Mark Zuckerberg is reportedly adding to his growing list of luxury homes with a waterfront property in the most in-demand section of one of most exclusive neighborhoods in America.
The Meta CEO and his wife, Dr. Priscilla Chan, are reportedly purchasing a recently completed luxury mansion on Indian Creek Island, a 300-acre, man-made island near Miami with a mere 41 lots and approximately 84 residents, TheWall Street Journal reported. Home prices on the island start at about $60 million, and the market price for a property like Zuckerberg’s ranges from $150 million to $200 million, Mick Duchon, a Miami Beach-based real estate agent with the Corcoran Group who specializes in high-end waterfront properties, told Fortune.
Even an undeveloped property can fetch big bucks on the island—one vacant lot of roughly the same size as Zuckerberg’s sold for a reported $105 million in 2025.
The property Zuckerberg reportedly purchased at 2 Indian Creek Island Road puts him in the most coveted area of the already exclusive island, Duchon said. On the western side of the island, where Zuckerberg’s property is reportedly located, lots are about 80,000 square feet, compared to about 50,000 square feet on the east side, according to Duchon. On this side, where Amazon founder and fellow billionaire Jeff Bezos also owns two lots, residents have better access to the open water of Biscayne Bay and a more expansive view with great sunsets, he added.
“That side of the island is perceived to be the most appealing,” Duchon said.
Bezos has been buying up properties on Indian Creek Island since he announced in 2023 he was leaving Seattle, Wash. for Florida. The Amazon founder first purchased a $68 million home that would end up being just a few doors down from Zuckerberg in 2023. Near the end of that year, he paid another $79 million for a neighboring property with the intention of combining the lots into a single compound—a trend Buchon said is increasingly common among wealthy buyers because of the scarcity of truly expansive waterfront properties in the area. Meanwhile, Bezos is living in a third Mediterranean-style property also on Indian Creek Island, on the east side, which he snapped up for $87 million in 2024. Last year, Bezos sold one of his Seattle homes overlooking Lake Washington for a record $63 million, the Puget Sound Business Journal reported.
Indian Creek Island operates as an independent municipality with its own government and private police who patrol by air, water, and sky. Access to the island is controlled by a single gated bridge, making safety and privacy a defining feature. Most of the interior of the island comprises an 18-hole golf course and the Indian Creek Country Club, with a limited number of members due, in part, to a difficult acceptance process and a $500,000 initiation cost.
It’s unclear whether Zuckerberg’s deal has closed yet. Miami-Dade county property records note the owner as a land trust. One of Zuckerberg’s future neighbors, Irma Braman, the wife of billionaire car dealer Norman Braman, told WSJ Zuckerberg said he planned to move into the property by April.
Meta did not immediately respond to Fortune’s request for comment.
Zuckerberg is the latest billionaire to pick up a Florida property, especially as a proposed ballot initiative gains steam in California that would impose a one-time 5% “billionaires tax” for any individual worth at least $1 billion dollars retroactive to Jan. 1, 2026. (To be sure, Zuckerberg still very much calls California home, having just invested $50 million through Meta for a Sacramento downtown revitalization and AI-focused project.) Google cofounder Larry Page also recently snagged a $173 million compound in Miami consisting of two waterfront lots in the city’s Coconut Grove area.
Indian Creek Island, in particular, is home to a number of high profile names, who, besides Bezos, include the financier Carl Icahn and former NFL quarterback Tom Brady.
Zuckerberg’s reported newest property is just the latest addition to the tech CEO’s growing portfolio of luxury homes across the U.S.
Palo Alto compound
Zuckerberg’s home base remains Palo Alto, Calif., where, according to The New York Times, he owns 11 properties in the Crescent Park neighborhood. Over more than a decade, Zuckerberg has poured $110 million into buying adjacent properties, in some cases drawing complaints from his neighbors.
Vegetation covers the front of Facebook Inc.’s Chief Executive Officer Mark Zuckerberg’s house in Palo Alto, California, U.S. on Saturday, July 14, 2012
Noah Berger—Bloomberg via Getty Images
Hawaiian estate
On the island of Kauai, about 100 miles northwest of Honolulu, Zuckerberg also owns a $300 million property commonly known as Koʻolau Ranch, spanning roughly 1,400 acres. He quietly added about 1,000 additional acres to the compound, last year, Architectural Digest reported, bringing his total Kauai holdings to more than 2,300 acres.
The ranch is one of Zuckerberg’s most secretive properties. Almost anyone who passes the compound security, including builders and other workers must sign non-disclosure agreements, Wiredreported. The ranch reportedly includes a 5,000 square-foot underground shelter with its own energy source.
The island of Kauai, where Zuckerberg is reportedly creating a 5,000-square-foot underground shelter, lies about 100 miles northwest of Honolulu.
DeAgostini—Getty Images
Lake Tahoe retreat
Zuckerberg created his own mountain compound in the Lake Tahoe area through the purchase of two adjacent estates in Tahoe City on the lake’s West Shore. Lake Tahoe, in the Sierra Nevada mountains between Nevada and California, has emerged as a popular destination for billionaires seeking a retreat, with both Google cofounder Sergey Brin as well as 2020 presidential candidate Tom Steyer owning homes there.
Zuckerberg bought the properties—known as Carousel Estate and Brushwood Estate—for a total of $59 million, or $22 million and $37 million, respectively, according to multiple reports. The Brushwood Estate in particular, dates back to the early 1900s and has only ever had two other owners, according to SFGate. The property has six bedrooms, five full baths, and a 2,293-square-foot guesthouse.
Zuckerberg created his own mountain compound in the Lake Tahoe area through the purchase of two adjacent estates in Tahoe City on the lake’s West Shore.
Christian Petersen—Getty Images
Washington, D.C. mansion
As Meta and Zuckerberg have engaged more with policymakers in Washington, D.C. during the Trump administration, the tech CEO reportedly picked up a $23 million mansion in Washington D.C.’s exclusive Woodland Normanstone neighborhood, Politicoreported. The 15,000-square-foot mansion is made of brick and limestone walls divided into three sections divided by glass enclosed “walkways.”
Mark Zuckerberg’s Washington D.C. home is located in the Woodland-Normanstone neighborhood.
Andrade-Rhoades—The Washington Post via Getty Images
Improved mortgage rates and softening home prices meant that close to half of Houston-area households could afford a median-priced home at the end of 2025, according to the quarterly Housing and Rental Affordability Report from the Houston Association of REALTORS®.
As mortgage rates fell to 6.23%, the median home price decreased 0.9% year over year to $337,200 during the fourth quarter. Given those numbers, the typical monthly homeownership cost — including mortgage payment, principal, taxes and insurance — was $2,280, down from $2,490 a year prior.
Houston households needed an annual salary of $91,200 to afford those monthly costs, down 3.4% year over year. That meant that 44% of households could afford homeownership, up from 40% in Q4 2024.
“After a challenging few years for buyers, we’re starting to see affordability move in the right direction,” said HAR Chair Theresa Hill. “If these trends continue, we could see even more opportunities open up for buyers as we move through 2026.”
For Citadel CEO Ken Griffin, the political implications of still-elevated inflation are not lost on him.
Inflation has come down a lot from 9% in 2022 to 2.9% in the government’s latest CPI report. Core PCE prices, the Fed’s favorite gauge of inflation, rose 2.9% in August, matching July’s climb.
But inflation has been sticky as tariffs take hold, and Griffin predicted inflation will continue to be in the mid-2% to 3% range next year, still above the Fed’s 2% target.
In 2024, the high cost of living was a focal point in Trump’s reelection campaign, and Biden-era inflation hurt Democrats. They lost the White House and Congress, while Trump won all seven swing states.
Many voters blamed Democratic policies—including stimulus spending—for sustained, high costs, exit polls found.
“There’s no doubt that the president and the Republicans came to power on the back of frustration with inflation,” Griffin said. “I would not underestimate how grating a 3% inflation rate could be to tens of millions of American households.”
Inflation could feature heavily in midterm elections next year, as the Republican Party looks to defend narrow majorities in the House and Senate. And voters are souring on Trump’s economy.
A recent Reuters/Ipsos poll showed only 28% of respondents approved of Trump’s handling of their cost of living. A YouGov/Economist poll put Trump’s approval rating on the economy at an all-time low of 35%.
One indicator of affordability has been a thorn in Trump’s side: high mortgage rates. Yet as Trump looks to the Fed for homeowner relief, many worry about political influence over the independent body.
Trump has been criticized lately for pressuring the Federal Reserve and threatening its independence. Critics argue that his efforts to appoint loyalists to the Fed, public calls to lower interest rates, and attempts to remove a sitting governor represent a clear move to sway monetary policy for political purposes.
