Paterson, NJ Real Estate Market
Analytics built by: Location, Inc.
Raw data sources: American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.
Date(s) & Update Frequency:
- Home Values, Rents: Reflects Q2 2024. Updated quarterly.
- Setting, Housing Stock, Homeownership: 2022 (latest available). Updated annually.
Methodology: NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data
Paterson, NJ Housing Market Trends
With a population of 156,661, 49,678 total housing units (homes and apartments), and a median house value of $375,435, Paterson real estate values are some of the lowest in New Jersey, although compared to real estate around the nation, Paterson homes are still considered rather expensive.
Duplexes, homes converted to apartments or other small apartment buildings are the single most common housing type in Paterson, accounting for 54.08% of the city's housing units. Other types of housing that are prevalent in Paterson include large apartment complexes or high rise apartments ( 25.37%), single-family detached homes ( 16.83%), and a few row houses and other attached homes ( 3.52%). This particular housing mix is relatively uncommon and characteristic of cities that are compact and walkable, and which often have a lively downtown.
Paterson is dominated by renter-occupied one, two, or no bedrooms apartments. 74.01% of Paterson's dwellings are rentals.
At the end of World War II, American soldiers returned home triumphant and, with the help of the GI Bill, built homes by the millions on the edges of America's cities. These homes were predominantly capes and ranches, modest in size, but built to house a growing middle-class as the 20th century became the American century. Paterson's housing was primarily built during this period, from the '40s through the '60s. A full 37.85% of the city's housing hails from this era. Other housing ages represented in Paterson include homes built before 1939 ( 32.77%) and housing constructed between 1970-1999 ( 20.24%). There's also some housing in Paterson built between 2000 and later ( 9.15%).
Paterson Home Appreciation Rates
Paterson's appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Paterson during the period has been just 5.50%, which is lower than 70% of US communities.
Appreciation rates are so strong in Paterson that despite a nationwide downturn in the housing market, Paterson real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Paterson appreciation rates continue to be some of the highest in America, at 9.38%, which is higher than appreciation rates in 83.47% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Paterson. Paterson appreciation rates in the latest quarter were at 2.82%, which equates to an annual appreciation rate of 11.77%.
Relative to New Jersey, our data show that Paterson's latest annual appreciation rate is lower than 70% of the other cities and towns in New Jersey.
One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Paterson differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Paterson - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Paterson real estate investment or home purchase decisions.
Median Home Value
$375,435
Very Low
for New jersey
High
for nation
Number of Homes And Apartments:
49,678
NJ
America
2024 Q1 - 2024 Q2
2023 Q2 - 2024 Q2
2022 Q2 - 2024 Q2
2019 Q2 - 2024 Q2
2014 Q2 - 2024 Q2
2000 Q1 - 2024 Q2
Average Market Rent:
$2,821 / per month