Development and investment is on the rise in Newark, but while the city’s economic revitalization should be celebrated, there’s a bit of a struggle to balance the needs of longtime residents with the effort to attract newcomers. Most Newarkers are renters, which means buying a home in the Brick City comes with unique challenges. 

If you’re looking to purchase a home in Newark, consider these six factors.

Affordable Housing

As Newark’s renaissance gains more attention, longtime residents fear displacement. The median household income in Newark is $34,000, and with this in mind, Newark passed a landmark inclusionary zoning policy in 2017. In new projects with more than 30 or residential units, 20 percent must be designated as affordable housing. The city has also prioritized affordable home ownership.

Buying Downtown

Most new high-rise buildings in Downtown Newark are primarily rental units, so when looking to buy, you might have the most luck in the Ironbound District, a centrally located neighborhood that borders Downtown Newark. Typical properties in the Ironbound include multi-family houses that were developed in the early 1900s.

But keep in mind that 78 percent of Newark residents are renters, so homes sell fast once they hit the market.

Property Taxes

Understanding New Jersey’s property tax system is essential when buying a home in the Garden State. New Jersey has the highest property taxes in the nation. For financial and political reasons—property tax revals are expensive and unpopular—municipalities often put off conducting revals for many years.

What does this system mean for Newark? The average property tax in New Jersey is $8,690, but this is less than Essex County, which has the highest average property tax in the state. 

This might seem like a hidden opportunity for homebuyers, but Newark’s last reval was conducted in 2013, well before Newark’s revitalization picked up steam. So when purchasing a home, be mindful that, if and when, the city conducts its next reval, quickly developing neighborhoods are subject to property tax increases.

Public Transit

Newark acts as a central transportation hub for New Jersey. Downtown Newark, the Ironbound, and University Heights are perfect neighborhoods for commuters. From Newark Penn Station and Newark Broad Street station, commuters can reach New York City and other New Jersey towns in minutes. NJ Transit bus service, the Newark Light Rail, and the Newark City Subway also makes traveling within Newark easy.

Going Car-less

Living in urban areas without cars is increasingly popular, especially for millennials. In Downtown Newark, thanks to its easy access to public transportation and walkable neighborhoods, going car-less is possible. Still, Newark has a way to go before it matches other cities that offer ample alternatives to driving. 

For instance, Newark has a small but growing network of bike lanes. But unlike Jersey City and Hoboken, which partner with Citi Bike and Hudson Bike Share respectively, Newark doesn’t participate in a bike-share program. Activist groups Brick City Bike Collective and Safe Streets Newark work to promote biking, encourage bike lanes, and increase pedestrian safety in the Brick CIty. 

Climate Change and Resiliency

In 2012, Superstorm Sandy was a wake up call for New Jersey; towns and cities throughout the state are now working to address the realities of climate change. As one of the nation’s oldest cities, Newark faces significant infrastructure challenges. During heavy rainfall, certain neighborhoods are prone to flooding and sewer backups. In particular, Downtown Newark and the Ironbound—residential neighborhoods with high density—sit just a few feet above sea level.

Enter Newark DIG (Doing Infrastructure Green), a coalition of civic organizations working towards establishing sustainable green infrastructure and improving flood resiliency in Newark.