Paterson appreciation rates and housing market information

Paterson housing market information

With a population of 149,222, 47,169 total housing units (homes and apartments), and a median house value of $343,301, real estate costs in Paterson are among some of the highest in the nation, although house prices here don't compare to real estate prices in the most expensive New Jersey communities.

duplexes, homes converted to apartments, or other small apartment buildings are the single most common housing type in Paterson, accounting for 53.38% of the city's housing units. Other types of housing that are prevalent in Paterson include large apartment complexes or high rise apartments (26.49%), single-family detached homes (16.33%), and a few row houses and other attached homes (3.72%). Cities that are predominantly high-density buildings are relatively uncommon in the US. Because of the density, these types of cities are often walkable and compact, and often have a lively downtown.

Paterson is dominated by renter-occupied one, two, or no bedroom apartments. 64.95% of Paterson's dwellings are rentals.

At the end of World War II, American soldiers returned home triumphant and, with the help of the GI Bill, built homes by the millions on the edges of America's cities. These homes were predominantly capes and ranches, modest in size, but built to house a growing middle-class as the 20th century became the American century. Paterson's housing was primarily built during this period, from the '40s through the '60s. A full 52.38% of the city's housing hails from this era. Other housing ages represented in Paterson include homes built between 1939 and earlier (31.58%), and housing constructed from 1970-1994 (13.99%). There's also some housing in Paterson built between 1995 and later (2.05%).

Paterson home appreciation rates

Appreciation rates for homes in Paterson have been tracking above average for the last ten years, according to NeighborhoodScout data. The cumulative appreciation rate over the ten years has been 101.49%, which ranks in the top 20% nationwide. This equates to an annual average Paterson house appreciation rate of 10.14%.

Over the last year, Paterson appreciation rates have trailed the rest of the nation. In the last twelve months, Paterson's appreciation rate has been -7.63%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Paterson were at -1.55%, which equates to an annual appreciation rate of -6.20%.

Notably, Paterson's appreciation rate in the latest quarter is one of the lowest in America.

Relative to New Jersey, our data show that Paterson's latest annual appreciation rate is higher than 11% of the other cities and towns in New Jersey.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Paterson differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Paterson - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 1990, to assist you in making the best Paterson real estate investment or home purchase decisions.