Are you an investor looking for the next hottest real estate market? Then look no further than Paterson, New Jersey. The idyllic city is located on the north edge of the state, taking up the lower part of Passaic County. It’s home to two of the fastest-appreciating areas in New Jersey. The city’s population is also growing exponentially and is expected to continue growing. Read on to learn more about why investors are staking their bets on the Paterson, NJ, real estate market

Paterson is growing, and its markets are appreciating rapidly

According to the 2020 census, Paterson has experienced a staggering 9% population growth. The increase in population means more federal funding to invest in the city’s public services and infrastructure. The city is also very diverse: approximately 40% of its residents are foreign-born. Paterson’s welcoming vibe and multi-cultural population attract a diverse range of residents.

Paterson’s real estate market is appreciating at a rapid pace. Two of the city’s zip codes–07501 and 07522–are the fastest-appreciating zones in the state. The zip codes have seen a 32% and 26% growth, respectively, in real estate value. Because of this, the Paterson market is attracting top NJ real estate developers. They see the city’s growth and want to invest in its potential. Paterson currently has many major redevelopments underway and is expecting more in upcoming years.

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Paterson offers an easy commute to New York

High real estate prices in New York and North Jersey drive people to find more affordable housing elsewhere. Because Paterson is only 13 miles outside of New York, it’s an attractive option for those looking to commute. The city’s transportation infrastructure is excellent for commuters. The NJ Transit commuter rail service in downtown Paterson offers a 35-minute ride to Hoboken. The city also has plenty of freeway access, so residents can easily hop on and drive their commute.

Its real estate market offers plenty of affordable housing

Investors look for real estate markets with plenty of affordable options when housing prices skyrockets. According to Zillow, as of November 2023, the median price of homes in Paterson was $437,255 (up +5% YoY). Top NJ developers have already invested in multiple building projects across the city. The Paterson market is ripe with plenty of affordable properties, so investors have many great options. You can view Paterson houses for sale here

Paterson is home to the Great Falls of the Passaic River

Just a mile west of downtown Paterson lies one of the largest waterfalls in the country: the Great Falls of the Passaic River. The historical monument is located in the Paterson Great Falls National Historical Park. The 77-foot high waterfall was once used to power the country’s first hydropower system, spurring the American Industrial Revolution. Great Falls is a historic destination that attracts hundreds of thousands of visitors each year. The natural wonder adds value to the area and appeals to home buyers.

The city boasts a rich history and plenty of historic homes

Paterson is the birthplace of the American Industrial Revolution. Harnessing the power of the Great Falls led to Paterson becoming the country’s first planned industrial city. The city is also known as Silk City because of its central role in 18th-century silk production. The 200-year-old town, steeped in a rich history, attracts tourists from all over the country. Because of its age, Paterson has many historic homes to attract buyers. 

Downtown Paterson is lively and diverse

After a devastating fire in 1902, most of downtown Paterson was rebuilt with buildings that followed the Beaux-Arts style of architecture. These beautiful, historic buildings attract architectural buffs while adding to the city’s appeal. Nestled between the iconic buildings are many small, immigrant-owned businesses. Paterson’s bustling downtown area is a unique multi-cultural blend of shops and restaurants. While there, residents can enjoy diverse culinary options, including Mexican, Lebanese, and Balkan.

Are you searching for an investment property in New Jersey? At Casa Real Properties – Keller Williams Village Square Realty, our expert investment real estate agents know what it takes to find a smart investment property. For years, they’ve helped investors close on some of the best properties in New Jersey. Contact us today to speak with our experienced investment real estate team.

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About the Author: Nancy Pavic

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Nancy Pavic is an expert in the New Jersey real estate market. For the past 25+ years, she has brokered Casa Real Properties, a well-distinguished real estate office in the Northern New Jersey area. Her prestigious awards include membership into the Top 1% of Realtors, the “Circle of Excellence” award by the New Jersey Association of Realtors, a front page cover spread of Top Agent Magazine, and a recipient of the Mayoral Award for Financial/Real Estate at the 2009 Paterson Women’s History Awards Ceremony.