Griffin advised that continued Fed independence would be in Trump’s interest.
“If I were the president, I would let the Fed do their job,” he said. “I would let the Fed have as much perceived and real independence as possible, because the Fed often has to make choices that are pretty painful to make.”
The Federal Open Market Committee cut interest rates by a fourth of a percent earlier this month to buoy a slowing labor market. The move comes after months of continued pressure from the Trump administration on Fed Chair Jerome Powell and other committee members to cut rates.
Still, President Donald Trump has been vocal about cutting rates further, even though the move likely will risk further price increases.
Griffin warned that erosion of Fed independence could lead to Americans conflating the White House and central bank.
“If the president’s perceived as being in control of the Fed, then what happens when those painful choices have to be made?”
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It pays less and less to buy and flip a home these days. From April through June, the typical home flipped by an investor resulted in a 25.1% return on investment, before expenses. That’s the lowest profit margin for such transactions since 2008, according to an analysis by Attom, a real estate data company.
Gross profits — the difference between what an investor paid for a property and what it sold for — fell 13.6% in the second quarter from a year earlier to $65,300, the firm said. Attom’s analysis defines a flipped home as a property that sells within 12 months of the last time it sold.
Home flippers buy a home, typically with cash, then pay for any repairs or upgrades needed to spruce up the property before putting it back on the market.
The shrinking profitability for home flipping is largely due to home prices, which continue to climb nationally, albeit at a slower pace, driving up acquisition costs for investors.
“We’re seeing very low profit margins from home flipping because of the historically high cost of homes,” said Rob Barber, Attom’s CEO. “The initial buy-in for properties that are ideal for flipping, often lower priced homes that may need some work, keeps going up.”
The median price of a home flipped in the second quarter was bought by an investor for $259,700, a record high according to data going back to 2000, according to Attom.
The median sales price of flipped homes was $325,000, unchanged from the first quarter, the firm said.
A chronic shortage of homes on the market and heightened competition for lower-priced properties are also helping drive up investors’ acquisition costs.
Home flipping profits have declined for more than a decade as home prices rose along with the housing market’s recovery from the housing crash in the late 2000s.
Consider, in the fall of 2012, the typical flipped home netted a 62.9% return on investment before expenses, Attom said.
Even as home flipping has become less profitable, such transactions remain widespread.
Some 78,621 single-family homes and condos were flipped in the April-June quarter, accounting for 7.4% of all home sales during the quarter — a slight decline from both the first quarter and the second quarter of 2024, according to Attom.
As home sales have slowed, properties are taking longer to sell. That’s led to a sharply higher inventory of homes on the market, benefiting investors and other home shoppers who can afford to bypass current mortgage rates by paying in cash or tapping home equity gains.
With many aspiring homeowners priced out of the market, real estate investors — whether those looking to buy and rent or home flippers — are taking up a bigger share of U.S. home sales overall.
Some 33% of all homes sold in the second quarter were bought by investors — the highest share in at least five years, according to a report by real estate data provider BatchData.
Between 2020 and 2023, the share of homes bought by investors averaged 18.5%.
All told, investors bought 345,752 homes in the April-June quarter, an increase of 15% from the first quarter, but a 12% decline from the same period last year, the firm said.
Even so, investor-owned homes account for roughly 20% of the nation’s 86 million single-family homes, the firm said.
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There’s no age limit when it comes to achieving significant financial milestones, but many people envision checking them off their list by a certain point in their lives.
Unfortunately, these days, amid high costs of living and economic uncertainty, most U.S. adults fall short of wealth-building goals: 77% say they aren’t completely financially secure, according to Bankrate’s Financial Freedom survey.
How old should you really be to land that dream job, start saving for retirement, earn six figures or buy your first home?
New research from Empower set out to answer those questions and explore how Americans navigate money milestones today.
Although just 17% believe people should hit financial milestones by a specific age, 44% are glad they achieved them when they did, per the report.
On average, Americans think you should start saving for retirement at 27, land your dream job at 29, buy your first home at 30 and earn six figures by 35, according to the research. Respondents also reported hoping to be debt-free at 41 and to retire at 58.
About half of Americans (45%) wish they’d saved money earlier and with more consistency in order to prepare for life’s big changes, the study found.
After planning for retirement and becoming a homeowner, Americans see several life events as significant wealth-building opportunities: investing in stocks (34%), investing in education (26%), changing career paths (21%), getting married (19%) and starting a business (19%).
Nearly one-third of respondents said they realized the value of having a financial plan or working with a financial planner after meeting a life milestone.
“For all ages, it’s important to talk to an advisor who can help create a tailored path specific to your financial goals and set you up for a realistic retirement lifestyle,” Stacey Black, lead financial educator at Boeing Employees Credit Union (BECU), told Entrepreneur last year.
There’s no age limit when it comes to achieving significant financial milestones, but many people envision checking them off their list by a certain point in their lives.
Unfortunately, these days, amid high costs of living and economic uncertainty, most U.S. adults fall short of wealth-building goals: 77% say they aren’t completely financially secure, according to Bankrate’s Financial Freedom survey.
How old should you really be to land that dream job, start saving for retirement, earn six figures or buy your first home?
Growing up in Belgium, I watched my mother leave for work at dawn every day to clean offices. She’d return home late, exhausted, and tell me about her day — the professors whose offices she cleaned often didn’t even acknowledge her presence. For them, she was the invisible person who emptied their trash. It was that invisibility that I vowed to escape. As a child, I didn’t know exactly how I would do it, but I knew that education was my way out.
That realization crystallized on a Sunday when I was just 11 years old. I stood in my mother’s bedroom, watching the smoke swirl from her cigarette as she sat immersed in one of the many classic novels she read on her days off. It was at that moment, as I gazed at her and the literary world she was trying to escape into that I made a promise to myself: I would break this cycle. I would rise above the generational poverty that had weighed on my family for as long as I could remember.
A few years later, my mother found love and remarried. We moved from Belgium to a small town on Cape Cod, where my stepfather lived. That move was life-changing for me. In this idyllic American town, I tasted freedom for the first time. I’ll never forget the feeling of buying my first bicycle, a pink Schwinn, with the $187.50 saved from my job at the Woods Hole Oceanographic Institute. The bike symbolized so much more than just a mode of transportation — it represented independence, a belief that I could chart my own path in life.
Guided by my stepfather’s best friend, a high school teacher who took me under her wing, I excelled academically. I set my sights high, applying to elite universities, and was thrilled when I was accepted to Georgetown for undergrad. Later, I would go on to earn two master’s degrees from other prestigious institutions. I thought I had played my cards right and that my hard work would finally help me break free from the struggles of my mother’s life.
But even as I achieved these educational milestones, the weight of my student loans loomed large. At each stage of my academic journey, I borrowed more, believing I was investing in a brighter future. However, with no one in my family to guide me through the basics of finance, I hadn’t fully grasped how those loans would compound over time, becoming a mountain of debt I could never climb out from under. Predatory interest rates meant that no matter how hard I worked or how much I paid, the debt never seemed to shrink.
By my late 30s, I had achieved professional success, but I still felt something was missing. With time running out to have children of my own, I decided to become a foster parent and build a family of choice. Welcoming children who had experienced homelessness and trauma into my home was both a challenging and rewarding experience. I transformed my rented house into a nurturing space where they could finally feel secure and loved. However, the reality of renting remained an ever-present threat. Our sanctuary could be taken away at any moment by a landlord’s decision, and the dream of owning a home seemed out of reach under the weight of my debt.
In 2020, just a few months into the pandemic, I received a call from the county’s adoption department about children ready to be adopted. Two years later, I officially adopted my three children from foster care. While the joy of creating my family was immense, I couldn’t shake the dream of offering them the stability I had always longed for as a child. I envisioned a home where they could grow up surrounded by the warmth of family, the sound of chickens clucking in the yard, the playful energy of rescue dogs, and perhaps even a donkey or two to guard against the coyotes that roam Southern California.
The author’s younger children.
Photo Courtesy of Mona de Vestel
Yet that dream felt impossibly distant, with $185,000 in student loans hanging over my head. Homeownership, which could provide the stability my children and I desperately needed, seemed like a fantasy.
Then, earlier this year, a life-changing letter arrived.
When I tore open the envelope from Mohela, I expected yet another reminder of the debt I had carried for over 20 years — a staggering $185,000 in student loans. But this time, it was different. The letter said, “Congratulations! Your balance is now $0.” I didn’t believe it at first. This had to be a hoax. It couldn’t be real. Was I free? When I called Mohela, the customer service representative confirmed it: “Congratulations! Your student loans have been forgiven.”
