NJ Housing Market Among Nation's Hottest: New Data

The Garden State is right near the top when it comes to average home values across the United States year-over-year, according to Zillow market.

The real estate monitor shows New Jersey posting a five percent jump from May of 2024 through May of 2025, with the average home value now sitting at $564,794. This is up from $537,847 during the same period last year.

The Zillow Home Value Index (ZHVI) goes beyond just the homes sold, and includes information from the full distribution of homes in a region across a variety of geographies and housing types. Zillow uses their own "Zestimate" score that accounts for property data such as sales transactions, tax assessments and public records to capture the level and appreciation of values and react more rapidly to market movements.

New Jersey trailed behind just Kentucky (6.2%) and Wyoming (5.2%) in the rankings of hottest market growth.

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According to Redfin, the average New Jersey home was on the market for 32 days, which is nearly flat year-over-year. Nationwide, the average home was available for 38 days, up from 32 in May of 2024.

In terms of the average home value, New Jersey just missed the top five, and finished sixth right behind Washington, D.C.

Top 5 Average Home Values in the United States as of May 2025:

1. Hawaii ($840,570)
2. California ($787,508)
3. Massachusetts ($658,560)
4. Washington ($611,301)
5. District of Columbia ($608,076)

Bottom 5:

47. Arkansas ($219,240)
48. Oklahoma ($216,849)
49. Louisiana ($210,758)
50. Mississippi ($191,887)
51. West Virginia ($170,904)

The average home value across the United States sits at $366,289, good for a 0.4 percent year-over-year increase. New listings rose by 4.5 percent.

According to Zillow, the total inventory available was up nearly 20 percent year-over-year, the highest its been since July 2020. This led to the lowest level of competition among buyers throughout any month of May dating back through 2018.

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The greater stability in the economic landscape as compared to April has put the overall market on track to still see a projected 4.14 million new home sales by the end of 2025, 1.9 percent jump from 2024's totals.