Morris County, New Jersey

• by Carole VanSickle Ellis
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A Strong Market is Nothing New for this Northeastern County.

By: Carole VanSickle Ellis

Although many aspects of the 2020 U.S. economy are in limbo—if not all-out freefall—the residential real estate sector has remained on relatively firm footing. In markets in suburban and rural areas, single-family housing complete with a little personal space for “outdoor living” has become one of the hottest commodities in the country. This is particularly true in areas with highly concentrated populations, such as New York City, where there are many reports of suburban properties within driving distance of the city receiving dozens of offers within hours of going on the market. Some analysts have gone so far as to compare the current “urban exodus” as “reminiscent of the one that fueled the suburbanization of America in the second half of the 20th century,” wrote New York Times reporter Matthew Haag.

While some markets in the area around the Big Apple are experiencing their initial taste of what it means for the community and housing prices when city residents start leaving the city, Morris County, New Jersey already had a pretty good idea of what kind of benefits being within driving distance of New York City but offering all the attractions of a more casual, laid-back lifestyle can bring. Morris County communities regularly make the lists for “happiest people” (White Meadow Lake and Succasunna, The Crazy Tourist), and “Best Places to Live in America” (Parsippany-Troy Hills, Money Magazine). On top of that, the county is home to 33 Fortune 500 companies including Honeywell, Colgate-Palmolive, Pfizer, Novartis, Verizon, and Bayer. So, yes, there is a “real estate frenzy” going on in northern New Jersey, but for Morris County, it just means the market is already prepared to welcome new residents to an established, attractive, and resilient set of communities.

“Morris County has always had a good balance that attracts new residents,” said Carlo Siracusa, president of the residential brokerage at Weichert, Realtors. Weichert is a family of 18 full-service real estate-related companies headquartered in Morris County with more than 1,400 employees, and sales associates in 350 markets across 41 states. “The commute to New York City is phenomenal; pricing is just right, and there are lots of different property and lot sizes available. Morris County offers what people are looking for and what they can afford,” Siracusa added.

A Strong Location for Commuting & Community

Do not make the mistake of thinking the Morris County market is just a “bedroom community” for the Big Apple. Although the train ride from the county to the city is just about an hour and the drive is roughly half that, many residents stay local when they go to work at one of the nearly three dozen Fortune 500  businesses with headquarters, offices, or major facilities in the area. With three universities located in Morris County alone, more than half of the adult population holds a graduate degree, and the academic institutions and associated service sectors tend to insulate the local economy from most types of economic volatility.

“This is a great place to work,” Siracusa said. “The companies based here made the decision to be here for specific reasons, including a larger hiring pool of qualified people and close proximity to the city.” Add in the high caliber of Morris County public schools and just how much more square footage a buyer can afford in Morris County compared to an hour away in New York, and the market was irresistible to many even before the “urban exodus” hit. Morris County’s public schools have significantly higher average proficiency scores than school systems elsewhere in New Jersey, and the school system overall ranks in the top 5 percent of New Jersey public schools. The county boasts one of the highest concentrations of top-ranked public schools in New Jersey.

“This market offers something for everyone,” Siracusa explained. “Every township has its own flavor and personality.” The result is an array of options for buyers and renters fleeing the urban areas around New York City, which is probably why so many Morris County townships and neighborhoods make “top 10” lists for best places to live. For example, the borough of Madison was recently named one of the top 10 places to live in New Jersey “based on an influx of NYC buyers” according to New Jersey Business magazine. “We are seeing robust activity at all different price points,” observed borough historian and Madison agent Scott Spelker, citing the attractive downtown, train access, and proximity to highways as Madison’s big draws. New listings in Madison increased by nearly 54 percent year-over-year this past August alone.

Of course, all work and no play makes a housing market a very dull place to be—especially during COVID-19 lockdowns. Fortunately, Morris County residents are a short drive to the Jersey Shore in addition to being in a prime position for occasional commutes to the on-site office. Furthermore, the county has a full 13,000 acres of land set aside for county parks. Across the 38 specific locations, visitors can enjoy more than 150 miles of hiking trails, multiple options for swimming, boating, fishing, ice skating, snow-shoeing, hunting (in certain designated locations), and even art walks and other local events. The park system also boasts three national historic sites: Cooper Gristmill, Fosterfields Living Historical Farm, and Historic Speedwell. Central Park, the county’s newest recreational development, is the first fully accessible outdoor athletic facility of its kind and includes two hockey rinks, a ball field, volleyball courts, a cross-country course, dog parks, accessible play areas, and more than 11 miles of natural trails.

