New Online Tool for Real Estate Shoppers

With the cost of real estate fluctuating wildly in the current economy, many potential buyers are not sure what to pay for a house.

Residents, and prospective residents, will now have a new tool to use when calculating what it will cost to purchase real estate in town. The New Jersey Association of REALTORS (NJAR) Governmental Research Foundation (GRF) has a new online database that compares wages for selected occupations with the costs of owning or renting a home in any of the state’s 21 counties, including Union County.

Called “Paycheck to Paycheck,” the database is the first attempt by a state organization to utilize the model originally created by the nationally-recognized Center for Housing Policy. The purpose of the New Jersey-specific Paycheck to Paycheck database is to examine housing affordability around the state.

“Paycheck to Paycheck is a tremendous way for consumers to analyze the affordability of various housing options throughout the Garden State,” said NJAR GRF President Bill Hanley. “Beyond providing a tool for the public to examine their individual housing opportunities, this database is an excellent platform to draw attention to the importance of providing more people with safe and affordable housing. Every day, realtors see firsthand the frustration and discouragement of working families unable to realize their dream of homeownership. This database is another way we are working to shed light on some of the housing issues facing New Jersey.”

The database reveals an average home price in Union County at $375,000, with an average household income of $172,443 needed to afford a home in the county. But the disparity comes into play when the average salaries of certain professions, such as a police officer, elementary school teacher or a nurse are revealed. These professions pay between $55-$70,000 a year.

While the database may scare off working class homebuyers, Mary Ellen O’Boyle with Burgdorff ERA Realty in Westfield says there are limitations to any kind of database. Boyle, echoing a line used by many real estate agents in the current economy, said the current economic recession has created a perfect storm for buying in markets like Westfield. She described selling a home in Westfield to a police officer last year that was made possible by lower interest rates and less competition in the market.

“A few years ago, Westfield was not a town for first-time home buyers, but the conditions have changed dramatically, making it possible for working class families to consider living here,” said O’Boyle.

Bergen County, home to Alpine, one of the most expensive housing markets in the country, proved to be the most expensive homeownership market in the state, with a median home price of $481,250. Salem County, the state's smallest, is the least expensive area to purchase a home, with a median home price of $147,500. Union County falls in the upper third most expensive county to own or rent a home.