Thanks to the Biden-Harris administration’s student loan forgiveness program, my monumental debt was erased. For the first time in my adult life, I felt a wave of freedom I had never known.
Biden’s student loan forgiveness didn’t just erase a number from my balance sheet — it gave me back my ability to dream. Suddenly, homeownership wasn’t just a far-off hope — it was a real possibility. The generational cycle of instability that had haunted my family for so long was finally breaking. I could see a future where my children and I had a permanent place to call home, a sanctuary where we could plant roots without fearing losing it to a landlord.
But this isn’t just about my family. The Biden-Harris student loan forgiveness plan is a transformative policy, not just for me but for millions of Americans. Yet, with the recent court ruling blocking the latest iteration, many are still waiting for the relief I was fortunate to receive. For so many, that relief could mean the difference between financial ruin and stability, between being trapped in debt and having the freedom to invest in their children’s futures.
Despite having a stable career as a professor and ghostwriter, the crushing weight of my loans, exacerbated by predatory interest rates, kept me in a financial prison. Now, with the latest student loan forgiveness plan blocked by a federal judge, my heart aches for the millions still ensnared by this burden. The battle for relief is far from over.
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Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. We hope you’ll consider contributing to HuffPost once more.
The impact of student loan forgiveness goes far beyond dollars and cents — it’s about creating a pathway to hope, stability, and opportunity for a better life. As I prepare to buy my first home — a milestone no one in my family has ever achieved — I am reminded of the power of policies that lift people. The chance to dream again, to provide a stable future for my children, and to break free from the generational hardships of my past is something that every American deserves.
Mona de Vestel holds an MFA in creative writing from Goddard College and is a ghostwriter for thought leaders and visionaries. She is seeking publication for her memoir “The Invitation to Rescue,” a blend of personal reflection and magical realism. Mona also co-hosts the “Women Doing Big Things” podcast for female entrepreneurs. You can learn more at www.authormona.com.
Can’t afford to contribute? Support HuffPost by creating a free account and log in while you read.
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. We hope you’ll consider contributing to HuffPost once more.
Nationally, homeowners pay an annual average of $2,230 for $300,000 in home coverage.
Meanwhile, here in Denver, residents are paying $3,344 a year, according to the July home insurance report from the personal finance website Bankrate.
You’re paying $1,144 a year more than the average homeowner in the United States. The average monthly premium is a steep $260.
The reason? Gnarly storms, hail, tornadoes and wildfires.
While our insurance rates are higher than many places in the state, the more affordable city of Colorado Springs is paying slightly more: an average of $3,403 annually.
Arvada, at $3,196, and Westminster, at $3,219, offer slightly better deals than the Mile High City.
At least we’re not the most expensive place to insure a home nationwide.
In Florida, residents are paying $5,533 to get $300,000 in home insurance.
Why the super high rates? Hurricanes, flooding and even sinkholes gobbling up homes.
That’s followed by Nebraska at $5,249, thanks to hail, flash floods and tornadoes.
Oklahoma is at $4,700, due to a similar cocktail to Nebraska’s, plus earthquakes.
And neighboring Kansas has high rates too: $4,103. “Wizard of Oz” got it right. Tornadoes are painfully common.
Some states offer a bargain.
Vermont comes in at $806, West Virginia at $952, Delaware at $966, New Hampshire at $973 and Oregon at $986 per year for $300,000 of coverage.
“Keep in mind that while flooding is a concern in many states, flood insurance is not part of standard homeowners policies,” according to Bankrate. “If you live in an area at risk for flooding, you will need to purchase a separate flood insurance policy. Earthquakes are also a common homeowners insurance exclusion. Like floods, earthquake damage must be covered by a separate policy.”
And nationwide, insurance costs are up.
“Home insurance premiums have been steadily rising due to several factors, including increasing natural disasters, higher construction costs, and inflation,” wrote Joel Efosa, the CEO of Fire Cash Buyer, a company investing in fire-damaged homes.
“The frequency and severity of events like hurricanes, wildfires, and floods have significantly impacted insurers’ risk assessments, leading to higher premiums for homeowners,” he added. “And for those who are rebuilding homes, the cost has surged due to supply chain disruptions and labor shortages.”
So what should homeowners do to get the best rate?
“It’s essential for homeowners to regularly review their policies and shop around to ensure they get the best coverage and rates available,” Efosa notes.
Our state’s housing crisis is a big part of the explanation, and one cause of the crisis is the perversion of a well-intentioned 1970 law, the California Environmental Quality Act, known as CEQA. It has evolved into the most potent legal tactic to stifle housing development, contributing to high costs and limited affordability. Even when a proposed development can overcome the legal barriers, the homes finally approved are unaffordable to working families because a complex web of regulatory environmental mandates and fees add hundreds of thousands of dollars to the cost of each new home or apartment.
This is an obstacle to upward mobility for all Californians, especially young people — which in this state means especially Latinos, who are 40% of the population and make up more than half of residents under 18. CEQA needs to be reformed to put the American dream back within reach for young Californians.
The value of homeownership is profound, providing both housing and the long-term stability of being part of a neighborhood and school community, not to mention generational wealth and a nest egg. However, California is a hard place to achieve that dream. In 2022, only 46% of Latino households here owned their homes, compared with 51% nationwide. Rates were 59% in Texas, 55% in Florida and more than 70% in New Mexico.
With median California home prices soaring past $900,000 in April, California’s housing policy choices have made homeownership a distant dream for most younger residents and for most hard-working Latino families, many of whom do not inherit wealth from their parents’ home equity and who are not on a path to pass along appreciated home equity to their children.
CEQA, intended as a progressive environmental policy, now clearly undermines the economic potential of California’s Latino population. This process began in the 1970s, when a largely white, upper-class environmentalist movement emerged as a dominant political force. CEQA was enacted to minimize environmental harm from public works projects such infrastructure, but a 1972 court ruling expanded it to cover home building. After thousands of subsequent CEQA lawsuits, it now even applies to home remodeling.
This law has strayed far from its intended purpose and needs to be reined in. Virtually anyone — even those with no direct interest in the project or the environment — can sue to block housing for any reason. Cases can be filed anonymously. Sometimes one real estate company even sues to block another’s project for competitive reasons.
The state government’s Little Hoover Commission has urged the Legislature to exempt all infill housing from CEQA, which would allow more homes to be built on underutilized lots in areas that already have many homes. The commission also called for an end to anonymous CEQA lawsuits, a ban on lawsuits filed for non-environmental reasons, and the clarification and expedition of the CEQA process.
The upside-down mindset of current environmental policy ends up being anti-people and anti-environment. The California Air Resources Board, whose policies are enforced via CEQA, counts jobs and people who move out of a city or county as “greenhouse gas emission reductions” — even when these jobs and people relocate to states and even countries with far more lax environmental standards. California’s lost jobs and population would most likely increase global greenhouse gas emissions. So much for California’s climate change “leadership.”
Agencies and advocates promoting this “de-growth” agenda through CEQA share the “no growth” dogma of the environmentalists of the 1970s, which then and now really means “no growth of ‘those people.’” The intention is racist, and the effect is racist. The housing crisis hits Black and Latino Californians hardest, as even CARB and the nonpartisan Legislative Analyst Office now expressly acknowledge.
California cannot address its housing and homelessness crisis without building millions of new homes that are actually affordable to California’s working families — and doing so much faster, without the counterproductive legal barriers that add delays and costs.
CEQA reform is key to this. A good start would be an immediate moratorium on CEQA lawsuits based on any theory not expressly authorized by a statute or regulation. The governor simply needs to direct agencies, and urge the courts, to follow the law and reject those claims.
Today’s far more diverse Legislature ought to be able to do more as well, serving all Californians better than the sea of white male leaders and judges who have for so long been captured by NIMBY environmentalists.
It’s time we admit the failures of CEQA’s expansion and start making the policy changes needed to restore the American dream of homeownership for a younger, more diverse California.
Soledad Ursúa is an elected board member of the Venice Neighborhood Council. Jennifer Hernandez is a partner at the law firm Holland & Knight. Ursúa is the lead author of, and Hernandez is a contributor to, the recent report “El Futuro es Latino.”
JPMorgan Chase’s Heather Higginbottom, mortgage banking head of consumer originations, said the strength of their business is inextricably linked to the vitality of the communities they serve. Photo by Isaiah Singleton/The Atlanta Voice
JPMorgan Chase announced a national multimillion-dollar commitment for Black neighborhoods in Atlanta during a press conference June 18.
