The Difference Between the North Jersey and South Jersey Market Is Like Two Different Countries

January 29, 2020

Many people ask lenders if they invest in certain states. The answer from a local lender may vary by differentiating  what goes on in that particular state. New Jersey is one of those states that might as well be two different worlds  when analyzing a deal. 


The North Jersey market, which is usually above the Hunterdon County line, is more like an extension of the New York model and South Jersey is an extension of the Philadelphia model. Properties in the North Jersey area tend to close with lawyers in every transaction. This was a common practice adopted from the New York residential buying model. This isn’t a law but it is so widely used that many people are not aware of that. 


The home values also are overall much higher in the North Jersey market. Price points appear to be closer to the Washington DC price points where as the South Jersey markets are more similar to the Philadelphia suburbs. 


There is frequently more land and rural locations in the South Jersey markets than in the North Jersey markets. The reason this is important is because when an investor is working in these areas they have to be aware of the differences. These kinds of macro bullet points can make a huge impact on someone’s bottom line in both directions. Knowing your market is one of the top three most important skill sets an investor can perfect. 


There is also a clear divide in the investor communities between the two markets. This wasn’t by design so much as it was by investors relating to other investors in the market places they are in. South Jersey investment groups tend to have their own investment networking groups that normally won’t have many visitors from North Jersey. 


The same is true in reverse. The market places and players are different and because of this it has created different cultures of investors that attend meetings that relate to either North or South Jersey. Even within North Jersey and South Jersey are sub groups of investors that are specific to their region.


In South Jersey, people tend to be investors that are near the shore points or ones that are closer to Philadelphia. There are also investors that fall in between the two and these investors tend to pick up their properties in areas are a bit more rural and harder to run comparables for. 


New Jersey is a small state with an extremely high population density. There are more investment areas within the state than a person can count. Most investors really don’t need to go beyond a five square mile radius of their investment farm area in order to find the millions of dollars waiting for them to pick up. 


The key is knowing your market so well that every time a deal comes across your desk, you are 100% certain that you will make money on it. The only way to do this is to know your market better than anyone else and have a healthy pipeline of deals to review. It doesn’t matter if you are in North Jersey or South Jersey, but knowing which one you are in and exactly what a deal looks like will determine your ability to succeed in either of these locations.




Reprinted by Permission. Ian Walsh has been a full time real estate investor since 2009. He entered the industry by building WeSellHomes2Fix. From there he built a property management company which was sold in 2015. During his time in the Philadelphia investment market he partnered with Hard Money Bankers, LLC and has since underwritten all of the loans in the Eastern Pennsylvania and South Jersey markets. Call (800) 883-8290 or (215) 839-3271 Visit           Email:


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