New Jersey is no longer just an expensive place to buy a house. According to Fitch Ratings, it is one of the most stretched housing markets in America.
As of early 2026, Fitch estimated that U.S. home prices were 10.3% above long-term valuation trends. Nationwide, 81% of metro areas were overvalued, and 48% were overvalued by more than 10%. The Northeast led the pack with New Jersey at the center of it.
The Newark, N.J., metropolitan division ranked as the most overvalued housing market in the country, at 20% to 24% above sustainable levels. Tied with it: Philadelphia-Camden-Wilmington, a four-state metro that includes Camden, Burlington, Gloucester and other South Jersey counties. The larger New York-Newark-Jersey City metro, and the New York-Jersey City-White Plains division, both landed in the 15% to 19% overvalued range…