JPMorgan Chase is focusing on tackling heirs property challenges for homeowners across the country, including Georgia, through legal aid assistance, appraisal reform, and estate planning services.
Heirs property occurs when a homeowner dies without a will and several people gain rights to the land, regardless of whether they live on the property or have paid taxes.
Left unaddressed, heirs property creates unstable homeownership, making it difficult for residents to pass on property to the next generation and access disaster assistance programs that help pay for home repairs or property tax relief.
Following the press conference, two panels were held where speakers discussed strategies to address appraisal bias and heirs property, which disproportionately affect low-to-moderate income communities and hinder generational wealth accumulation.
The panelists emphasized the need for cross-sector collaboration, philanthropic investments, and policy engagement to combat these issues. Speakers also highlighted the historical and systemic factors leading to tangled titles and land loss in Black communities, and discussed progress made in enacting the Uniform Partition of Heirs Property Act.
Overall, the conversation emphasized the importance of a comprehensive approach involving all stakeholders to address these complex issues.
JPMorgan Chase’s Heather Higginbottom, mortgage banking head of consumer originations, said the strength of their business is inextricably linked to the vitality of the communities they serve.
“Business growth is dependent on healthy, strong communities with good paying jobs, with excellent schools and, of course, with safe and affordable housing,” she said. “Home ownership is much more than just where we physically live, but offers critical financial benefits, including the opportunity to secure equity, and it’s a key mechanism for building generational wealth as interest rates and mortgage costs are rising.”
Additionally, she said the path to sustainable homeownership has become increasingly difficult, and for many existing homeowners, including many in Atlanta, high rates of heirs property and appraisal bias have made it challenging to maintain homeownership and benefit from the equity of their property.
“Appraisal bias has serious economic consequences for families and for communities, discriminatory appraisal practices prevent homeowners from accessing home equity to pay for higher education, medical costs, home repairs, and we view heirs property as a similarly challenging and structural barrier that restricts the transfer of wealth across generations,” she said.
Furthermore, Higginbottom said JPMorgan Chase is committed to addressing these barriers, which includes the nine and a half million dollars they’re committing to limit the loss of wealth in underserved communities.
Additionally, the Atlanta Wealth Building Initiative (AWBI) and the Center for Community Progress received $1.7 million from JPMorgan Chase to support equitable development in historically Black neighborhoods in Atlanta.
AWBI was awarded $700,000 over two years to develop a first-of-its-kind, data-informed, brick-and-mortar development, and retention strategy for business owners in historically Black neighborhoods throughout Atlanta, like Cascade and the West End, using neighborhood level data and trends.
AWBI’s goal is to focus on filling knowledge gaps regarding the availability of affordable commercial spaces amid rising rents and patterns of business closures. The research will enable decision-makers to create meaningful and equitable change for Black business owners and the communities they serve.
This new place-based research and data will equip AWBI to co-create and promote policy and practice solutions alongside business-serving partners and their small business owner clients. AWBI plans topublish and promote an anti-displacement toolkit and technical assistance for use by leaders in the public and private sectors.
As a national expert in systemic vacancy and community revitalization, the Center for Community Progress is deploying its two-year, $1 million commitment from JPMorgan Chase to catalyze new development partnerships for affordable housing.
The Center for Community Progress plans to host convenings of developers and local land banks to help facilitate the redevelopment of vacant, abandoned, and deteriorated properties for affordable housing and develop recommendations for the philanthropy, policy, and financing fields to advance housing affordability, energy efficiency, and climate resilience.
The initiative will support diverse, non-profit, and mission-driven for-profit property development firms from Fulton, DeKalb and Gwinnett counties.
JPMorgan Chase has made more than $14 million in philanthropic contributions to nonprofits organizations in metro Atlanta over the past four years. In addition, this year alone, the firm supported more than 1,800 small businesses in Georgia with the capital they need to grow and thrive and provided them with more than 77,800 hours of advice and support.
Considering a move to New Jersey while keeping your job in New York? This choice comes with several advantages. New Jersey offers a more affordable cost of living, particularly in its attractive suburbs near NYC. Here, housing is significantly more accessible, potentially making homeownership a realistic goal.
There’s a financial perk: though New York tax is deducted by employers, New Jersey offers a tax credit for those taxes paid, often resulting in a substantial refund.
Numerous towns and cities in Northern New Jersey are under a 30-minute commute from Manhattan, which might even outdo the travel time from various New York City boroughs to work!
And you’ll be in good company. Out of the 4.7 million people working in New York City, around 20%, or close to one million, travel from New Jersey for work. Within the Inner New Jersey region, encompassing counties like Hudson, Essex, and Bergen, there are 2.6 million employees.
Key Takeaway
Hoboken, Teaneck, Summit, Weehawken, Englewood, Short Hills, Montclair, Hackensack, and Union City are highlighted as attractive options.
New Jersey offers a more affordable cost of living and housing compared to NYC, making homeownership more attainable.
NJ residents working in NYC can benefit from a tax credit, often resulting in substantial refunds.
Many NJ towns provide commutes to Manhattan under 30 minutes, competitive with intra-city New York travel times.
Approximately 20% of NYC’s workforce commutes from NJ, highlighting the state’s role as a significant contributor to the city’s labor pool.
Commuting options include NJ Transit buses and trains, ferries, and driving via major bridges and tunnels.,
Overview
According to a report by NYC Planning, only about half of the people living in Inner NJ work within their home county. The others commute to different parts of the metropolitan area (19%) or to other parts of New Jersey (29%). The Regional Plan Association notes that over 400,000 individuals made their way across the Hudson to work daily in 2019, a number that’s predicted to increase.
9. Hoboken: Flock for the NYC Buzz Without the Bustle
Often referred to as the unofficial “sixth borough” of New York, Hoboken is nestled south of Weehawken and Union City along the Hudson River. Renowned for its breathtaking Manhattan skyline views, Hoboken attracts a vibrant, young, and well-educated demographic. Its densely populated urban environment (boasting over 48,000 residents per square mile!) offers a lively city vibe minus New York’s hefty living costs and congestion.
A key benefit of residing in Hoboken? Its convenient location just a stone’s throw from Manhattan, near both the Lincoln and Holland tunnels, provides a variety of commuting options to NYC. The availability of alternative transportation is a boon, especially with the occasional train delays and cancellations.
MSP (January 2024): $899,055, up 7.3% year-over-year according to Redfin.
Median Sale Price Per Square Foot: $823, up 6.7% since last year.
Market Trends: The Hoboken housing market is very competitive, with homes receiving 2 offers on average and selling in around 23 days.
Migration & Relocation Trends: In Nov ’23 – Jan ’24, 30% of Hoboken homebuyers searched to move out of Hoboken, while 70% looked to stay within the metropolitan area. San Francisco homebuyers searched to move into Hoboken more than any other metro.
Climate Impact: 87% of properties are at risk of severe flooding over the next 30 years, and 100% of properties are at major risk of a severe wind event over the next 30 years.
During a weekend visit to Hoboken, I was immediately struck by the charm of Washington Street. The blend of old and new, from the classic brownstones to the modern eateries, created a vibrant atmosphere.
I found myself at a cozy café, where the aroma of fresh coffee and the sound of laughter filled the air.
A local, noticing my curiosity, shared stories of Hoboken’s transformation, emphasizing the community’s pride in their waterfront and parks. It wasn’t just the skyline views that captivated me, but the sense of belonging in a city that, despite its proximity to the hustle of Manhattan, felt like a world away.
8. Teaneck: A Peaceful Commuter’s Haven in NJ, Brimming with Outdoor Fun
Teaneck, home to over 40,000 residents, emerges as an idyllic living spot for those seeking proximity to NYC while yearning for a tranquil, nature-filled environment. This town offers a serene suburban experience by the Hackensack River, featuring 250 acres of parkland, including the expansive Overpeck County Park and various golfing options, yet allows for a New York commute of only about 30 minutes.
Positioned further west than many well-known NJ commuter towns, Teaneck still provides a surprisingly efficient journey to the city. Its accessibility to the George Washington Bridge, Lincoln Tunnel, and I-95, complemented by rapid bus services, makes it a standout choice.
Median Listing Home Price (January 2024): $629.5K, trending up 26% year-over-year according to Realtor.
Median Home List Price (January 2024): $549,000, up 20.9% from the previous year.
Median Sale Price: Ranges from $575K to $669,990, with variations indicating a competitive market.
Median Sale Price Per Square Foot: Approximately $334, reflecting the property values in the area.
Home Values Range: From $232,700 to $1,870,000, with the median estimated value of a home in Teaneck being around $595,145.31.
