New Jersey builds infrastructure, faces outmigration
Driving growth
New Jersey's economic activity is being driven by substantial infrastructure investments. Projects like the Portal North Bridge, expected to open its first track in March 2026, and the ongoing replacement of the Raritan River Bridge are key components of this growth. Additionally, the Helix innovation campus in New Brunswick, a $650 million mixed-use project, is seeing its first phase completed in 2025, attracting biotech and life sciences firms.
Housing market right now
The New Jersey housing market closed 2025 with a median sales price across all property types at $525,000, a 5.4% increase from the previous year. In February 2026, the statewide median home price rose to $531,000, up 4.8% year-over-year. Inventory saw a 10% increase in active listings in November 2025 compared to the prior year, providing more choices for buyers.
Migration patterns
New Jersey has ranked last in outbound migration for eight consecutive years through 2025, according to United Van Lines data. A significant portion of those leaving are older, higher-income retirees, often seeking lower-tax and lower cost-of-living states. However, 21% of inbound moves to New Jersey in 2025 were individuals aged 18-34, indicating the state attracts younger professionals.
Economic headwinds
New Jersey's annual GDP growth is projected at 0.5% for 2025 and 0.4% for 2026, trailing the national average. The state's unemployment rate, averaging 4.7% in 2025, is projected to rise to around 5.2% through 2026 and 2027. Businesses in the region also cite uncertainty about regulations and government policies as a top concern.
Key facts
- New Jersey's minimum wage increased to $15.92 per hour for most employees as of January 1, 2026.
- The New Jersey State Planning Commission adopted a revised State Development and Redevelopment Plan on December 17, 2025.
- New Jersey Realtors reported 86,440 closed sales statewide in 2025.
- Choose New Jersey reported $1 billion in economic impact in 2025 through assisting 60 companies.
- Construction on Project 1 of the Newark Bay-Hudson County Extension Improvements Program is expected to begin in 2026.