Three South Jersey counties collectively saw one of the largest gains in real estate value across the U.S. in 2023, according to a report from Redfin.
The study calculated the aggregate value of homes in the 96 most populous metros in the U.S. The Camden metro — which Redfin defines as encompassing Burlington, Camden and Gloucester counties – saw the total value of all homes increase 10.8% in 2023. That was the third largest gain in the nation behind Newark, New Jersey, and New Haven, Connecticut.
The Philadelphia market — which Redfin defines as Philadelphia and Delaware counties — had the smallest gain in value across the U.S. at 0.3%. Four other metros saw their total home value decrease: Boise, Idaho (-3.8%), New York (-1%), New Orleans (-0.8%) and Stockton, California (-0.7%).
Redfin calculates Philadelphia’s Pennsylvania suburbs separately, and the analysis found that those home values jumped 8.4% in 2023. That subsection includes Montgomery, Chester and Bucks counties. The more than 8% hike was among the 20 largest in the nation.
In total, the value of U.S. homes increased 5.3% throughout 2023.
Prices have been rising sharply in South Jersey for much of the past year and aren’t expected to slow anytime soon. Twenty of the 30 ZIP codes in Greater Philadelphia expected to see the most growth in home values in 2024 sit in South Jersey, according to Zillow data. Three of the 10 with the largest projected price increases are in Camden proper.
Realtors say potential buyers are flocking to Philadelphia’s South Jersey suburbs in search of cheaper prices and more land compared to Pennsylvania suburbs — or North Jersey suburbs for that matter. It also offers relative ease of access to Center City, to the Jersey Shore and even to New York.
“Places like Newark and Camden are likely seeing home values jump in part because they’re attracting demand from people who are priced out of New York and can now work remotely,” the Redfin report reads.
The total value of homes in Camden, Burlington and Gloucester counties stands at close to $153 billion as of the end of December. That’s a nearly $15 billion increase over the year prior.
In January, the median sale price in Camden County jumped 23% year over year to $304,900, according to data from Bright MLS.
Demand hasn’t waned in the Pennsylvania suburbs since the pandemic spurred widespread moves out of cities and into their surrounding counties. The already high prices are also getting a push from new construction developments being planned and built, often with luxury amenities and price tags.
The residential real estate in Montgomery, Chester and Bucks counties totals over $359 billion, adding nearly $28 billion in value in 2023, according to Redfin.
Philadelphia’s real estate gained over $791 million in value in 2023, bringing the aggregate value of residential real estate in the city to $228 billion.
“[Homebuyers are] holding a massive amount of housing wealth, despite lackluster demand from buyers, because home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,” Redfin Economics Research Lead Chen Zhao said in the report. “Prospective buyers aren’t as lucky. The combination of elevated mortgage rates, high home prices and a limited pool of homes for sale means homeownership is about as unaffordable as ever.”