Commute from Teaneck to NYC:
Utilizing a NJ Transit bus, residents can reach Midtown or Upper Manhattan in roughly 30 minutes. Alternatively, driving can take 20-30 minutes when traffic is light outside of peak hours.
7. Summit: Not Just a Hill, But a High Point for NYC Train Commuters
Choosing Summit as your home means embracing a slightly longer commute compared to towns along the Hudson River, yet many find the trade-off entirely worthwhile. Summit consistently ranks as one of New Jersey’s finest towns, drawing in ex-city residents seeking suburban tranquility without sacrificing access to nightlife and cultural attractions. It’s especially appealing to families, offering stellar education options and abundant outdoor activities, including the Watchung Reservation’s hiking trails and local arboretums.
MSP (January 2024): $770,000, down 18.5% year-over-year as per Redfin.
Median Sale Price Per Square Foot: $585, up 21.1% since last year.
Market Trends: The Summit housing market is most competitive, with homes selling in around 12 days, a significant decrease from 45 days last year.
Migration & Relocation Trends: In Nov ’23 – Jan ’24, 30% of Summit homebuyers searched to move out of Summit, while 70% looked to stay within the metropolitan area. San Francisco homebuyers searched to move into Summit more than any other metro.
Climate Impact: 17% of properties are at risk of severe flooding over the next 30 years, and 100% of properties are at major risk of a severe wind event over the next 30 years according to Risk Factor.
Commute specifics from Summit to NYC
For those driving, the journey spans 23 miles to New York, taking around 40 minutes via the Hudson Tunnel into Tribeca during off-peak times. Summit also boasts two direct NJ Transit train lines to NYC, typically completing the trip in under an hour. The Morris & Essex line originates from Summit Station, facilitating a convenient and efficient commute to the city.
My accidental discovery of the Summit Opera House, where a local theater group was rehearsing, turned into an afternoon of delightful conversation and impromptu performances. The passion of these Summit residents for their arts scene was infectious.
They spoke of Summit’s supportive community, excellent schools, and the joy of living in a place where culture and community intertwine. This experience underscored Summit’s unique charm, where the arts flourish and neighbors gather to celebrate creativity.
6. Englewood: So Close to the GW Bridge, You Could Throw a Frisbee Over It
Englewood stands as a somewhat undiscovered treasure among New Jersey locales near New York City. Situated just a bit inland from the Hudson River and nestled among Fort Lee, Tenafly, and Teaneck, Englewood presents a serene setting enriched with amenities. The city boasts a vibrant commercial sector for shopping and entertainment, natural beauty at the Flat Rock Brook Nature Center and Overpeck County Park, and a range of affordable, varied living spaces.
What sets Englewood apart is its strategic location, making it an ideal commuter town for those working in Yonkers, the Bronx, or Upper Manhattan, diverging from the usual focus on Midtown Manhattan employment. The proximity to the George Washington Bridge — a mere five-minute drive — alongside available bus and train connections, underscores its appeal.
Median Sale Price (January 2024): Ranges from $430K to $794,000, with variations depending on the specific area within Englewood.
Per Square Foot: Approximately $341, indicating the value of properties in the area.
Market Trends: The Englewood housing market is somewhat competitive, with significant year-over-year price increases in certain areas.
Median Listing Home Price (January 2024): $687.5K, trending up 50.3% year-over-year.
Housing Market Dynamics: Homes in Englewood are selling after an average of 85 days on the market, reflecting a relatively active market.
Home Values and Trends: Englewood’s housing market shows a wide range of home values and a dynamic market with significant year-over-year growth in listing prices.
Traveling from Englewood to NYC
Commuters have the option of taking a bus directly to the GW Bridge Bus Terminal, then accessing the New York subway system at the 175th Street-George Washington Bridge station in Upper Manhattan.
5. Short Hills: North Jersey’s Elite Suburb, Boasting Top-Notch Transportation Options
Short Hills stands out as one of the most affluent communities in North Jersey, offering an escape from city life’s hustle and density. This suburb is selected for its high quality of life and excellent educational opportunities rather than its cost of living.
Residents of Short Hills enjoy a serene lifestyle, with pedestrian-friendly neighborhoods, highly ranked schools, an engaging downtown, and picturesque surroundings. Despite feeling a world apart from New York, the commute from Short Hills to NYC is remarkably brief, thanks to a variety of transport options.
Residents benefit from straightforward access to major highways such as I-78, I-95, the Garden State Parkway, and the New Jersey Turnpike. The area is well-connected by two NJ Transit train lines
Median Sale Price (January 2024): Ranges from $2.9M to $3,217,500, indicating a significant increase in home values according to Movoto.
Median Listing Home Price (January 2024): $2.2M, trending down -20.4% year-over-year.
Market Trends: The Short Hills housing market is experiencing substantial growth, with home prices up 94.2% compared to last year.
HMD Homes in Short Hills are selling after an average of 67 days on the market, reflecting a relatively active market despite the high price point.
Home Values Range: From $183,200 to $1,950,000, with the median estimated value of a home in Short Hills being around $1,648,312.12.
Commuting from Short Hills to NYC
The primary mode of commuting is by NJ Transit trains. The Gladstone Branch Line offers routes to Hoboken, including direct trains to Penn Station, while the Morristown Line (also known as Midtown Direct) ensures a direct commute to Penn Station in as little as 35 minutes. Opting for the Gladstone line to Hoboken, commuters can then choose the PATH train or ferry for their final leg.
For those preferring to drive, Manhattan or the Upper East Side is about an hour’s journey outside peak traffic times. Alternatively, the Lakeland Bus Line provides another option with routes from Summit to Wall Street or Midtown, with the Summit Park & Ride located merely 4 miles from Short Hills.
4. Weehawken: Catch the Ferry Faster Than You Can Say “Manhattan, Please!”
Weehawken Township is frequently cited as an ideal place for New Jersey residents working in NYC celebrated for its “dream commute” by the New York Times. Positioned on the Hudson River’s edge, directly opposite Manhattan, it boasts a direct link to Midtown via the Lincoln Tunnel.
The Port Imperial neighborhood stands out as a highly sought-after area for those commuting to the city, offering luxury living along the waterfront and hosting some of New Jersey’s priciest properties. Picture starting your day at 7:15 AM, catching the 7:20 ferry, and arriving at your office by 7:40 AM!
Travel options from Weehawken to NYC include
a brief 15-minute journey to Midtown on the 8-minute Port Imperial / Weehawken Ferry; a 15-20 minute bus ride on the NJ Transit Bus 128 to the Port Authority Bus Terminal; or a 15-20 minute drive during non-peak hours. The Port Imperial Terminal also provides easy access to the Hudson-Bergen Light Rail.
Median Listing Home Price (January 2024): $821,500, trending down -17.8% year-over-year.
Median Home List Price (January 2024): $1,162,500, down 8.8% from the previous month.
Per Square Foot: Information available but not specified in the summary.
Average Sale Price (January 2024): $1,018,500.
Median Home Value: $770,600.
In Weehawken, the panoramic view of Manhattan from Hamilton Park was breathtaking, but it was the stories from a local historian that truly enriched my visit. He recounted tales of duels and dreams, pointing out landmarks and sharing anecdotes that you wouldn’t find in any guidebook.
This personal history lesson, set against the backdrop of the city lights, highlighted Weehawken’s blend of historical significance and modern allure. It was clear that Weehawken’s residents take pride in their town’s unique position—physically, historically, and culturally—on the edge of one of the world’s most vibrant cities.
3. Montclair: Because Who Wouldn’t Want a Manhattan Skyline View with a Side of Quiet?
While Montclair may be situated a bit further from New York City than other suburbs mentioned, it stands out as one of New Jersey’s premier family-friendly commuter towns. This affluent neighborhood is celebrated for its stunning residences, vibrant arts culture, and dynamic university presence, courtesy of Montclair State University, the state’s second-largest institution. This contributes to a youthful demographic and a lively downtown scene.
Montclair’s reputation as an excellent commuter town to NYC is well-earned, with straightforward, direct Manhattan access.
MSP (January 2024): Ranges from $950K to $1,125,500, indicating a significant increase in home values.
Median Sale Price Per Square Foot:Approximately $483, reflecting the high demand and value of properties in the area.
Market Trends: The Montclair housing market is very competitive, with homes selling rapidly and for prices significantly higher than the previous year.
Housing Market Dynamics: Homes in Montclair are selling after an average of 59 days on the market, showcasing a brisk and active market.
Home Values Range: From $182,100 to $1,950,000, with the median estimated value of a home in Montclair being around $1,040,529.49.
