7. Infrastructure and transportation investments
New Jersey continues to invest in transportation infrastructure, with ongoing projects to improve public transit, highways, and bridges. These investments enhance the appeal of living in New Jersey, particularly for commuters who work in New York City or Philadelphia.
Towns near train stations and bus hubs are prime targets for fix-and-flip investors to modernize older properties to sell on to commuters.
8. Favorable real estate regulations
New Jersey has relatively favorable laws for property investors, including landlord-friendly regulations and a structured process for foreclosures. New Jersey has worked to streamline its foreclosure process, reducing the time it takes to buy distressed properties. This opens up opportunities for investors to acquire properties in foreclosure or pre-foreclosure at lower prices, renovate them, and flip them for a profit.
9. High education and healthcare demand
Areas near universities and hospitals have a more stable housing market, making them attractive for fix-and-flip investments, especially given the turnover of professionals and students in need of housing. Fix-and-flip investors can target properties near educational and healthcare hubs to cater to students, faculty, healthcare workers, and medical professionals.
For a closer look at the New Jersey property market and a discussion of market trends, check out our video below:
ECF’s Top 5 Cities to Invest in New Jersey
As providers of fix and flip loans in NJ, we know a thing or two about the best places to invest. Here are ECF’s top five cities in New Jersey to look for potential properties.
1. Newark: an emerging market for investors
New Jersey’s largest city by population, Newark, is going through major revitalization and development, especially downtown and in areas close to transit hubs.Â
It’s just 20 minutes from Manhattan by train, and has lots of transport links including NJ Transit, the ATH train, and Amtrak. Its also home to Newark Liberty International Airport: a global air travel hub. This, combined withthe, improving neighborhoods makes it an attractive location for house flipping in NJ.
Newark tends to have lower house prices compared to surrounding areas. Combined with the growing interest in redevelopment, and the strong rental market, Newark is a great place to start looking for a potential deal.
Focus on neighborhoods going through gentrification. Affordable properties can be rehabilitated and sold at higher prices due to increasing demand for both homeownership and rentals.
2. Jersey City: High demand and profitable opportunities
Jersey City is one of the fastest-growing cities in New Jersey. It’s just across the Hudson from Manhattan, making it a great affordable housing hub for people who work in New York City. It has great public transportation options, with a ferry and the PATH train providing speedy access to the Big Apple.
But never mind its status as a commuter town. Jersey City itself has plenty to attract young professionals. Neighborhoods like Journal Square and the waterfront have been revitalized over the past decade, with new businesses, restaurants and cultural hubs attracting residents and investors.
Jersey City may be more expensive than Newark, but still offers opportunities for flips. The demand for housing in Jersey City is likely to continue to grow, particularly in the luxury condo and townhouse markets. Look for properties in up-and-coming areas or near PATH stations. We’ve pulled together some tips on how to evaluate a potential fix and flip property to see if it’s worth it.
3. New Brunswick: College town with potential returns
New Brunswick is home to major institutions like Rutgers University, Robert Wood Johnson University Hospital and the headquarters of Johnson & Johnson. This strong institutional presence means there’s always a steady influx of students, faculty, and staff who need places to live.
The city has put a lot of investment in its revitalization efforts, which signal strong future growth potential. The walkable downtown area and gentrifying neighborhoods offer unique opportunities to find suitable flipping properties. It also has more affordable property than Jersey City and Hoboken, making it a good entry-level choice for investors. Speaking of which, our beginners guide to house flipping has some useful advice for those just starting out.
New Brunswick also has diverse housing stock, with a mix of multifamily properties and older homes in need of TLC. Whatever type of property you’re looking to fix and flip, you’re likely to find it in New Brunswick.
4. Hoboken: Trendy area with strong resale value
Hoboken is a great choice for fix-and-flip investors due to its strategic location, high demand for housing, ongoing redevelopment, and the potential for high resale values. With a well-planned fix-and-flip strategy, investors can tap into Hoboken’s rapidly appreciating real estate market and capitalize on its growth potential.
The city’s mix of historic charm and urban lifestyle make it an attractive base for young professionals, especially those who work across the Hudson in Manhattan. Property stock includes charming older buildings, including brownstones and industrial lofts. Compared to your average property, these older homes have lots of character and are ripe wtith potential.
Because of Hoboken’s convenient transport links with New York City, it tends to attract high-income buyers who are willing to pay a premium for luxurious move-in-ready homes. For savvy investors, this means a chance to make a significant profit on fix and flip.
5. Cape May: Beachfront properties with flipping potential
Cape May is a year-round vacation spot known for its beautiful beaches, charming Victorian architecture and vibrant culture. It’s a unique market that attracts rich buyers searching for second homes, as well people interested in its well-preserved historic properties.
Fix and flip buyers can capitalize on this unique housing stock by adding modern features to old buildings while retaining sought-after period features. The thriving vacation home market provides the opportunity for high profits, as these buyers will be looking for homes that are ready for them to move into.
And if you can’t sell immediately, the strong short-term rental market means you’re unlikely to lose money. You might even consider holiding the property and looking into the benefits of Airbnb as a real estate investment asset.
Financing your New Jersey fix and flip project
New Jersey presents a fertile ground for fix and flip investors, thanks to its robust housing demand, economic diversity, and strategic enhancements in infrastructure and community revitalization. Whether you’re eyeing Newark’s emerging markets, Jersey City’s lucrative opportunities, New Brunswick’s institutional-driven demand, Hoboken’s luxury appeal, or Cape May’s unique vacation home market, there is no shortage of profitable avenues to explore. Recognizing the potential challenges and capital requirements of fix and flip projects, Express Capital Financing stands ready to assist you. Check out our video below which highlights some things to consider when embarking on a fix and flip project.
With our deep understanding of the New Jersey real estate market and our flexible, fast financing options, we empower you to seize these opportunities confidently and efficiently. Don’t let financing be the barrier to your next successful project. Apply now, and let’s build your future, one flip at a time, with Express Capital Financing.
