The gubernatorial race in New Jersey wrapped up on November 4, with Rep. Mikie Sherrill from the Democratic Party emerging victorious against former Rep. Jack Ciatarelli, who represented the Republican Party.
With either candidate likely to bring changes to the state—a situation that’s attracted national interest—Governor-elect Sherrill has made a variety of housing commitments, which voters are hopeful will be fulfilled during her term.
A February report from Realtor.com® gave New Jersey a C- on its State Housing Report Card, highlighting a challenging mix of steep costs and limited construction activity.
Despite these challenges, there’s a sustained demand for housing, especially in cities like Wayne and Marlton, which made it onto Realtor.com’s 2025 list of America’s Hottest ZIP Codes.
In these areas, listings garnered 3.6 times more views and sold 30 to 42 days quicker than the national average.
However, potential buyers here are typically older, wealthier, and possess better credit scores compared to the average U.S. buyer.
So, what plans does the incoming governor have to enhance New Jersey’s housing landscape, and what hurdles might she encounter?
Current State of New Jersey’s Housing Market
The National Low Income Housing Coalition reveals that New Jersey faces a deficiency of over 200,000 low-income housing units.
Moreover, a recent report from Harvard University indicates that more than a third of households in the state are considered cost-burdened, spending over 30% of their income on housing.
Some counties in New Jersey have turned into competitive hotspots, with certain areas within the New York City metropolitan region ranking 44 spots higher in popularity recently—now the 158th most sought-after market in the U.S.
“New Jersey’s housing market has heated up significantly over the past five years,” remarked Hannah Jones, a senior economic research analyst at Realtor.com. “Initially, during the pandemic, demand surged as buyers from nearby economic hubs like New York and Philadelphia sought properties in well-situated New Jersey communities, leading to dwindling inventory and soaring prices. Home prices in October 2025 rose by 44.7% compared to October 2019, with median listings at $550,000—still below the peak of $590,000 recorded in July 2024 but notably above the $380,000 median from October 2019.”
“The primary distinction in the housing policies of the candidates is that Jack Ciatarelli stands against the state’s affordable housing law, whereas Mikie Sherrill advocates for its implementation,” said Mika Rasmussen, director at the New Jersey Institute of Politics before the election. “Both candidates aim to center new housing around public transportation, but Ciatarelli pushes for more affordable options in urban areas.”
Affordable Housing in New Jersey: An Overview
In March 2024, Governor Phil Murphy bolstered New Jersey’s affordable housing program by signing a significant bill that enhances the enforcement of the Mount Laurel Principles, a constitutional guideline mandating that all towns provide equitable affordable housing.
This program originated nearly 50 years ago due to community-driven efforts from local NAACP chapters and residents of South Jersey.
Despite this, compliance resistance was noted in subsequent decades, with municipalities finding ways to avoid meeting housing mandates.
The 2024 Act is regarded as one of the strongest housing laws nationwide, obligating towns to refresh their master plans and zoning laws to facilitate more affordable housing for low- and moderate-income families.
It also simplifies the development process, making it easier for municipalities to comply and broaden affordable housing availability statewide, with penalties for those that fail to meet deadlines or obstruct affordable housing initiatives.
Mikie Sherrill’s Strategy: Boosting Construction
During her campaign, Congressman Sherrill prioritized affordable housing as a key issue.
She initiated a state of emergency regarding utility expenses on her first day in office, proposing to freeze utility bills for both renters and homeowners.
Continuing the efforts of her predecessor, Murphy, Sherrill plans to implement the 2024 law while also pledging to extend efforts further.
October inventory levels were noted to be 56.4% lower than pre-pandemic figures (October 2019), marking the third most considerable decline in the U.S., after Connecticut and Illinois.
In October 2019, around 40,400 homes were available for sale, yet this dropped to just 17,600 by October 2025.
This downturn is partly attributed to baby boomers choosing to stay in their homes rather than downsize and significantly due to the scarcity of new construction.
As reported by Realtor.com, New Jersey has a substantial new construction premium—with prices of new homes averaging 74.1% higher than existing residences, making them less accessible to middle-income buyers.
“Recently, the housing market in New Jersey has shown some sluggishness,” Jones commented. “Inventory levels have experienced annual growth for the last 19 months, yet home prices have been declining for the past five months. Still, with supply remaining limited, buyers may continue facing elevated prices and fierce competition in the market.”
Sherrill aims to address this issue.
“As governor, I’m dedicated to enhancing housing affordability by increasing the production of homes that cater to all residents,” she stated on her campaign platform. “Growing the housing supply opens up homeownership options and helps alleviate rental costs.”
In September, Sherrill participated in a candidate forum alongside Ciatarelli, organized by the New Jersey Association of Realtors and the Builders Association, attended by over 300 real estate professionals and builders.
At the forum, she emphasized her strategy to broaden access for first-time homebuyers.
“Housing costs have surged by over 50% in the past five years, creating barriers for many families aspiring to own a home,” she noted. “If I am elected governor, I will change that. I plan to enhance support for first-time buyers, promote the proper use of the Affordable Housing Trust Fund, and ensure these resources truly benefit families in securing more affordable housing options.”