Commute from Montclair to NYC
Thanks to the Montclair-Boonton Line, Montclair boasts frequent direct trains to NYC, with departures every 30 minutes on weekdays. Depending on the station in Montclair, the travel time to Penn Station ranges from 30-45 minutes, though rush hour can extend this duration, sometimes causing delays in the tunnel. An alternative for late-night returns is parking at a Newark station and taking the PATH train.
2. Hackensack: A Distinguished and Family-Friendly City, Minutes from NYC
As Bergen County’s most populous city, Hackensack lies approximately 12 miles from Midtown Manhattan and 7 miles from the George Washington Bridge according to this report. This city, known for its density, ranks as one of the safest residential areas in the region, boasting family-friendly communities and well-regarded educational institutions. Living in Hackensack offers multiple commuting options to New York City, providing flexibility and alternatives to accommodate delays.
Median Sale Price (January 2024): $330K, up 0.8% year-over-year.
Median Sale Price Per Square Foot: $360, up 25.4% since last year.
Market Trends: The Hackensack housing market is somewhat competitive, with homes receiving 2 offers on average and selling in around 65 days.
HMD: Homes in Hackensack are selling after an average of 65 days on the market, indicating a steady demand.
Home Values and Trends: Hackensack’s median sale price is 17% lower than the national average, while the overall cost of living in Hackensack is 20% higher than the national average.
Traveling from Hackensack to NYC
The journey to NYC covers 20 miles and can take as little as 40 minutes during off-peak hours. Routes include taking the Holland Tunnel for access to Lower Manhattan or crossing the George Washington Bridge to reach Washington Heights. Alternatively, the NJ Transit bus service from Hackensack Bus Terminal to Port Authority typically spans about an hour. For train commuters, a transfer is necessary; take the Pascack Valley Line from Anderson St. Station to Secaucus, then switch to the North Jersey Coast Line for Penn Station.
1. Union City: For Those Who Like Their Big Apple With a Slice of Suburbia
Situated just north of Weehawken, Union City lies along the Hudson River, opposite Manhattan, and stands as one of the most populous cities in New Jersey near NYC. It offers an urban lifestyle close to the heart of the action without the hefty price tag associated with living in New York.
Union City is recognized as one of the most budget-friendly areas for homebuyers near NYC, with a median home price of $450,000—considerably lower than neighboring areas. For context, the median home prices are $644,000 in Jersey City, $860,000 in Hoboken, $960,000 in Weehawken, and $1.3 million in Manhattan, making Union City a significantly more accessible option for those looking to purchase in the NYC metro area according to Redfin.
While the commute from Union City to NYC may not be as quick or direct as from Weehawken, its proximity to the Lincoln Tunnel facilitates several bus routes into the city.
Median Sale Price Per Square Foot: $331, up 0.9% since last year.
Market Trends: The Union City housing market is somewhat competitive, with homes receiving 3 offers on average and selling in around 68 days.
Migration & Relocation Trends: In Nov ’23 – Jan ’24, 30% of Union City homebuyers searched to move out of Union City, while 70% looked to stay within the metropolitan area. San Francisco homebuyers searched to move into Union City more than any other metro.
Climate Impact: 16% of properties are at risk of severe flooding over the next 30 years, and 100% of properties are at major risk of a severe wind event over the next 30 years.
Commute details from Union City to NYC
Approximately 20 minutes via NJ Transit buses (routes 129, 154, or 159) to the Port Authority Bus Terminal.
6 More Noteworthy Towns
If you’re still on the lookout for the perfect commuter town, consider these notable mentions that didn’t top the list for living close to NYC, primarily due to their longer commute times.
Morristown: This town is celebrated for its diversity and historical significance, complemented by a highly acclaimed school system. It offers a direct train service to NYC, with the journey to Manhattan taking about 70 minutes.
Atlantic Highlands: A quaint Victorian town with stunning views over the lower New York Bay. The ferry ride to the city takes about an hour, with a longer commute time if traveling by bus.
Upper Montclair: This affluent section of Montclair is known for its exceptional public and private schools. Train commutes to the city are typically under an hour.
Fort Lee: A densely populated borough located on the banks of the Hudson River, Fort Lee is rich in history and home to Fort Lee Historic Park. Commuting to NYC by train or bus is about 50 minutes.
Berkeley Heights: Ideal for those who love the outdoors, offering activities like fishing, horseback riding, and hiking. The direct train to Manhattan from Berkeley Heights takes around an hour.
Millburn: Renowned for having one of the best school districts in New Jersey, along with family-oriented facilities. The train commute to Manhattan is approximately 45 minutes.
FAQ
What are the childcare options like in these New Jersey towns for working parents commuting to NYC?
Many of these towns offer a variety of childcare services, including daycares, preschools, and private nannies. Community centers and local businesses often provide programs for children, especially during the summer months. It’s advisable to research specific towns as options can vary, but the overall availability and quality tend to be high, reflecting the family-oriented nature of these communities.
Can I rely on public transportation within these NJ towns, or is a car necessary?
While some towns boast robust public transportation systems that make it easy to get around locally and commute to NYC, others may have more limited options. In more suburban or rural areas, having a car might be necessary for daily errands and accessing local amenities. However, towns closer to NYC, like Hoboken or Montclair, offer more public transit options that reduce the need for a car.
How do the schools in these NJ towns compare to those in NYC?
Generally, New Jersey is known for its high-quality public and private schools, with many towns on this list boasting top-rated educational institutions. The state often ranks highly in national education assessments, offering strong academic programs, extracurricular activities, and sports. This contrasts with the varied performance of NYC schools, where quality can significantly differ by district.
What are the healthcare facilities like in these commuter towns?
These towns are well-served by a range of healthcare facilities, from community clinics and specialist practices to major hospitals. Many residents find that healthcare services in these areas are easily accessible and of high quality, with several towns being in close proximity to renowned hospitals in New Jersey and New York City.
Are there any hidden costs to living in these NJ towns while working in NYC?
While living in New Jersey can offer savings on housing and taxes, potential hidden costs include commuting expenses (such as train, bus, or ferry tickets), parking fees if you drive, and higher car insurance rates in some NJ areas. Additionally, while property taxes in New Jersey can be high, the overall cost of living may still be lower than in NYC.
Final Words
Making the leap from New York City to one of New Jersey’s commuter-friendly towns can offer a blend of suburban tranquility, financial benefits, and still keep you closely connected to the vibrant pulse of the city.
Whether you’re drawn to the bustling streets of Hoboken, the serene parks of Teaneck, or the historic charm of Summit, there’s a slice of New Jersey waiting to welcome you with open arms.
The promise of a more affordable lifestyle, coupled with the potential for a better quality of life and community-oriented living, makes this move especially appealing for those looking to balance their career ambitions with personal and family needs.
As we’ve explored, the
Disclaimer
All information presented in this text is based on our own perspectives and experiences. The content is provided for informational purposes only and is a reflection of the personal views of the authors. It should not be taken as professional advice, nor should it be used as a basis for making significant decisions without consulting a qualified expert. We do not guarantee the accuracy or reliability of the information provided and shall not be held responsible for any inaccuracy, omissions, or inaccuracies. We highly recommend consulting with a qualified expert in the relevant field for personalized guidance or advice specific to your situation.
Undocumented immigrants could have a new pathway to the American dream of owning a home.
Assemblymember Joaquin Arambula (D-Fresno) introduced Assembly Bill 1840 last month to expand the eligibility requirement for a state loan program to clarify that loans for first-time buyers are available to undocumented immigrants.
The California Dream for All Shared Appreciation Loans program that launched last March by the California Housing Finance Agency offered qualified first-time home buyers with a loan worth up to 20% of the purchase price of a house or condominium. The loans don’t accrue interest or require monthly payments. Instead, when the mortgage is refinanced or the house is sold again, the borrower pays back the original amount of the loan plus 20% of the increase in the home’s value.
The original program was established in an effort to help low- and middle-income individuals buy a home, but the program doesn’t address eligibility based on immigration status, Arambula said.
“It’s that ambiguity for undocumented individuals, despite the fact that they’ve qualified under existing criteria, such as having a qualified mortgage,” he said in an interview. “Underscores the pressing need for us to introduce legislation.”
If Assembly Bill 1840 is passed, it would broaden the definition of “first-time home buyer” to include undocumented immigrants.
Without the explicit status, undocumented individuals may be discouraged or left out of the opportunity to participate, Arambula said.
“Homeownership has historically been the primary means of accumulating generational wealth in the United States,” he said. “The social and economic benefits of homeownership should be available to everyone.”
The California Dream for All Shared Appreciation Loans program hit its applications limit of about 2,300 applicants in 11 days last year and the program was halted.
