With NJ home prices skyrocketing, what’s Gov.-elect Mikie Sherrill’s plan to lower the costs?

The gubernatorial showdown in New Jersey finally came to an end on Nov. 4, with residents electing Rep. Mikie Sherrill (D) to the office over former Assemblyman Jack Ciattarelli (R).

It was a closely watched race nationwide, and while electing either candidate would’ve meant change for the Garden State, Gov.-elect Sherill made plenty of housing promises in her campaign that her constituents are hoping she will live up to now that she has the office.

Back in February, the state earned a C- on the Realtor.com® State-by-State Housing Report Card, signaling a tough mix of high costs and limited construction in the area.

Yet homes remain in high demand across the state. Cities like Wayne and Marlton landed on the Realtor.com Hottest ZIP Codes in America for 2025.

Listings in those areas saw 3.6 times more views and sold 30 to 42 days faster than the national average.

However, buyers tend to be older and wealthier, with stronger credit profiles and larger down payments than typical U.S. buyers.

So what exactly is the new governor-elect’s plan to improve the housing market in New Jersey—and what challenges lie ahead for her to do so?

The state of New Jersey’s housing market today

According to the National Low Income Housing Coalition, New Jersey faces a shortage of more than 200,000 housing units for low-income residents.

Additionally, more than one-third of New Jersey households are cost-burdened, spending over 30% of their income on housing, according to Harvard University’s latest State of the Nation’s Housing report.

At the same time, parts of the state are red-hot markets. In fact, certain New Jersey counties within the New York City metro area saw the biggest jump in housing “hotness” rankings among large U.S. metros, climbing 44 spots to become the 158th hottest market in September. And the momentum is growing.

“The New Jersey housing market has been red-hot over the last five years,” Realtor.com Senior Economic Research Analyst Hannah Jones explains. “At the onset of the pandemic, buyer demand in the state surged as home shoppers from surrounding economic hubs, such as New York and Philadelphia, set their sights on well-located New Jersey towns that offer more bang for your buck. As a result, inventory levels plummeted, pushing competition and home prices higher. Home prices were 44.7% higher on October 2025 compared with October 2019. The median listing price in October was $550,000, below the historical New Jersey peak of $590,000 in July 2024, but well above the $380,000 median in October 2019.”

“The main difference in the candidates’ housing agendas boils down to Jack Ciattarelli’s opposition to the state’s affordable housing law, while Mikie Sherrill wants to make it work,” Micah Rasmussen, director of Rider University’s Rebovich Institute for New Jersey Politics, told the New Jersey Monitor ahead of the election. “Both candidates want to focus new housing units around mass transit, but Ciattarelli goes a step further with his goal to push affordable housing into our cities.”

Affordable housing in NJ and Where it Stands

​​In March 2024, Gov. Phil Murphy signed major legislation to strengthen enforcement of the Mount Laurel Doctrine, New Jersey’s constitutional rule that every town must provide its fair share of affordable housing.

New Jersey’s affordable housing system dates back nearly 50 years, when local NAACP branches and South Jersey residents first organized and took legal action to establish it.

However, in the decades that followed, may towns resisted compliance and found workarounds to delay their housing obligations.

That’s why this 2024 law is considered one of the strongest in the nation, as it requires all towns to update their master plans and zoning rules to allow more affordable housing for low- and moderate-income families.

It also streamlines the development process, making it easier for towns to meet their obligations and expand affordable housing options statewide.

Additionally, towns that miss deadlines or block affordable housing risk losing legal protection from exclusionary zoning lawsuits.

Mikie Sherrill’s approach: increasing new construction

During her campaign, Rep. Sherrill made affordable housing one of her key platforms.

She pledged that on Day 1 of her administration, she would declare a state of emergency on utility costs and freeze utility rates for homeowners and renters.

After that, her focus intends to be continuing on the work laid out by her predecessor Murphy and enforcing the 2024 law. But she’s also vowed to take things a step further.

In October, inventory levels in New Jersey were 56.4% below those pre-pandemic (October 2019).

This is the third-biggest gap in the country, behind Connecticut and Illinois.

In October 2019, there were roughly 40,400 homes for sale in New Jersey.

In October 2025, there were just 17,600 homes for sale.

While much of that is due to baby boomers holding on to their homes rather than downsizing, another major factor is the lack of new construction.

Realtor.com found that New Jersey’s new-construction premium—the price gap between new and existing homes—stands at 74.1%, one of the steepest in the country.

That indicates that most new builds are high-end properties, far out of reach for middle-income buyers.

“The New Jersey housing market has slackened slightly in recent months,” Jones says. “Inventory levels have climbed on an annual basis for the last 19 months, and home prices have fallen annually for the last five months. Despite this modest progress, supply remains constrained in the state, meaning buyers will likely continue to face high prices and competitive market conditions.”

Sherrill says she intends to change that.

“As governor, I am committed to improving housing affordability by increasing new home construction that meets the needs of all residents,” she said in a statement on her campaign website. “More housing will expand opportunities for homeownership and help drive down rental costs as supply increases.”

In September, Sherrill joined Ciattarelli at a candidate forum hosted by New Jersey Realtors and the New Jersey Builders Association, addressing more than 300 real estate professionals and builders.

During the event, Sherrill added that her approach focuses on opening more pathways for first-time buyers.

“Housing costs are up over 50% in just the past five years, making homeownership inaccessible for so many families,” she said. “That will change when I’m governor. I’ll expand first-time homebuyer assistance to increase access to homeownership and generational wealth, and end diversions from the Affordable Housing Trust Fund so these funds actually go toward expanding housing options families can afford.”