The Truth About the “Urban Exodus” to Morris County

Perhaps most positive for real estate investors considering acquiring property in Morris County or transacting shorter-term retail sales, the “urban exodus” trend is definitely real and certainly not new. This is true nationally, but is of particular import in Morris County.

“In many suburban markets, the pandemic has, ironically, accelerated a trend we were already starting to see: the migration from urban renter to suburban homeowner,” said RealtyTrac executive vice president Rick Sharga. “The combination of demographics and low interest rates was already driving this demand. The result is the housing market, in general, is very strong.”

In Morris County markets, in particular, median home prices have been rising steadily over the past five years. According to RentRange (see graphic), single-family residential home prices have risen 22 percent since 2015, hitting the $475,000 mark earlier this year. Gross rental yields (GRY) have risen as well, with weighted average GRY values in Morris County hovering just under 8 percent.

“Due to COVID-19 effects, many families are migrating out of the cities toward suburban areas that provide reasonable commute-times to the city. The Morris County area is still relatively affordable, so the market should continue to see elevated demand into next year,” RentRange analysts predicted in November 2020.

In addition to sustained demand for housing, Morris County also offers investors and homeowners another benefit that is extremely rare in the northeast: tax advantages. “Morris County is one of the more affordable counties to live in when it comes to the way taxes are distributed to residents and property owners,” Siracusa said. “Within the state of New Jersey, Morris County has relatively low property taxes.” New Jersey as a whole is known for high taxes, often ranking first or second in the country for highest rates.

Sustainable Strength into 2021

The year 2021, like its predecessor, is likely to be a challenging one for economic forecasters. With a change in the presidential administration, the ongoing difficulties associated with understanding and controlling the spread of the novel coronavirus COVID-19, and widespread political and social unrest and unease, the New Year and its economy is likely to remain extremely volatile into the third or even fourth quarter. However, housing markets like Morris County, which are economically insulated and in proximity to urban centers that are unlikely to experience permanent unpopularity regardless of current moving trends, are ideally situated to protect investor capital and generate relatively predictable returns.

“I always tell people who want to know about the future in Morris County that I don’t know the future, but I know the market today. That market is the best I’ve seen in 18 years in the business. This is not going away anytime soon, and it’s good to be in business in the Morris County community,” Siracusa said. “Our founder, Jim Weichert, could not have picked a better location to be in the real estate industry, and real estate investors have incredible options here. From raw property development, build-to-rent, to townhome and condo communities, this is the best market for buyers and sellers.”

Sidebar 1:

Weekend Getaways Gone Long: When Drivable Vacations Matter Most

On June 7, 2019, 2.6 million people traveled through U.S. airports according to the TSA. On that same date in 2020, about 440,000 travelers passed through airport gates. That was an all-time coronavirus high. The American approach to vacations has changed dramatically since March 2020, and household decisions about where to live are changing dramatically as well. The result is that certain markets within “drivable” distances of vacation destinations and outdoor recreation options are experiencing increasing demand as more homebuyers start thinking about where they’d like to be located in the event of another lockdown.

Not surprisingly, markets within a drivable distance of the beach are particularly attractive to new homeowners. While southeastern beaches are getting most of the media attention these days (Panama City Beach, Florida has made headlines for an increase in buyer attention of 74.4 percent, according to Zillow), northeastern shore options like the Jersey Shore are bringing in the buyers as well. However, in the northeast, not everyone wants to buy a home on “Jersey Shore”. Instead, they just want to be able to sink their toes in the sand sometimes without having to hop on a plane. That type of buyer finds it extremely hard to resist Morris County, New Jersey.

“We’re only an hour away from the Jersey Shore, which makes us perfect for a day trip,” observed Carlo Siracusa of Weichert, Realtors. If a homeowner wants to stay even more local, however, they can visit more than 10 beaches and lakeshore parks in the county itself.

And, if the water isn’t really your thing, the Berkshires are a mere three hours’ drive. Named one of the “12 Last Great Places” by the Nature Conservancy, the Berkshires offer numerous hiking trails, including portions of the Appalachian Trail, and plenty of parks, botanical gardens, and arboretums. Outdoor festivals are also common, making the entire area attractive in a time when many indoor entertainments are off the board in most parts of the country.

Sidebar 2:

Morris County: By the Numbers

• December 2020