This year, the program will replace its first-come, first-serve basis with a lottery. Interested people can submit their application now, with the lottery taking place in April.
Another change to the program is its income eligibility threshold, which was 150% of a county’s median area and has been dropped to 120%. That means applicants must earn less than the threshold annually to be eligible. In Los Angeles County, the income threshold is $155,000.
Property taxes are critical to consider when evaluating real estate, especially since they can differ not only between states but also between individual properties. On average, households in the United States pay about $2,400 annually in real estate taxes, but these amounts can fluctuate widely. For investors, the variation in tax rates is a pivotal … Read more
For many young Americans, the dream of owning a home feels less like a middle-class milestone and more like a prize available only to those with family money or extraordinary incomes.
The monthly mortgage payment on a median-priced home has increased 15% in the last year, while incomes have only increased by 4%. And even if mortgage rates fall in the next year, an increase in activity from buyers striking while the iron is hot would heat up competition and send prices up enough that it will be harder to afford to buy.
“The minute those interest rates come down, all hell’s going to break loose, and the prices are going to go through the roof,” said Barbara Corcoran, the renowned real estate mogul and television personality.
According to Corcoran, buyers will rush off the sidelines if interest rates drop significantly, creating a frenzy that could push prices to record heights.
Corcoran’s bad omen has left some young adults nihilistic about their housing future. Many feel they will be stuck renting forever without a viable way to buy their first home.
In a TikTok clip of Corcoran’s comments, one user replied, “I should’ve bought a house at 7.” Another stated, “I’m adjusting my horizons to: I will rent until I’m 40 years old.” According to a recent Redfin RDFN survey, one in five Millennials believe they will never own a home. However, there are other options besides postponing or forgoing homeownership.
Here are four compromises to consider to buying before home prices climb further out of reach:
Reconsider Your Location
If you are priced out of your current neighborhood, don’t despair. There may be affordable homes in different areas that offer similar or even better amenities. A growing share of homebuyers is relocating to more affordable locations. They are leaving Los Angeles for Las Vegas, San Francisco for Sacramento and New York for Northport, Florida.
Remote workers, in particular, have an advantage. The freedom to work from anywhere opens up possibilities to live in areas with a lower cost of living while maintaining your current job. Moving closer to family or friends can make you wealthier in intangible ways by sharing resources. Extended family can help with childcare and a friend can give you a ride to the airport.
Start With An Investment
If you don’t want to live anywhere else, you can still buy without moving. You can continue to rent in your desired location while purchasing an investment property in an affordable area. That way you can start building equity that can be used towards a more expensive home in the future.
Take, for instance, Philip Garcia, who, while living in California, bought an investment property in his hometown of El Paso, Texas, which is one of the most affordable housing markets in the country. By renting out the El Paso property, he generated rental income and gained equity, which he was able to put towards buying additional homes, including his current residence in Seattle.
“I spent my 20s living in very high-cost areas (Bay Area, Los Angeles), where I wasn’t in a position to buy,” Garcia said. “But I had always been interested in building wealth through homeownership. So I looked at the savings I had built up by the time I was 31 and identified a market where I could afford to buy a home to rent out and made it happen. The math all looked good, so I did it again and again. Now, the results are better than I expected, I have three cash-flowing assets that have appreciated well since I bought them.”
Reevaluate Home Style
If you’ve been priced out of owning your ideal home with a yard, garage and spacious interior, consider a more modest home. Single-family homes typically cost 20% more than townhomes and 29% more than condominiums.
There are upsides to choosing a townhome or a condo. Living in a dense, walkable area with transit, parks and restaurants might offer a healthier, more environmentally friendly lifestyle than a sprawling suburb. And although townhomes and condos don’t typically have private yards or garages, they often come with shared amenities.
Team Up
Another strategy for affording homeownership is to find a partner to co-own. You and your buying partner could live together as roommates, treat the property as a pure investment, or explore arrangements where one partner pays rent to the other for sole occupancy.
However, if you’re buying a home with someone you’re not married to, it’s imperative to establish a legally binding contract that outlines clear terms for sharing the property and a plan for dissolving the partnership if necessary.
In Conclusion: Stay Flexible
While the road to homeownership may seem steep, it’s not an unattainable dream. Aspiring homeowners can navigate the challenges and secure a home by adopting these strategies and staying vigilant in a rapidly changing market. The key is to remain flexible, resourceful and informed so you can easily make it through the twists and turns of the housing market.
Homeownership comes with a lot of perks — and costs. However, the financial weight of owning a home varies from region to region, with some homeowners spending almost 30% of the state’s median income on annual homeownership costs such as maintenance, utilities, and insurance, a new study found.
But which states are the most expensive to be a homeowner?
According to a new report by the New Jersey Real Estate Network, a real estate platform, California is the most expensive state to be a homeowner, with an annual cost of $24,252 — marking 28.84% of the state’s median income of $84,097.
California is also home to some of the most pricey zip codes in the U.S. According to a report from U.S. World News, of the top 10 most expensive cities to live in America, seven are in California, with San Diego and Los Angeles taking the first and second spots, respectively.
As for the most expensive states, New York came in at No. 2, where homeowners spend $18,636 a year onhousing costs (28.8% of the state’s median income), and New Jersey, with an annual homeowner spend of $22,200 (24.75% of the state’s median income).
The report was compiled by taking census data and using it to compare annual average housing costs in relation to states’ median income.
Here are the top 10 most expensive states to own a home, according to the New Jersey Real Estate Network.
Young homebuyers like open spaces with functionality and personalization.
IKEA USA
My parents were in their 20s when they bought their first home. It was the 1950s, Midcentury Modern, (my mother’s favorite furniture style) was just modern, and the house, a Dutch colonial in Brooklyn with four bedrooms, one full bath and two half baths, cost them about $25,000. That would be about $285,000 today, adjusted for inflation.
It was a perfect home for a family of that era, with a finished basement for kids to play in during the winter and a side yard for outdoor games in the warmer months. That mattered more than the whole family sharing one bathroom at the end of the hall, not uncommon in the decades before ‘master suites’ came to dominate home plans. It was located in a safe, walkable neighborhood with good schools too.
My childhood house most recently sold for $1.25 million in 2018, putting it out of reach for most 20-somethings wanting to start their own families in the next few years, as my parents did. In that way, it’s an exemplar of our times, and one of the reasons why Generation Z only owns about 2% of American homes. It’s not for lack of desire!
Real estate technology firm Hommati reports that 97% of these young adults, born between 1997 and 2012, want to become homeowners – most before they’re 35! I asked several experts how to help them fulfill these dreams and ideals. Their responses, sent by email, follow.
Benefits of Home Ownership
“The core benefits of homeownership haven’t changed over the decades, but their significance for young people, particularly in terms of long-term financial outcomes, has been magnified,” shares Rob Chrane, CEO of Down Payment Resource, a firm that helps match eligible buyers with homeownership assistance programs.
Owning a home is the most powerful vehicle most Americans have for building wealth, he points out, with the median net worth of homeowners 40 times higher than renters. “Gen Z’ers who buy a home early in life will benefit from more years of appreciation and equity accumulation,” he adds.
There are non-financial benefits too, Chrane notes. “Studies have consistently shown that homeowners experience better educational and health outcomes compared to renters. Stability and ownership pride often translate into greater investments in the local community, leading to the creation of better, safer, and more stable neighborhoods and communities.” This has benefits for their children’s generation too. It’s much harder to achieve for these young parents than it was for mine – and probably yours too.
American Dream Challenge
“Throughout the three waves of the America at Home Study, we observed significant insights into the perspectives of younger generations. One finding is that younger generations tend to define home as ‘family’ to a greater degree compared to other generations who are more inclined to define home as a ‘safe place’ and ‘comfort,’” shares Teri Slavik-Tsuyuki, the study’s co-founder and principal at community development research firm tst ink.
Sadly, there are major gaps between their yearning for home, family, comfort and their perceived ability to achieve these, she observes. Covid widened them. “While the pandemic had major ramifications for everyone, it greatly influenced the well-being of younger generations in contrast to their older counterparts. Their mental, emotional and financial well-being faced heightened challenges when compared to other age groups,” she says.
Vision of Home
Here’s what these hopeful buyers would like to achieve when they finally have the means to become homeowners. “In their homes, they love DIY projects and love to personalize individual products while aligning with their sustainable practices,” reveals Abbey Stark, interior design leader at IKEA USA. “They aspire to have purposeful and unique spaces that they can create an escape from the chaos of the world and everyday life. They believe in the importance of curating spaces to fit their wants and needs.,” she adds. That DIY inclination will prove extremely helpful in buying some of the fixer homes available in lower price ranges.
When it comes to their key kitchen and bath spaces – some of a home’s most valuable square footage – they’re focused on personalized and very functional spaces, Stark says. “They enjoy mixing vintage, repurposed and sustainable products.” Self-care is prioritized for a sense of wellbeing and comfort, shaping spaces that are easy to use. Technology is also essential for these buyers, the designer adds.
Down Payment Hurdle
“The biggest barrier to homeownership for young, early career homebuyers often isn’t the monthly mortgage, it is the immense challenge of saving for down payment and closing costs — which typically exceed $10,000 on the very low end,” Chrane observes. Elevated home prices are driving these numbers up too, he adds.
The good news is that there are down payment assistance (DPA) programs that can help first time buyers, he shares, including HUD-approved housing counselors that meet national standards, plus online courses. “The ‘best’ DPA could come down to how the assistance money can be used. Can it be used to cover closing costs so the buyer doesn’t have to rely on the seller to cover those and can thus make a more competitive offer on a contract? Can the funds be used to reduce the first mortgage interest rate? Reduce mortgage insurance costs? Cover pre-paids? Repairs on the new home? Eligible uses of funds could be the difference maker for some buyers,” he suggests. These assistance programs are also starting to become available on manufactured and multi-family housing, opening more options for buyers.
There are more than 1300 agencies, including state and local housing finance agencies, cities, nonprofits and others helping new homebuyers, Chrane comments, sharing a link homebuyers can use to research what’s available for them.
The CEO urges young buyers to research their options sooner rather than later. “Don’t wait around for the market to change, and don’t wait around to learn what your path to homeownership looks like.” Being prepared in a volatile market seems like sound advice.
Some costs are unavoidable, but others can be reduced with a little effort.
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A recent analysis reveals that homeowners pay nearly $15,000 a year in hidden costs. We’ve already covered why monthly mortgage payments are higher than anticipated because of such factors as property taxes, insurance, and issues revealed during the underwriting process.
However, a new study by Zillow and Thumbtack reveals that utility payments and essential home maintenance projects are other hidden costs. And homeowners can expect to pay $14,155 a year, or $1,180 a month in hidden costs related to owning a home.
This amount skyrockets to $22,000 a year in San Francisco, New York, and Los Angeles. At the other end of the spectrum, Las Vegas has the lowest hidden cost of homeownership at $9,886, followed by Asheville, NC ($11,318) and St. Louis ($11,824).
Avoidable vs. unavoidable costs
Since property taxes are determined by location, there’s not much you can do about them. “Average annual property tax bills can range from $1,055 in Pittsburgh to $9,145 in New York,” says Amanda Pendleton, Zillow home trends expert. “Homeowners in Chicago and Los Angeles pay similar annual property taxes: $5,617 and $5,840 respectively – even though typical home values in Los Angeles are nearly three times higher than those in Chicago.”
Utility costs are based on the rates set by local utility companies and regulators, as well as the amount of energy and water used. “Areas with very hot summers and/or very cold winters, for example, may see seasonal spikes in energy usage to keep the AC and heat on,” Pendleton says. According to Forbes Home, Americans spend an average of $429.33 a month on utilities, and this amount includes energy, water, internet, natural gas, phone, and streaming. Of course, it varies depending on where you live.
But at a time when housing affordability in the U.S. is at the lowest levels since 1996, these hidden costs might force renters to stay where they are. Not that renting is necessarily affordable, but it takes up less of the average consumer’s income than monthly payments – and that’s without the addition of these hidden expenses.
“These costs can be daunting for a new homeowner who has to stretch their budget just to afford a home in today’s housing market,” Pendleton says. And if they didn’t factor in these expenses, she warns that they might be forced to delay planned renovations or new furniture for the home.
However, essential home maintenance projects are essential for a reason. Maintaining appliances, central heat and air, the roof, fire and chimney, gutters, and lawn are not tasks that homeowners can afford to delay until later.
“The cost of essential home maintenance projects varies by city and takes into account everything from an area’s cost of living to supply and demand, with imbalances driving prices up in certain cities,” explains David Steckel, home expert at Thumbtack. “Climate change is also a contributing factor, with large temperature swings and extreme weather becoming more prevalent and putting stress on the existing professional supply base.”
Cities like Los Angeles and New York consistently have higher prices for projects. However, Steckel has been seeing a price increase in cities that have experienced a recent population boom, like Tampa and St. Petersburg, FL. “And in some areas, the real estate market may also have pushed pros to live outside the urban center, forcing them to commute in,” Steckel says, adding that this can lead to an increase in base fees for jobs.
How to prepare for and handle hidden costs
Even if you live in one of the cities with the lowest hidden cost of homeownership, coughing up the additional money each year could be a challenge. These are three tips to help:
Evaluate your spending
If you don’t already have a budget in place, Erica Wright, financial advisor at Northwestern Mutual, recommends calculating your expenses over the past few months.
“Dividing your expenses into three categories – fixed expenses, discretionary expenses, and savings – helps you to take a closer look at your overall spending habits,” she explains. Once you’ve calculated your expenses, she recommends using the 60-20-20 rule when creating a budget. “This means 60 percent of your budget is allocated toward your fixed expenses, 20 percent is used for discretionary spending, and the last 20 is used for emergency funds and goals.”
The next step is to identify specific areas in which you can cut back to save more money. “A good place to start is by identifying budget leaks like hidden fees, excess subscriptions, and the purchase of unnecessary products,” Wright advises. Also consider cutting the cord on your cable services (or at least trimming it down to just the basic package), and shopping around for the best phone plan.
Get an energy audit
An energy audit can help you determine where your home is wasting money. “A homeowner can see savings almost instantly after an audit, and energy audits performed by qualified contractors can cost as little as $100 to $500,” says Greg Fasullo, CEO and energy expert at Elevation.
So, how does this work? He says a contractor can evaluate your home’s energy usage and identify weak points to simplify the process of making improvements. “Audits are now eligible for a tax credit through the Inflation Reduction Act, and in some states, utility companies will generally have incentives to make home improvements that will conserve energy.”
Some companies provide free energy audits, but even if you pay for one, Fasullo says it’s worth it to gain a better understanding of where you’re wasting heat and air, so you can insulate and seal these areas. “Insulation, duct sealing, well-sealed windows, and energy-efficient appliances can help improve air distribution, reduce energy consumption, and extend heating and cooling equipment lifespan.”
In addition, he recommends installing a home energy monitoring device. “This will help you to better understand your consumption behavior and make permanent changes accordingly to reduce energy usage and overall bills.” For example, Fasullo explains you’ll learn to use appliances like dishwashers or washing machines during off-peak times, when utility prices are typically lower.
Consider another home or location
If you’re a first-time buyer, you don’t have to defer your dream of home ownership just because of these hidden costs. According to debt attorney Leslie H. Tayne, founder and managing director of Tayne Law Group in New York City, one option is to downsize your expectations. “A larger house can cost a lot to maintain, and purchasing a smaller home, or even a townhouse or condo, can reduce many expenses.”
Another idea is to consider moving to another locale – especially now that working from home is an option for many people. “Moving can make a major difference in your overall budget if you live in a high-cost area or a state that levies high taxes,” Tayne tells us. “For example, moving to a state such as Florida, Nevada, or Texas can save you thousands on income taxes each year – and states such as Oregon and New Hampshire have no statewide sales tax, which can significantly reduce your overall cost of living.”
And if an interstate move isn’t something you would seriously consider, she says even moving from a major city to purchase a home in a smaller suburb can often reduce your expenses significantly.
The housing market has experienced a series of changes over the past couple of years — from record-high prices to ruthless competition. But now, with some signs signaling a cooling market (in certain places, at least), other areas are seeing shifts, notably a rise in demand for condominiums.
In February, the average cost of a single-family home went down by 0.7% from the same period last year, while a median-priced condo experienced a 2.5% increase, per data from the National Association of Realtors.
In some areas, condos are even more expensive for buyers than median-priced homes. According to real estate analysts at Point2, there are as many as 20 U.S. cities where this is happening, including Detroit, Michigan, which took the top spot, with the average home price of $58,000 versus the average condo price of $229,000 — a 75% difference.
Detroit led the rankings by a long shot. Second was Birmingham, Alabama, where the average home price is $174,000 versus $246,000 for condos — a gap of 29%.
While there are several reasons people are attracted to condos versus homeownership — less maintenance, upkeep and utility costs — condo living isn’t for everyone. So if you’re looking to make the move from a building to a home, one of these 20 cities may be worth looking into.
